More Retail Trade Indexes Added to the Producer Price Index
Price indexes for additional retail trade industries were added to the Producer Price Index (PPI) reflecting an ongoing effort to expand PPI coverage of the U.S. economy into areas other than mining and manufacturing. Retail trade indexes for food stores, new car dealers, and miscellaneous retail establishments were added to the PPI in June 2000 and December 2000. Indexes for Recreational Vehicle Dealers and Boat Dealers were introduced in December 2001 and as a result of changes in the 2002 NAICS industry definitions, new indexes were introduced for Gasoline Stations with Convenience Stores and Other Gasoline Stations in January 2004.
These newest PPIs, listed below by North American Industry Classification System (NAICS) code, appear in table 5 of the PPI Detailed Report and are available online through this website.
Establishments in the retail sector are engaged primarily in purchasing goods for resale to consumers. Given that little, if any, transformation of these goods takes place, the PPI views retailers as suppliers of services (rather than goods). This implies that the output of a retail trade establishment can be estimated by the difference between the retail selling price of a good and the acquisition price for that same item. (Any discounts from vendors to the retailers and any discounts offered from retailers to consumers are captured.) The resulting gross margin prices reflect the value added by establishments for services such as marketing, storing, displaying goods in convenient locations, and making the goods easily available for customers to purchase.
Data provided to the PPI by the U.S. Census Bureau weight retail trade at the industry level. Item weights used in the PPI retail trade cells reflect margin weights for margin priced items and retail weights for retail priced items, in those rare cases that retail priced items are tracked. For example, an oil change that is done on the premises would be tracked on a retail price rather than on a gross-margin-price basis.
The PPI classifies establishments in the mining and manufacturing sectors based on their major revenue-generating activity. However, retail trade establishments are grouped using their usual trade designation. For example, many convenience stores sell groceries, prepared foods, and some also sell gasoline. Often, the major revenue-generating activity for those gasoline stations with convenience stores is selling gasoline. However, even in those cases where goods other than gasoline represent a plurality of revenue, those gasoline stations with convenience stores are classified in NAICS 447110 because of their usual trade designation.
NAICS 441210 Recreational Vehicle Dealers
NAICS 441210 comprises establishments primarily engaged in retailing new and/or used recreational vehicles commonly referred to as RVs or retailing these new vehicles in combination with activities, such as repair services and selling replacement parts and accessories. Establishments retailing new or used boat trailers and utility trailers are classified in NAICS 441220, Motorcycle, boat, and other motor vehicle dealers. Establishments retailing manufactured homes (i.e. mobile homes), parts and equipment are classified in NAICS 453930, Manufactured (mobile) home dealers.
Services primary to this industry include the retail sale of any item from an RV dealer, as long as the dealers usual trade designation fell under NAICS 441210. Services rendered incidental to the retail sale of any item, such as repair services, are also categorized as primary services. For new RVs, parts, and accessories, retail prices less the acquisition costsgross margin pricesare collected based on the item transacted (for example, one rearview mirror). Tracking gross margin prices for used RVs required some procedural modifications, since each used RV is qualitatively unique. The likelihood of a particular used RV being transacted on a regular basis is not very great. Therefore, data are collected for used RVs based on average gross margin for the entire category.
NAICS 441222 Boat Dealers
This industry comprises establishments primarily engaged in (1) retailing new and/or used boats or retailing new boats in combination with activities, such as repair services and selling replacement parts and accessories, and/or (2) retailing new and/or used outboard motors, boat trailers, marine supplies, parts, and accessories
The primary services index tracks either the difference between retail prices for goods and their acquisition prices or the average gross margin for a relatively homogeneous group of goods. Prices for repair services are captured on a fee for service basis, and are included in the primary services designation. The other receipts category covers items such as financing and warranties provided by dealers.
Tracking gross margin prices for used boats encounters the same difficulty as used RVs in NAICS 441210. As a result, average gross margin prices are also collected to price the entire category for used boats.
NAICS 447110 Gasoline Stations with Convenience Stores
This industry comprises establishments engaged in retailing automotive fuels (e.g. diesel fuel, gasohol, gasoline) in combination with convenience store or food mart items. These establishments can either be in a convenience store (i.e., food mart) setting or a gasoline station setting. These establishments may also provide automotive repair services.
The primary services designation for this industry tracks the retail sale of any item sold by a gasoline station with a convenience store. For the most part, primary services are measured by tracking gross margin prices. There are, however, a minority of items primary to NAICS 447110 that require the capture of only a retail price. Fountain beverages and prepared foods are examples of items primary to NAICS 447110 that require only the capture of a retail price. Margin prices are not captured for these items because they are further processed by the station before sale. The other receipts category includes transactions such as warranties, car washes, and towing services.
NAICS 447190 Other Gasoline Stations
This industry comprises establishments known as gasoline stations (except those with convenience stores) primarily engaged in one of the following: (1) retailing automotive fuels (e.g., diesel fuel, gasohol, gasoline) or (2) retailing those fuels in combination with activities, such as providing repair services; selling automotive oils, replacements parts, and accessories; and/or providing food services. Establishments commonly known as truck stops are included in this industry.
Last Modified Date: December 13, 2012