Monthly & Annual Retail Trade

Summary of Changes

Annual sales estimates for 2006 are revised due to the availability of nonemployer sales data from administrative records provided by other Federal agencies. Starting with survey year 2006, the Annual Retail Trade Survey (ARTS), including Accommodations and Food Services, collects total operating expenses for covered establishments.

Starting with survey year 2007 and every fifth year thereafter, this survey collects supplemental data on detailed types of operating expenses, resulting in tables with estimates of the data and associated sampling error. Data on detailed operating expenses released with the 2002 Business Expenses Survey (2002 BES) may not be comparable to the 2007 Business Expenses Supplement (2007 BES) because the 2002 detailed expense estimates include data from nonemployers, but the estimates for 2007 do not. Also, NAICS publication levels changed slightly from 2002 to 2007

The following inquiries included in the 2002 BES were discontinued or modified for 2007: Expensed computer-related supplies; Cost of purchased printing services; Cost of purchased legal services; Cost of purchased accounting services; Cost of purchased management consulting services; Purchased computer-related communications services; Purchased telephone, fax, and other communications services; Cost of custom-coded original software; Cost of system support design and services; Cost of data processing and other purchased computer services; and Cost of insurance.

The following new inquiries were added to the 2007 BES: Expensed purchases of software; Commission expense; and Purchased professional and technical services.

For the first time, respondents in the 2007 BES were given the opportunity to report electronically using the application CensusTaker, which has been available to annual survey respondents.

Revisions to Previously Published Estimates

Sales estimates for 2005 and subsequent years are adjusted to the 2002 Economic Census by linking the estimates from the current sample to the published census-adjusted estimates from the prior sample. Prior to adjustment, historical corrections are made to current sample data back to 2004. For a given detailed industry based on the 2002 North American Industry Classification System (NAICS), the linking is performed by multiplying the sample-based sales estimate by a ratio. The numerator and denominator of the ratio are as follows:

§   The numerator is the 2004 published census-adjusted sales estimate for the industry from the prior sample

§   The denominator is the 2004 sales estimate for the industry from the current sample.

The expenses estimates for 2006 and subsequent years are adjusted by applying the ratio described above for each detailed industry. A method similar to the one for adjusting sales is used to link the end-of-year inventories and purchases estimates. First, the ratio described above is applied to the sample-based estimates for the given detailed industry for 2004 and subsequent years, resulting in adjusted estimates for these years. Then, the published adjusted estimates for 1998 through 2004 from the prior sample are input to the benchmarking program. Using this program, the estimates for 1999 through 2004 are revised in a manner that:

§   Uses the published adjusted estimate for 1998 from the prior sample as a constraint, resulting in no revision to the published 1998 estimate.

§   Uses the adjusted estimate for 2004 from the current sample as a constraint.

§   Minimizes the sum of squared differences between the year-to-year changes of the input and revised estimates for 1999 through 2004.

Estimates for e-commerce sales are revised in a manner similar to the method used to adjust inventories and purchases.

Estimates at 2-, 3-, 4-, and 5-digit NAICS levels are computed by summing the adjusted estimates for the appropriate detailed industries comprising the aggregate. Accounts receivable estimates for 2004 and subsequent years are produced directly from the current sample and are not adjusted.