MKT 3328: Retailing

The Standard Industrial Classification (SIC) system was created in the 1930’s to classify establishments by the type of activity in which they are primarily engaged. The SIC system has not been updated since 1987, however, it is still widely used by marketing companies and is the most popular industry classification system.

The Standard Industrial Classification (SIC) code system was born in the 1930s and used for several decades. It was developed by the Interdepartmental Committee on Industrial Statistics, established by the Central Statistical Board of the United States who developed the List of Industries for Manufacturing, published in 1938, and the 1939 List of Industries for non-manufacturing industries, which became the first Standard Industrial Classification for the United States. The SIC system was last revised in 1987 and was used by most government agencies including the Census Bureau and many private publishers. It was last used by the Census for the 1992 Economic Census, though many databases still include it as part of their indexing. In some cases, particularly when it comes to retail, using SIC codes can be better than using NAICS codes.
The system is broken down into 10 Divisions (A-J) and each is then divided into Major Groups (2 digits) and then into specific 4 digit numbers.

Article from the NAICS Association that outline the differences between NAICS Codes and SIC Codes.

Search for SIC codes by company name, industry, or primary business activity. With more than 10,000 unique classifications, SIC codes have been extended to create the most accurate way to target businesses.

Standard Industrial Classification (SIC) codes and North American Industry Classification System (NAICS) codes serve as essential tools for categorizing businesses. Established in 1937, the SIC system laid the groundwork for industry classification, undergoing multiple updates until 1987. The inception of NAFTA in the early 1990s prompted the need for a more detailed classification system that could accommodate the economic landscapes of the U.S., Canada, and Mexico. As a result, NAICS was introduced in 1997 to provide a modernized approach to industry classification.

Convert SIC Codes to NAICS Codes using the SIC crosswalk search above. Easily cross-reference a SIC code number or keywords to identify the mapped NAICS Code for that entry.

Industry Classification Benchmark is a hierarchical four-level system that classifies companies based on their main source of revenue. It is operated and managed by FTSE Russell, a subsidiary of London Stock Exchange Group (LSEG). It is currently one of the major classification systems for securities. This system has been in use since its release in 2005. It is globally recognized and used by some of the biggest financial institutions, such as: London Stock Exchange, NYSE Euronext and NASDAQ.

There are two competing systems for classifying stocks into sectors and industries: the Global Industry Classification Standard (GICS) and the Industrial Classification Benchmark (ICB). This article goes over the differences between the two systems.

Industry Classification Benchmark (ICB) is a comprehensive and rules based, transparent classification methodology based on research and market trends designed to support investment solutions. It was launched in 2005 and enhanced in 2019 with the integration of the Russell Global Sectors (RGS) classification scheme and additional structural enhancements.