The Annual Retail Trade Survey provides the only continuing official measure of annual sales, purchases, end-of-year inventories, sales/inventory ratios, and accounts receivable balances. The sales and inventories are used as benchmarks for the monthly series. These data, along with purchases, are also used by the Bureau of Economic Analysis in the computation of the GDP. The accounts receivable balances are used by the Federal Reserve Board. Responses are a sample of retail establishments in the U.S.
In attempts to clarify reporting in the Annual Retail Trade Survey (ARTS) the Census Bureau has decided to make the two forms SA-721A and SA-721E into four forms to better reflect the NAICS codes they represent. The revised SA-721A and SA-721E will continue to request the same information under a new title ÂAnnual Accommodation Report Hotels, RV Parks, Campgrounds and other Accommodations. The newly created SA-722A and SA-722E forms will request the same information as is collected on the SA-721A and SA-721E but will be titled ÂAnnual Food Services Report Restaurants, Food Service Contractors and Drinking Places. Both of these new forms have Includes and Excludes that are more specific to the industry they represent.
The Census Bureau also plans to add one data item  total operating expenses  to all the ARTS forms, SA-44, SA-44A, SA-44C, SA-44E, SA-44N, SA-44S, SA-45, SA-45C, SA-721A, SA-721E, SA-722A, and SA-722E. This action is necessary because of the pending integration of the five-year Business Expense Survey (BES) with the ARTS. Beginning with 2007 and once every five years after that, ARTS will also collect up to 25 detailed operating expense items. This data is used by the Bureau of Economic Analysis (BEA) to benchmark input-output (I-O) accounts and the annual industry accounts (includes Gross Domestic Product (GDP)-by-industry accounts and annual I-O accounts). Collecting the total operating expenses every year beginning in 2006 will allow us to get the sales and expense data in-line and on a comparable basis since they will be analyzed together. Then, once every five years when we collect all of the operating expense detail we will have all of the data from previous years to help us keep the totals consistent. In the past when operating expense data have been collected only once every five years companies have tended to over-report their operating expenses and also to include expenses that were not aligned with the sales they reported. Having total operating expenses will also allow us to present an additional measure on the profitability of retailers. Since we already calculate gross margin values we can subtract the operating expenses and calculate profits by industry or percentage of profit based on sales.
This request is to only add the total operating expenses data item. For the 2007 ARTS, forms will be redesigned either with the operating expense detail included as part of the ARTS forms or as a supplement to the existing forms. A request for OMB clearance for the combined forms or for the supplement will be submitted at that time depending on which option we choose.
There are approximately 21,570 retail respondents who report once a year. The revised estimated burden per response is about 34 minutes for all forms (previously about 31 minutes). Because of the availability of the data with other financial data already collected, it is expected that only three additional minutes will be necessary for retail stores to complete this one additional item. The increase in annual reporting burden for retail respondents is 1,078 hours.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form SA-44 Annual Retail Trade Report
Annual Retail Trade Report