Final answer:
The best way to categorize retailers is by using the U.S. Bureau of Census' three-digit North American Industrial Classification Systems (NAICS), which groups retailers based on their primary economic activity. Other ways to categorize retailers include their locations, number of outlets, and margins and turnover. However, it is important to note that there is no single accepted method of classifying retail competitors.
Step-by-step explanation:
The best way to categorize retailers is by the U.S. Bureau of Census' three-digit North American Industrial Classification Systems (NAICS). This classification system groups retailers based on their primary economic activity. It provides a standardized and comprehensive way to classify retail businesses. By using NAICS codes, retailers can be categorized based on the products they sell or the services they provide.
Another way to categorize retailers is by their locations. This approach looks at the geographic distribution of retail businesses. For example, retailers can be categorized as local, regional, national, or international based on their scope of operations.
The number of outlets a store maintains is also another way to categorize retailers. This method considers the size and scale of the retail operation. Retailers can be classified as single-store, multi-store, or chain stores based on the number of physical outlets they have.
Additionally, retailers can be categorized based on their margins and turnover. This approach looks at the profitability and efficiency of the retail business. Retailers can be classified as high-margin or low-margin based on their profit margins, and high-turnover or low-turnover based on their sales volume.
Lastly, it is important to note that there is no single accepted method of classifying retail competitors. Different organizations and researchers may use different classification systems depending on their specific needs and objectives.