Retail Trade

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 non-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 supply stores, computer and software stores, building materials dealers, plumbing supply stores, and electrical supply stores. Catalog showrooms, gasoline service 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-sale services, such as repair and installation.

Non-store retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. The establishments of this sector 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 like street vendors (excluding food vendors), and distribution through vending machines. Establishments engaged in the direct sale of products, such as home heating oil dealers and home delivery newspaper routes, are included.

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. Establishments that both manufacture and sell their products to the general public are classified in manufacturing instead of retail. However, establishments that engage in processing activities incidental to retailing are classified in retail. This includes establishments like meat and seafood markets and optical goods stores that do in-store grinding of lenses.