skip to content
Primary navigation

NAICS Primer

by Chloe Campbell
chloe.campbell@state.mn.us
August 2017

Every other month Minnesota Employment Review will spotlight several North American Industry Classification System (NAICS) sectors for the reader. More detailed information on each NAICS sector can be found at https://apps.deed.state.mn.us/lmi/qcew/ResultsDisp.aspx . This month the spotlight is on:

44-45 Retail Trade

The Retail Trade sector includes establishments engaged in retailing merchandise, generally without transformation, and providing services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise to the final user. Retailers are, therefore, organized to sell merchandise in small quantities to the general public. This sector covers two main types of retailers – store and nonstore retailers. Store retailers operate fixed point-of-sale locations, located and designed to attract walk in customers. Nonstore retailers serve the general public as well but lack a fixed point-of-sale location. Nonstore retailers reach customers through in-home demonstrations, infomercials, street sales, and catalogs. While farmers are final users of farm machinery, they are businessmen and thus farm machinery is coded to wholesale rather than retail.

A recent article in The Atlantic magazine noted that the decline in brick and mortar shops is from the growth of online shopping ( https://www.theatlantic.com/business/archive/2017/04/retail-meltdown-of-2017/522384/). Online shopping is not new but has become more convenient with online retailers offering easy return policies and free shipping and with the advent of apps and mobile wallet that store credit card information.

Minnesota is not immune to the challenges facing many retail establishments. Between 2015 and 2016 department stores, discount department stores and clothing stores all experienced declines in at least one of the following categories: number of establishments, employment, or annual wages (see Table 1).

 

Table 1

NAICS

2015 Establishments

2016 Establishments

2015 Employment

2016 Employment

2015 Average Weekly Wage

2016 Average Weekly Wage

445211

Department Stores (except Discount Department Stores)

82

88

8,881

8,577

$408

$415

452112

Discount Department Stores

209

203

17,447

16,888

$392

$386

448110

Men’s Clothing Stores

98

95

805

802

$555

$561

448120

Women’s Clothing Stores

570

563

5,506

5,615

$311

$301

448130

Children’s and Infants’ Clothing Stores

108

100

1,030

1,013

$313

$302

448140

Family Clothing Stores

334

325

5,664

5,568

$282

$281

448150

Clothing Accessories Stores

132

129

649

611

$369

$400

https://apps.deed.state.mn.us/lmi/qcew/ResultsDisp.aspx

 

Minnesota experienced positive establishment and employment growth in Pharmacies and Drugstores (NAICS 446110) and Supermarkets and Other Grocery (445110). There were 2,554 more employees and eight more establishments in NAICS code 445110 and 674 more employees and 27 more establishments in NAICS code 446110 in 2016 than in 2015 (https://apps.deed.state.mn.us/lmi/qcew/ResultsDisp.aspx).

Overall, Retail Trade in Minnesota is facing challenges. While employment in the sector increased by 5,776 between 2015 and 2016, the number of retail establishments decreased to 18,108 in 2016 from 18,298 in 2015. Average weekly wages in this sector increased by $11 in the same time period.

back to top