Definitions:
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. The 1997 Economic Census classifies businesses according to
the North American Industry Classification System (NAICS), 1997, unlike the Standard Industrial
Classification (SIC) used in 1992 and earlier censuses. Retail trade under NAICS excludes restaurants
and bars, included in the definition of retail trade under the SIC. Retail trade under NAICS also includes
several types of stores previously classified in wholesale trade.
Sales include merchandise sold for cash or credit at retail and wholesale by establishments primarily
engaged in retail trade; amounts received from customers for layaway purchases; receipts from rental of
vehicles, equipment, instruments, tools, etc.; receipts for delivery, installation, maintenance, repair,
alteration, storage, and other services; the total value of service contracts; and gasoline, liquor, tobacco,
and other excise taxes which are paid by the manufacturer or wholesaler and passed on to the retailer.
Sales are net after deductions for refunds and allowances for merchandise returned by customers.
Trade-in allowances are not deducted from sales. Sales do not include carrying or other credit charges;
sales (or other) taxes collected from customers and forwarded to taxing authorities; gross sales and
receipts of departments or concessions operated by other companies; and commissions or receipts from
the sale of government lottery tickets.
Sales do not include retail sales made by manufacturers, wholesalers, service establishments, or other
businesses whose primary activity is other than retail trade. They do include receipts other than from the
sale of merchandise at retail, e.g., service receipts, sales to industrial users, and sales to other retailers,
by establishments primarily engaged in retail trade.
Scope and Methodology:
The 1997 Economic Census measured activity during calendar year 1997. Large- and medium-size
firms, including all firms known to operate more than one establishment, and a sample of small
employers were sent questionnaires to be completed and returned to the Census Bureau by mail. Most
very small firms were not sent a form, and data from existing administrative records of other Federal
agencies were used instead.
These data exclude governmental establishments except for retail liquor stores (NAICS 44531).
These data include only establishments with paid employees. Retail Sales and Retail Sales Per Capita