2.10: NAICS Codes and Direct Competitors

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Learning Objectives

Use NAICS codes to determine direct competitors

The North American Industry Classification System (NAICS), which replaced the Standard Industrial Classification (SIC) system in 1997, is used by federal statistical agencies to classify businesses. They do this so that data collected on the businesses can be aggregated to create a snapshot of the total industry for analysis and comparison. Some common NAICS codes for food retailers are as follows:

445110—supermarkets and other grocery (except convenience) stores
- commissaries, primarily grocery
- delicatessens, primarily retailing a wide variety of grocery items and meat
- food stores
- grocery stores
- supermarkets
445120—convenience stores
445210—meat markets
445220—fish and seafood markets
445230—fruit and vegetable markets
446110—pharmacies and drug stores
452311—warehouse clubs and supercenters
452319—all other general merchandise stores

Please note, however, that the above list is not exhaustive. For example, there are unique codes for candy stores, stores that sell nuts, bakeries that bake goods on premises, and bakeries that don’t. What’s important is that you can identify your NAICS code to see statistics about your specific industry, allowing you to get a better understanding of your competitive set.

Practice Questions

https://assessments.lumenlearning.co...sessments/9151

Contributors and Attributions

NAICS Codes and Direct Competitors. Authored by: Patrick Williams. Provided by: Lumen Learning. License: CC BY: Attribution