NACE-BEL G—Wholesale and retail trade

Where G sits

1. G Wholesale and retail trade

Contains 2 narrower codes

• 46 Wholesale trade
• 47 Retail trade

What G includes

• This section covers wholesale and retail trade (in other words, the sale without transformation) of all types of physical goods and the provision of services related to the sale of goods. Goods are physical objects produced for which there is demand, over which ownership rights can be established, and whose ownership can be transferred from one unit to another through a market transaction. This definition is consistent with the definitions and concepts applied in the field of balance of payments, the G20 Digital Economy Task Force, the Handbook on Measuring Digital Trade, etc.
• Wholesale and retail trade are the final stages in the distribution of goods. To this end, ancillary activities are carried out (see introductory guidelines, Chapter xx), which include a number of routine operations (or manipulations) associated with trade, without transformation of the goods. These operations (or handling) include, for example, sorting, grading, and assembling goods; mixing or combining goods (e.g., sand); bottling (with or without prior cleaning of the bottles); packaging; fractionating and repackaging for distribution in small quantities; and storage (even with freezing or refrigeration). If not carried out as regular business operations (or handling), the activities mentioned may be performed as principal, secondary, or auxiliary activities in other NACE sections.
• The distinction between wholesale trade (division 46) and retail trade (division 47) is based on the type of customer.
• Wholesale trade consists of the resale of new or used goods and products to retailers, business-to-business (e.g., to industrial and commercial users, communities, and professional users), or to other wholesalers, or to intermediaries who purchase these goods and products on behalf of, or for resale to, such retailers, users, communities, etc. The main activities included are those of wholesale merchants, i.e., wholesalers who take possession of the goods they sell; wholesale traders; warehouse operators; industrial distributors; exporters; importers; and purchasing cooperatives, branches, and sales offices (but not retail stores) operated by manufacturing or mining units independently of their factories or mines for the purpose of marketing their products and which do not simply fulfill orders by direct shipment from the factories or mines. Also included are brokers, commission agents, and purchasing groups. If the wholesaler does not assume ownership of the goods it trades, it is classified in group 46.1. If the wholesaler assumes ownership of the goods, even if acting on behalf of a third party, it is classified in groups 46.2 to 46.9.
• Wholesalers frequently handle operations such as assembling, sorting, and grading goods in large quantities; breaking them down; repackaging them; redistributing them in smaller quantities (for example, pharmaceuticals); warehousing; refrigerating them; delivering and installing them; promoting them to their customers; and designing labels.
• Retail sale is the resale to the final consumer of new or used goods intended for personal or household consumption, regardless of the channel, by stores, department stores, counters and kiosks, mail-order companies, peddlers and street vendors, consumer cooperatives, auction houses, etc. It includes the sale of goods in showrooms (where displayed goods can be purchased), in temporary sales outlets (e.g., pop-up shops), and in automated retail outlets.
• Most retailers take possession of the goods they sell, but some act as intermediaries for a principal trader and sell on consignment or commission. If the retailer does not assume ownership of the goods they market, they are classified under Group 47.9. If the retailer assumes ownership of the goods, even if acting on behalf of a third party, they are classified in groups 47.1 to 47.8.
• NACE makes no distinction at the group and subclass level between in-store and online retail sales. Most retail activity takes place both in-store and online (as well as through other distribution channels), and it is difficult to differentiate between the two distribution/sales channels based on the primary sales method. The share of online and in-store sales can fluctuate over time, which affects the stability of the classification. The main criterion for classifying retail in NACE is based on what is sold, not on the sales channels.
• Mail order and internet retail are classified according to the type of goods sold.
• The distinction between wholesale and retail trade is not based on the quantity of goods sold, as wholesale can be conducted on a unit basis, just as retail can be conducted in bulk. The main distinction between wholesale and retail is the type of customer. Wholesale typically involves businesses, while retail generally involves selling to end consumers. If a trader sells indiscriminately to both business and end consumers, and it is practically impossible to distinguish between the majority of customers, it is recommended that the seller be considered a retailer.
• The mixing of beverages supplied by the manufacturer or a subcontractor is classified under manufacturing (Section C). If it is carried out as a regular operation (or handling) associated with the trade, it is considered an ancillary activity and falls under Section G.
• This section also includes: - Transit trade activities consisting of purchasing raw materials and transporting them from one customs territory to another. Transit trade represents a triangular transaction in which the transit operator carries out export and import operations between two or more different countries outside their own economic territories. The transit operator owns the goods during transit (which differs from intermediaries who do not assume ownership of the goods). - Specialized and non-specialized intermediation services for retail, see 47.9 - The sale of food and beverages via vending machines or automated points of sale

What G excludes

• The trade in electricity, see 35.15
• The trade in gaseous fuels for the supply of energy via pipelines, see 35.23
• The trade in digital goods, streaming and downloading of content on digital platforms (e.g. e-books, audio files), see section J
• The activities of resellers of prepaid calling cards and services, see 61.20
• The repair of motor vehicles and motorcycles, see division 95
• Cooperative associations; these are classified according to their principal activity

G in other systems