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Definition
Retail Trade
(NAICS 44-45)

The industries on this site are classified according to the North American Industry Classification System (NAICS) of 2002. Statistics Canada maintains this standard classification which has superseded the 1980 Standard Industrial Classification (SIC) previously used.

This section outlines NAICS Canada 2002 with respect to the Retail Trade sector. It defines the activities specifically excluded, as well as its position in the NAICS hierarchy.

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Definition of the Sector

The retail trade 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. This sector comprises two main types of retailers, that is, 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 business and institutional clients. 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, electronic 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. 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 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.

  The non-store retailers subsector also includes establishments engaged in the home delivery of products. This includes home heating oil dealers and newspaper delivery companies.

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Exclusions

Establishments primarily engaged in the following activities are excluded:

• renting and leasing transportation equipment without operator (NAICS 532, Rental and Leasing Services)

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Position in NAICS Hierarchy