African trade industry An overview 2012 2015 Dr Pali Lehohla - - PowerPoint PPT Presentation
The South African trade industry An overview 2012 2015 Dr Pali Lehohla Stats SA 26 October 2017 Detailed data for five divisions in trade are now available Motor trade Retail Accommodation Large sample surveys providing data for
2012 – 2015 Dr Pali Lehohla Stats SA 26 October 2017
Retail Wholesale
Demographic dividend
Motor trade Accommodation Food & beverages
Detailed data for five divisions in trade are now available
providing data for 2015
Trade industry
The trade industry is responsible for 15% of SA economic production Shares of nominal GDP 2016
14,2% 15,0%
12,0% 12,5% 13,0% 13,5% 14,0% 14,5% 15,0% 15,5% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
The trade industry contribution to GDP has grown slightly over the years
The trade industry generated R3,17 trillion in income during 2015
1,13 1,33 1,49 1,56 2,39 3,17 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50
2005 2006 2007 2009 2012 2015
R trillion
That’s just over R100 000 generated per second!
Wholesale 52% Retail 26% Motor trade 19% Food & beverages 2% Accommodation 1%
Wholesale trade generated just over half of total income in 2015
Percentages have been rounded and may not sum to 100% Only includes formal business activities
R2 106 025m (66%) R392 234m (12%) R674 071m (21%) 500 000 1 000 000 1 500 000 2 000 000 2 500 000
Large enterprises Medium enterprises Small and micro enterprises
R million
Large enterprises generated two-thirds of the R3,17 trillion in income
2015
Building material & hardware 32% Machinery & equipment 22% Food & beverages 19% Other 27%
What are the most popular sources of income in each industry (2015)? Wholesale
Food & beverages 42% Clothing 16% Medical & cosmetics 11% Other 32%
Retail
New vehicles 33% Fuel 29% Parts 18% Used vehicles 17% Other 4%
Motor*
Food and snacks 81% Non-alcoholic drinks 9% Wines 5% Other 5%
Food & beverages Accommodation
*New and used vehicles includes both retail and wholesale sales
Cape Town 14% Johannesburg 14% Tshwane 9%
eThekwini 7%
Other districts 51%
Accommodation: almost half of available rooms* are in five cities
Eku- Rhuleni 4% *The unit of accommodation available to be charged out to guests; for example, a powered site in a caravan park or a room in a hotel.
Motor trade: vehicle sales* – number of units sold in 2012 and 2015
*Only includes retail sales; excludes wholesale sales of vehicles Total: 412 819 Total: 384 860 Total: 412 964 Total: 378 499
What do concentration ratios tell us?
Proportion of income earned by the top 10 largest enterprises
Retail and accommodation are dominated by a few large companies
15% 15% 21% 38% 42%
0% 20% 40% 60% 80% 100% Food & beverages Wholesale Motor Accommodation Retail
The motor trade industry has become less concentrated over time
Proportion of income earned by the top 10 largest enterprises
33% 26% 23% 21%
0% 20% 40% 60% 80% 100%
2006 2009 2012 2015
And so has accommodation
Proportion of income earned by the top 10 largest enterprises
55% 50% 44% 38%
0% 20% 40% 60% 80% 100%
2007 2009 2012 2015
Concentration in retail trade, however, has increased over time
Proportion of income earned by the top 10 largest enterprises
39% 40% 41% 42%
0% 20% 40% 60% 80% 100%
2005 2009 2012 2015
A total of R3,09 trillion was spent by the trade industries in 2015
Wholesale 52% Retail 26% Motor 19% Food & beverages 2% Accommodation 1%
Total expenditure R3,09 trillion
Percentages have been rounded and may not sum to 100%
What did each division spend money on?
17% 50% 85% 75% 83% 24% 20% 7% 10% 6% 58% 30% 9% 16% 11%
0% 20% 40% 60% 80% 100% Accommodation Food & beverages Motor Retail Wholesale
Purchases Employment costs Other expenditure
The profit margin rose in 2015 to 2,6%
1,8% 1,9% 1,9% 1,6% 2,6% 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 2011 2012 2013 2014 2015 Profit margin
Profit margin for the entire trade industry
(net loss/profit after tax as a percentage of turnover)
Casino income contributed to accommodation’s high profit margin
Profit margin (net loss/profit after tax)
2,0% 2,0% 2,5% 2,6% 2,9% 9,9%
0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% Motor trade Food and beverages Wholesale trade All trades Retail trade Accommodation
In fact, casinos contribute just over a third of total accommodation income Accommodation 59% Casino facilities 34% Functions 4% Other services 3%
2015
Photo: http://www.mediaclub.co.za, Chris Kirchhoff
The trade industry is the third largest employer in the formal business sector
Community services 27% Business services 23%
Manufacturing 12% Other 16%
Source: Quarterly Employment Statistics (QES), June 2017 (Table B)
The trade industry employed 1,9 million people in 2015
Number of jobs
1 2
Retail – 44% (812 104 people)
3 4 5
Retail is the largest employer in the trade industry (2015)
Wholesale – 26% (490 037 people) Motor – 15% (270 440 people) Food & beverages – 9% (174 601 people) Accommodation – 6% (109 196 people)
1 2 3 4 5
1,9 million people
28% 34% 56% 57% 59% 47% 72% 66% 44% 43% 41% 53% 0% 20% 40% 60% 80% 100%
Motor Wholesale Accommodation Retail Food & beverages All trades Female Male
Female employees outnumber male employees in three divisions
2015
But employees in those three divisions earn the lowest salaries
Average income for all employees
R 174 135 R 126 151 R 84 380 R 87 852 R 47 037 R 202 823 R 146 905 R 93 632 R 91 716 R 60 761
R 0 R 50 000 R 100 000 R 150 000 R 200 000 R 250 000
Wholesale Motor Retail Accommodation Food & beverages
2012 2015
Income vs employment (2015)
52% 26% 19% 2% 1% 26% 44% 15% 9% 6% 0% 10% 20% 30% 40% 50% 60% Wholesale trade Retail trade industry Motor trade industry Food and beverages Accommodation Income Employment
Income vs employment: large enterprises (2015)
70,3% 70,1% 67,0% 61,7% 41,3% 50,6% 66,0% 40,3% 40,0% 39,3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Accommodation Retail Wholesale Motor Food & beverages Income Employment
Wholesale 39% Retail 32% Motor 15% Food & beverages 4% Accommodation 11%
Wholesale spend the most on acquiring new assets (2015)