PKD G—Wholesale and Retail Trade

Where G sits

1. G Wholesale and Retail Trade

Contains 2 narrower codes

• 46 Wholesale trade
• 47 Retail

What G includes

• Wholesale and retail trade (i.e., sales without processing) of all kinds of physical goods,
• Service activities related to the sale of goods. Goods are physical, manufactured items for which there is a demand, over which ownership rights can be established, and whose ownership can be transferred from one economic entity to another through market transactions. Supporting activities are carried out for this purpose, encompassing a range of trade-related activities without processing the goods. These activities include, among others, sorting, classifying, and assembling products, mixing or blending products (e.g., sand), bottling (with or without bottle washing), packaging, dividing into smaller batches, and repackaging goods for distribution in smaller batches, and storing (even frozen or refrigerated) products. If these activities are not performed as typical trade-related activities, they may be conducted as primary, secondary, or ancillary activities and are classified in the appropriate subclasses of other sections. Division 46 Wholesale Trade includes the resale (sale without processing) of new and used goods to retailers, industrial, commercial, professional users, corporations, institutions, or other wholesalers; agents and intermediaries engaged in the business of purchasing and then reselling. These may be individuals or businesses operating such as wholesalers, intermediaries, brokers, distributors of industrial goods, exporters, importers, trading cooperatives, and branches and sales offices (excluding retail stores) maintained by manufacturing or mining businesses for the purpose of selling their goods, but not located on their premises or mines.
• This division also includes the activities of brokers, commission sales agents, and sales agents. If a wholesaler does not take ownership of the goods they trade in, they should be classified in group 46.1. If a wholesaler takes ownership of the goods, even if acting on behalf of a third party, the wholesaler is classified in groups 46.2 to 46.9. This section also covers activities typically associated with wholesale trade, such as assembling, sorting, and grading goods in bulk, buffer storage, repackaging, and bottling, and redistributing goods into smaller batches (e.g., pharmaceuticals); storing, refrigerating, delivering, and installing goods on one's own account, promoting sales, and designing labels.
• Division 47 Retail Trade covers the resale (sale without processing) of new and used personal and household goods to individual customers, regardless of the method of sale, conducted by shops, department stores, mail-order houses, stalls, door-to-door sales, consumer cooperatives, auction houses, and the like. It includes the sale of goods through showrooms (where the displayed goods can be purchased), through temporary sales outlets (e.g., pop-up stores), and in automated retail stores. Most retailers acquire ownership of the goods they sell, but some act as agents for a principal entity and sell goods on a commission or commission basis. If a retailer does not acquire ownership of the goods they sell, they are classified in group 47.9. If a retailer acquires ownership of the goods, even if acting on behalf of others, they are classified in groups 47.1 to 47.8. The classification does not distinguish at the group or subclass level between retail sales in physical stores and online. Most retail businesses sell both in physical stores and online (as well as through other distribution channels), and it is difficult to distinguish between these two distribution/sales channels based on the primary sales method. The share of online and physical sales can change over time, affecting the stability of the classification. The primary classification criteria for retailing in the classification are based on what is sold, not the sales channels. Retail sales via mail order or the Internet are classified according to the type of goods sold. The distinction between wholesale and retail is not based on the quantity of goods sold, as wholesale sales can be made in small quantities, just as retail sales can be made in large quantities. Instead, the main distinction between wholesale and retail sales is the type of customer. Wholesale sales are typically made to businesses, while retail sales are made to individual customers, such as households. If a business sells indiscriminately to both businesses and individual customers, and it is practically impossible to determine the predominant type of customer, it is recommended to treat the seller as a retailer when determining the predominant activity. Mixing beverages, provided by a manufacturer or contractor, is classified as manufacturing (Section C). If it is performed as a normal trade activity (or procedure), it is considered an ancillary activity and is included in Section G.
• Transit trade activities, consisting of purchasing goods and transporting them from one customs territory to another. Transit trade is a three-way transaction in which a transit merchant conducts export and import transactions between two or more different countries outside its economic territory. The transit merchant is the owner of the goods during their transport (unlike intermediaries, who do not take ownership of the goods being intermediation services).
• Specialized and non-specialized retail intermediation activities, classified in the appropriate subclasses of group 47.9.
• Sale of food or beverages through vending machines or automated point-of-sale devices.

What G excludes

• Trading in electricity, classified in 35.15.Z,
• Trading in gaseous fuels for energy purposes via the mains, classified in 35.23.Z,
• Trading in digital goods, streaming and downloading content on digital platforms (e.g., e-books, audio), which are classified in the appropriate subclasses of section J,
• Resale of prepaid phone cards and services, classified in 61.20.Z,
• Repair of motor vehicles, including motorcycles, classified in the appropriate subclasses of division 95,
• Activities of cooperatives classified according to their predominant activity.

G in other systems