45511 - Department Stores
When navigating the world of retail trade, understanding the NAICS code 45511 is essential for businesses, government contractors, and analysts alike. This code specifically pertains to Department Stores, a cornerstone of the retail industry. In this blog post, we’ll explore everything you need to know about NAICS code 45511, including its definition, sector classification, business activities, size standards, and examples of typical businesses.
What is NAICS Code 45511 – Department Stores?
NAICS (North American Industry Classification System) code 45511 covers Department Stores, which are large retail establishments offering a diverse range of consumer products. These stores provide a one-stop shopping experience by organizing merchandise into distinct departments, such as:
- Clothing and apparel
- Home furnishings and housewares
- Electronics
- Cosmetics and beauty products
By housing a broad assortment of products under one roof, department stores cater to a wide array of customer needs, making them integral to the retail trade sector.
Sector: Retail Trade
NAICS 45511 falls under the Retail Trade sector, which includes companies engaged primarily in the sale of merchandise to the general public for personal or household consumption. Department stores specifically focus on various product categories segmented into departments, often within large physical locations or multi-level buildings.
Typical Business Activities under NAICS 45511
Businesses classified under this code typically engage in the following activities:
- Management and operation of clothing and apparel departments
- Sale of home furnishings, housewares, and related items
- Retailing cosmetics and beauty products
- Operating electronics and appliances sections
- Providing a wide variety of products, often including seasonal items
Size Standards for Eligibility
Understanding size standards is critical for businesses seeking government contracts or small business benefits. According to the U.S. Small Business Administration (SBA), the size standard for NAICS code 45511 is:
| NAICS Code | Industry Title | Size Standard (Annual Receipts) |
|---|---|---|
| 45511 | Department Stores | $41.5 million (average annual receipts) |
Businesses must ensure their average annual receipts do not exceed this threshold to qualify as a small business under this NAICS code.
Examples of Businesses under NAICS Code 45511
Several well-known companies fit into this NAICS category, including:
- Macy’s, Inc.
- Nordstrom, Inc.
- Dillard’s, Inc.
- Kohl’s Corporation
- JCPenney Company, Inc.
These entities all provide a diverse range of products organized into departments and cater to broad consumer markets.
NAICS 45511 Code Details Table
| Attribute | Details |
|---|---|
| NAICS Code | 45511 |
| Title | Department Stores |
| Sector | Retail Trade |
| Description | Retail establishments with multiple departments selling varied merchandise, including clothing, home goods, electronics, and cosmetics |
| Size Standard | $41.5 million (average annual receipts) |
| Typical Business Activities | Clothing departments, Home furnishings, Cosmetics and beauty products departments |
| Examples of Businesses | Macy's, Nordstrom, Kohl's |
Frequently Asked Questions (FAQ)
What types of products are sold by businesses under NAICS code 45511?
Businesses classified under this code sell a wide variety of merchandise, including apparel, home goods, electronics, cosmetics, and more, organized into separate departments to enhance the shopping experience.
What differentiates department stores from other retail establishments?
Department stores offer a broad product assortment across multiple departments all within a single retail location, unlike specialty stores which focus on niche products.
How is the size standard of $41.5 million average annual receipts determined?
The SBA periodically reviews and sets size standards based on industry performance and economic data to define the criteria for small business eligibility.
Are online retailers included in NAICS code 45511?
Primarily, NAICS 45511 refers to physical department stores. However, some department stores operating significant online sales channels may still be classified here depending on their operations.
Conclusion
NAICS code 45511 - Department Stores plays a pivotal role in the Retail Trade sector by encompassing businesses that offer a comprehensive shopping experience through multiple merchandise departments. Whether you’re a retailer, supplier, or government contractor, understanding this classification, its size standards, and typical business activities is key to navigating the retail industry effectively.
Optimizing your business approach with this knowledge ensures you’re well-positioned to thrive under the NAICS system and maximize your opportunities in the department store market.
