Sector Description
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 office supply stores, computer and software stores, building materials dealers, plumbing supply stores, and electrical supply stores. Catalog showrooms, gasoline 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, electronics and appliance stores, and musical instrument and supplies 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 merchandise 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 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.
IBISWorld Industry Research Report
Retail Trade in the US (44-45)
Revenue 2025
$7414.7bn
Growth 2025
0.23%
Key Trends
Retail operators have benefited from increases in per capita disposable income
Disposable income and consumer spending growth have driven the sector's success
Consumers with high-incomes will continue to opt for high-end merchandise
Products and Services
NAICS Hierarchy 44-45 - Retail Trade
NAICS Code 44-45 - Retail Trade sits in the 2-digit Retail Trade sector. NAICS codes can be 2- to 6-digits and the further along the hierarchy, the more detailed and specific the category will be. Learn more about the structure of NAICS codes
2 Digits: 44-45
Sector Title: Retail Trade
3 Digits 4 Digits 5 Digits 6 Digits
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4411 Automobile Dealers
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44111 New Car Dealers
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44112 Used Car Dealers
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4412 Other Motor Vehicle Dealers
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44121 Recreational Vehicle Dealers
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44122 Motorcycle, Boat, and Other Motor Vehicle Dealers
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4413 Automotive Parts, Accessories, and Tire Stores
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44131 Automotive Parts and Accessories Stores
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44132 Tire Dealers
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4421 Furniture Stores
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44211 Furniture Stores
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4422 Home Furnishings Stores
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44221 Floor Covering Stores
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44229 Other Home Furnishings Stores
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4431 Electronics and Appliance Stores
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44314 Electronics and Appliance Stores
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4441 Building Material and Supplies Dealers
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44411 Home Centers
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44412 Paint and Wallpaper Stores
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44413 Hardware Stores
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44419 Other Building Material Dealers
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4442 Lawn and Garden Equipment and Supplies Stores
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44421 Outdoor Power Equipment Stores
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44422 Nursery, Garden Center, and Farm Supply Stores
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4451 Grocery Stores
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44511 Supermarkets and Other Grocery (except Convenience) Stores
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44512 Convenience Stores
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4452 Specialty Food Stores
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44521 Meat Markets
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44522 Fish and Seafood Markets
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44523 Fruit and Vegetable Markets
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44529 Other Specialty Food Stores
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4453 Beer, Wine, and Liquor Stores
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44531 Beer, Wine, and Liquor Stores
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4461 Health and Personal Care Stores
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44611 Pharmacies and Drug Stores
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44612 Cosmetics, Beauty Supplies, and Perfume Stores
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44613 Optical Goods Stores
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44619 Other Health and Personal Care Stores
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4471 Gasoline Stations
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44711 Gasoline Stations with Convenience Stores
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44719 Other Gasoline Stations
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4481 Clothing Stores
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44811 Men's Clothing Stores
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44812 Women's Clothing Stores
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44813 Children's and Infants' Clothing Stores
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44814 Family Clothing Stores
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44815 Clothing Accessories Stores
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44819 Other Clothing Stores
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4482 Shoe Stores
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44821 Shoe Stores
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4483 Jewelry, Luggage, and Leather Goods Stores
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44831 Jewelry Stores
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44832 Luggage and Leather Goods Stores
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NAICS Resources
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