44-45 Retail Trade
44-45 Retail Trade
The Sector as a Whole
The Retail Trade sector comprises establishments 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 nonstore retailers.
1. 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 business and institutional clients. These include establishments, such as office supply stores, computer and software stores, building materials dealers, plumbing supply stores, and electrical supply stores. Catalog showrooms, gasoline services stations, automotive dealers, and mobile home dealers are treated as store retailers.
In addition to retailing 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, electronic and appliance stores, and musical instrument and supply stores often provide repair services. As a general rule, establishments engaged in retailing merchandise and providing after-sales services are classified in this sector.
The first eleven subsectors of retail trade are store retailers. The establishments are grouped into industries and industry groups typically based on one or more of the following criteria:
(a) The merchandise line or lines carried by the store; for example, specialty stores are distinguished from general-line stores.
(b) The usual trade designation of the establishments. This criterion applies in cases where a store type is well recognized by the industry and the public, but difficult to define strictly in terms of commodity lines carried; for example, pharmacies, hardware stores, and department stores.
(c) Capital requirements in terms of display equipment; for example, food stores have equipment requirements not found in other retail industries.
(d) Human resource requirements in terms of expertise; for example, the staff of an automobile dealer requires knowledge in financing, registering, and licensing issues that are not necessary in other retail industries.
2. Nonstore retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. The establishments of this subsector reach customers and market merchandise with methods, such as the broadcasting of "infomercials," the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls (street vendors, except food), and distribution through vending machines. Establishments engaged in the direct sale (nonstore) of products, such as home heating oil dealers and home delivery newspaper routes are included here.
The buying of goods for resale is a characteristic of retail trade establishments that particularly distinguishes them from establishments in the agriculture, manufacturing, and construction industries. For example, farms that sell their products at or from the point of production are not classified in retail, but rather in agriculture. Similarly, establishments that both manufacture and sell their products to the general public are not classified in retail, but rather in manufacturing. However, establishments that engage in processing activities incidental to retailing are classified in retail. This includes establishments, such as optical goods stores that do in-store grinding of lenses, and meat and seafood markets.
Wholesalers also engage in the buying of goods for resale, but they are not usually organized to serve the general public. They typically operate from a warehouse or office and neither the design nor the location of these premises is intended to solicit a high volume of walk-in traffic. Wholesalers supply institutional, industrial, wholesale, and retail clients; their operations are, therefore, generally organized to purchase, sell, and deliver merchandise in larger quantities. However, dealers of durable nonconsumer goods, such as farm machinery and heavy duty trucks, are included in wholesale trade even if they often sell these products in single units.
41 Motor Vehicle and Parts Dealers
441 Motor Vehicle and Parts Dealers
Industries in the Motor Vehicle and Parts Dealers subsector retail motor vehicles and parts from
fixed point-of-sale locations. Establishments in this subsector typically operate from a showroom
and/or an open lot where the vehicles are on display. The display of vehicles and the related
parts require little by way of display equipment. The personnel generally include both the sales
and sales support staff familiar with the requirements for registering and financing a vehicle as
well as a staff of parts experts and mechanics trained to provide repair and maintenance services
for the vehicles. Specific industries have been included in this subsector to identify the type
of vehicle being retailed.
Sales of capital or durable nonconsumer goods, such as medium and heavy-duty trucks, are always
included in wholesale trade. These goods are virtually never sold through retail methods.
4411 Automobile Dealers
This industry group comprises establishments primarily engaged in retailing new and used
automobiles and light trucks, such as sport utility vehicles, and passenger and cargo vans.
44111 New Car Dealers
See industry description for 441110 below.
441110 New Car Dealers
This industry comprises establishments primarily engaged in retailing new automobiles and light
trucks, such as sport utility vehicles, and passenger and cargo vans, or retailing these new
vehicles in combination with activities, such as repair services, retailing used cars, and
selling replacement parts and accessories.
Cross-References. Establishments primarily engaged in--
- Retailing used automobiles and light trucks without retailing new automobiles and
light trucks--are classified in Industry 441120, Used Car Dealers.
- Providing automotive repair services without retailing new automotive vehicles--are
classified in Industry Group 8111, Automotive Repair and Maintenance.
4411 Automobile Dealers
This industry group comprises establishments primarily engaged in retailing new and used
automobiles and light trucks, such as sport utility vehicles, and passenger and cargo vans.
44111 New Car Dealers
See industry description for 441110 below.
441110 New Car Dealers
This industry comprises establishments primarily engaged in retailing new automobiles and light
trucks, such as sport utility vehicles, and passenger and cargo vans, or retailing these new
vehicles in combination with activities, such as repair services, retailing used cars, and
selling replacement parts and accessories.
Cross-References. Establishments primarily engaged in--