Variant of the North American Industry Classification System (NAICS) 2022 Version 1.0 for Labour force

Variant of the North American Industry Classification System (NAICS) 2022 Version 1.0 for Labour force
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8.2.1 - Wholesale and retail trade

This classification variant comprises establishments coded to 'Wholesale trade' (NAICS 41) and to 'Retail trade' (NAICS 44-45).

Wholesale trade comprises establishments primarily engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

The wholesaling process is an intermediate step in the distribution of goods. Many wholesalers are organized to sell merchandise in large quantities to retailers, and business and institutional clients. However, some wholesalers, in particular those that supply non-consumer capital goods, sell merchandise in single units to final users.

Sales of capital goods or durable non-consumer goods used in the production of goods and services, such as farm machinery and equipment, heavy duty trucks, and industrial machinery, are always included in wholesale trade.

Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up are either vendor-initiated or client initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers.

This sector comprises two main types of wholesalers: merchant wholesalers that sell goods on own account and wholesale electronic markets, agents, and brokers that arrange sales and purchases for others generally for a commission or fee.

Merchants wholesalers

Merchant wholesalers buy and sell merchandise on their own account, that is, they take title to the goods they sell. They generally operate from warehouse or office locations and they may ship from their own inventory or arrange for the shipment of goods directly from the supplier to the client. In addition to the sale of goods, they may provide, or arrange for the provision of, logistics, marketing and support services, such as packaging and labelling, inventory management, shipping, handling of warranty claims, in-store or co-op promotions, and product training.

Merchants wholesalers are known by a variety of trade designations depending on their relationship with suppliers or customers, or the distribution method they employ. Examples include wholesale merchants, wholesale distributors, drop shippers, rack-jobbers, import-export merchants, and banner wholesalers.

Included as merchant wholesalers are sales branches or offices (but not retail stores) maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products.

Merchant wholesalers also include factoryless good producers (FGPs) that completely outsource the transformation process but do not own the input materials. These units are in fact buying the completed good from the producer with the intention to resell it. These units may design the goods being manufactured, and may have some say in the manufacturing process. On the other hand, FGPs that completely outsource the transformation process but own the inputs are classified to the manufacturing sector.

The first eight subsectors of wholesale trade comprise merchant wholesalers. The grouping of these establishments into industry groups and industries is based on the merchandise line or lines supplied by the wholesaler.

Business-to business electronic markets, and agents and brokers

Business-to business electronic markets, and wholesale trade agents and brokers arrange for the purchase or sale of goods owned by others, generally for a commission or fee. They are known as business-to-business (B2B) electronic markets, wholesale trade agents and brokers, commission merchants, import-export agents and brokers, auction companies, and manufacturer's representatives. These establishments operate from offices and generally do not own or handle the goods they sell.

Retail trade comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

The retailing process is the final step in the distribution of merchandise; retailers are therefore organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers, store and non-store retailers. Their main characteristics are described below.

Store retailers

Store retailers operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers. In general, retail stores have extensive displays of merchandise and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve businesses and institutions. These include establishments such as office supplies stores, computer and software stores, gasoline stations, building material dealers, plumbing supplies stores and electrical supplies stores.

In addition to selling merchandise, some types of store retailers are also engaged in the provision of after-sales services, such as repair and installation. For example, new automobile dealers, electronics and appliance stores and musical instrument and supplies stores often provide repair services, while floor covering stores and window treatment stores often provide installation services. As a general rule, establishments engaged in retailing merchandise and providing after sales services are classified in this sector.

Catalogue sales showrooms, gasoline service stations, and mobile home dealers are treated as store retailers.

Non-store retailers

Non-store retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. They reach customers and market merchandise with methods such as, the broadcasting of infomercials, the broadcasting and publishing of direct-response advertising, the publishing of traditional and electronic catalogues, door-to-door solicitation, in-home demonstration, temporary displaying of merchandise (stalls) and distribution by vending machines.

The methods of transaction and delivery of merchandise vary by type of non-store retailers. For example, non-store retailers that reach their customers using information technologies can receive payment at the time of purchase or at the time of delivery, and the delivery of the merchandise may be done by the retailer or by a third party, such as the post office or a courier. In contrast, non-store retailers that reach their customers by door-to-door solicitation, in-home demonstration, temporary displaying of merchandise (stalls) and vending machines typically receive payment and deliver the merchandise to the customer at the time of the purchase.

