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Retail Trade
The Retail Trade industry sector includes establishments engaged in retailing merchandise, generally without changing the merchandise, and providing services incidental to the sale of merchandise.
The retailing process is the final step in the distribution of merchandise. Retailers are organized to sell merchandise in small quantities to the general public. The retail trade sector includes two main types of retailers: store and nonstore retailers.
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,
- Electrical supply stores,
- Catalog showrooms,
- Gasoline services stations,
- Automotive dealers, and
- Mobile home dealers.
In addition to retailing merchandise, some types of store retailers provide after-sales services, such as repair and installation. For instance, 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:
- The merchandise line or lines carried by the store (specialty stores are distinguished from general-line stores).
- The usual trade designation of the establishments. This 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 (pharmacies, hardware stores, and department stores).
- Capital requirements in terms of display equipment (food stores have equipment requirements not found in other retail industries).
- Human resource requirements in terms of expertise (the staff of an automobile dealer requires knowledge in financing, registering, and licensing issues that are not necessary in other retail industries).
Nonstore retailers
Nonstore retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. These establishments reach customers and market merchandise with methods such as:
- Broadcasting "infomercials,"
- Broadcasting and publishing direct-response advertising,
- Publishing paper and electronic catalogs,
- Soliciting door-to-door,
- In-home demonstrations,
- Selling from portable stalls (street vendors, except food), and
- Distributing 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.
Buying for resale
Buying 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 buying 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 non-consumer goods, such as farm machinery and heavy duty trucks, are included in wholesale trade even if they often sell these products in single units.
Safety concerns
There are numerous safety issues that employees in the retail trade industry may be exposed to. These can include those associated with forklift operation, ergonomics, fire and emergency, materials storage/stacking, as well as violence and security-related hazards in some types of work, to name a few.
Environmental concerns
Most business sectors are affected by a number of major environmental statutes and regulations. However, the nature and scope of activities can vary across facilities in a sector. This is especially true for the retail trade industry, which involves a broad range of activities and materials.
Depending on the materials and activities at a facility, retail operations may adversely affect air, water, and land in several ways:
- Pollutants from certain operations may be discharged through drains or storm water and impact freshwater or marine ecosystems.
- Solid and hazardous wastes, including materials as common as fluorescent lamps and batteries, impact the environment and public health.
- Use or storage of oil can trigger spill prevention, control, and countermeasure requirements, as well as used oil disposal issues.
- Storage of chemicals may trigger reporting under emergency planning and community right-to-know regulations, and chemical accident prevention provisions.