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Retail sales and restaurant receipts

Statistics on retail sales and restaurant receipts are compiled from the results of the Monthly Survey of Retail Sales and the Quarterly Survey of Restaurant Receipts and Purchases respectively.  The surveys include sampled establishments drawn from all the retail and catering establishments registered with the Business Registration Office of the Inland Revenue Department.

Retail sales statistics are primarily intended to measure the sales receipts of goods sold by local retail establishments, for gauging the short-term business performance of the local retail sector. They cover consumer spending on goods, but not on services. Moreover, they include spending on goods by visitors in Hong Kong but not by Hong Kong residents outside Hong Kong. Hence they should not be regarded as a comprehensive indicator of overall consumer spending.

Users interested in the trend of overall consumer spending should refer to the quarterly series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product (GDP). Compiled from a wide range of data sources, PCE covers consumer spending on both goods (purchased from all channels) and services by Hong Kong residents whether domestically or abroad.

Retail sales and restaurant receipts statistics are compiled based on the Hong Kong Standard Industrial Classification (HSIC) Version 2.0 and the series have been backcasted to October 2004 and the fourth quarter of 2004 respectively. Users may refer to the feature article "Revision of the Hong Kong Standard Industrial Classification" published in the November 2008 issue of the Hong Kong Monthly Digest of Statistics for more details on the revision of HSIC.

The value indices of retail sales and restaurant receipts measure the changes in value terms, while the volume indices of retail sales and restaurant receipts are derived from the value indices by adjusting for price changes.  The series of value and volume indices of retail sales and restaurant receipts have been re-referenced, taking October 2014 to September 2015 as the new reference period.  An enhanced technical feature in the re-referenced series is that the volume indices of retail sales and restaurant receipts are compiled based on the chain-linking approach as stipulated in the International Recommendations for Distributive Trade Statistics 2008 and System of National Accounts 2008 adopted by the United Nations Statistics Division.  Users may obtain detailed information about the re-referencing exercise here.
 

References on Concepts and Methods

Title
Release Date

Glossary of Terms

Term
Definition
Changes in stocks
For (i) the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services, and (ii) the Industry Section of information and communications, professional and business services :
Changes in stocks
= book value of stocks at end of reporting period – book value of stocks at beginning of reporting period
Compensation of employees
Compensation of employees
= wages and salaries (including share-based payments granted to employees) + payments in kind and employer's social security expenditure (including contributions to Mandatory Provident Fund schemes, messing, medical expenses and premiums for employees' compensation insurance)
Establishment
An establishment is defined as an economic unit (i.e. a unit engaged in the production of goods or services) which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted and in this case, the reporting unit is treated as an establishment.
Gross surplus
(i) For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
Gross surplus
= sales and other receipts – compensation of employees – operating expenses – total value of purchases of goods for sale + changes in stocks
Number of persons engaged
Number of persons engaged
= number of working proprietors, active partners and unpaid family workers + number of employees
Operating expenses
(i) For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :

Operating expenses = rent, rates and government rent for land and buildings + property/building management fees + interest payments, bill interest and loan interest + purchase of computer hardware and peripherals for own use + purchase of pre-packaged/customised computer programs, software and databases for own use + repairs and maintenance of IT equipment + IT related consultancy fees + expenses on other IT related services + expenses on repairs and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + expenses on commissions and contract-out + royalty payments for the use of patents, trademarks, copyrights and franchises + commissions/services charges paid to electronic money card and credit card issuers + charges paid to banks, deposit-taking companies and other financial institutions + transport and travelling expenses + postage and courier service expenses + newspaper, magazines and telecommunications expenses + advertisement or promotion, sample and exhibition + entertainment expenses + accounting, audit, legal fees + other professional and business services fees + business management fee/management fee and administration charges paid to related companies + expenses in maintaining representative offices outside Hong Kong + insurance premiums + staff training expenses + storage fees + rentals for machinery, equipment and vehicles + cleaning and pest control services expenses + Laundry and dry-cleaning services expenses (for accommodation and food services) + other operating expenses (including declaration, licence and business registration fees, subscription and membership fees and recruitment expenses)

Operating expenses do not include provision, loss on disposal of fixed assets, bad debts, fine, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and tax payments.
Sales and other receipts
For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
(i) Sales and other receipts (for import/export, wholesale and retail trades)
= value of sales of goods + receipts for services rendered + rental income from letting/subletting land and premises + income from other sources

(ii) Sales and other receipts (for accommodation and food services)
= sales of food, beverages and other goods + room sales and receipts for services rendered + rental income from letting/subletting land and premises + income from other sources
Total value of purchases of goods for sale
For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
(i) Total value of purchases of goods for sale (for import/export, wholesale and retail trades) excludes purchases of goods for offshore trading

(ii) Total value of purchases of goods for sale (for accommodation and food services)
= value of purchases of food + value of purchases of beverages + value of purchases of other goods for sale.
Value added
For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
Value added
= sales and other receipts – income from other sources – total value of purchases of goods for sale – operating expenses + interest payments + changes in stocks
Value indices
Retail sales and restaurant receipts :
Value indices measure the changes in value terms
Volume indices
Retail sales and restaurant receipts :
Volume indices are derived from the value indices by adjusting for price changes.