Non-store retailers also include establishments engaged in the home delivery of products such as home heating oil dealers and newspaper delivery companies.

44-45 - Retail trade

This sector comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

The retailing process is the final step in the distribution of merchandise; retailers are therefore organized to sell merchandise in small quantities to the general public.

Internet retail, direct selling, and mail-order retail are not separately classified from traditional in-store (also known as "brick and mortar") retail. Units that engage in retailing by any of these methods are classified based on the type of good sold. Meanwhile, vending machine operators are grouped with convenience retailers.

In addition to selling merchandise, some types of retailers are also engaged in the provision of after-sales services, such as repair and installation. For example, new automobile dealers, electronic and appliance retailers and musical instrument and supplies retailers often provide repair services, while floor covering stores and window treatment retailers often provide installation services. As a general rule, establishments engaged in retailing merchandise and providing after sales services are classified in this sector.

441 - Motor vehicle and parts dealersUS

This subsector comprises establishments primarily engaged in retailing motor vehicles and providing complementary services, and retailing motor vehicle parts and accessories. The establishments of this subsector are generally specialized in the retailing of particular types of vehicles or in the retailing of particular types of parts and accessories.

  • Exclusion(s)

    • heavy-duty truck sales (See 41 Wholesale trade)

444 - Building material and garden equipment and supplies dealersUS

This subsector comprises establishments primarily engaged in retailing a specialized or general line of building and home improvement materials, lawn and garden equipment and supplies, outdoor power equipment, and nursery and garden products.

  • Exclusion(s)

    • retailing used building and home improvement materials, and lawn, garden and outdoor power equipment (See 459510 Used merchandise retailers)

445 - Food and beverage retailersUS

This subsector comprises establishments primarily engaged in retailing a general or specialized line of food or beverage products.

449 - Furniture, home furnishings, electronics and appliances retailersUS

This subsector comprises establishments primarily engaged in retailing new furniture, home furnishings, household appliances, home audio and video equipment, audio and video recordings, cameras, computers and related goods. Many of these establishments offer interior decorating services in addition to the sale of products. These establishments may also retail replacement parts and provide repair services.

  • Exclusion(s)

    • retailing used furniture and home furnishings (See 459510 Used merchandise retailers)
    • retailing used household appliances, home audio and video equipment, cameras, computers and related goods (See 459510 Used merchandise retailers)

455 - General merchandise retailersUS

This subsector comprises establishments primarily engaged in retailing a general line of merchandise that may, or may not, include a general line of grocery items.

  • Exclusion(s)

    • retailing a general line of building and home improvement materials (See 444110 Home centres)
    • retailing a general line of grocery items (See 445110 Supermarkets and other grocery retailers (except Convenience retailers))
    • retailing a general line of used goods (See 459510 Used merchandise retailers)

456 - Health and personal care retailersUS

This subsector comprises establishments primarily engaged in retailing health and personal care products. Drug stores and pharmacies, cosmetics, beauty supplies and perfume retailers, optical goods retailers food (health) supplement retailers and health appliance retailers are included.

457 - Gasoline stations and fuel vendorsUS

This subsector comprises establishments primarily engaged in retailing motor fuels, whether or not the gasoline station is operated in conjunction with a convenience store, repair garage, restaurant or other type of operation. Establishments that operate gasoline stations on behalf of their owners and receive a commission on the sale of fuels are also included. It also comprises establishments primarily engaged in retailing heating oil, liquefied petroleum gas (LPG) and other fuels via direct selling.

458 - Clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailersUS

This subsector comprises establishments primarily engaged in retailing clothing, clothing accessories, shoes, jewelry, luggage and leather goods.

  • Exclusion(s)

    • retailing used clothing and clothing accessories (See 459510 Used merchandise retailers)

459 - Sporting goods, hobby, musical instrument, book, and miscellaneous retailersUS

This subsector comprises establishments engaged in retailing  sporting goods, games and toys, sewing supplies, fabrics, patterns, yarns and other needlework accessories, musical instruments, and books and other reading materials. It is also engaged in retailing a specialized line of merchandise in other types of specialty stores. Florists, office supplies stores, stationery stores, gift, novelty and souvenir stores, used merchandise stores, pet and pet supplies stores, art dealers and manufactured (mobile) home dealers are included.

  • Exclusion(s)

    • retailing new audio and video recordings (See 449214 Audio and video recording retailers)
    • retailing used sporting goods, hobby goods, books, musical instruments, and audio and video recordings (See 459510 Used merchandise retailers)
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