Retail Dictionary

ANCHOR STORE

A major retail store in a shopping centre; used to drive business to smaller retailers. These larger department stores or grocery stores are generally part of a retail chain and are the prominent business in a shopping mall.

Asset Turnover

A performance measure based on a retailers net sales and total assets. It is equal to net sales divided by total assets. Big Box Stores Large stand-alone store with varying market niches. Brand A brand is a name, symbol or other identifying mark for a sellers goods or services. It is distinct from other sellers. Brand Awareness A gauge of marketing effectiveness measured by the ability of a customer to recognize and/or recall a name, image or other mark associated with a particular brand. Break Even Point The point in business where the sales equal the expenses. There is no profit and no loss. Brick & Mortar Brick and mortar store refers to retail shops that are located in a building as opposed to an online shopping destination, door-to-door sales, kiosk or other similar site not housed within a structure. Chain Store One of a number of retail stores under the same ownership and dealing in the same merchandise. Convenience products Merchandise that is purchased frequently, without advance planning, including staples, impulse items, and emergency items. Co-operative A group in which several retailers pool their resources to buy products at a discount from manufacturers; also called group buying. Catchment Area The area from where the majority of a shops customers are located. Category Killer Store An especially large specialty store featuring an enormous selection in its product category and relatively low prices. It draws consumers from wide geographic areas. Department Store A large retail unit with an extensive assortment (width and depth) of goods and services that is organized into separate departments for purposes of buying, promotion, customer service, and control. Depth of Assortment Refers to the variety in any one goods/service category with which a retailer is involved. Discount Store A self-service retail store with low markups. Example: Wal-Mart, Kmart. Destination Retailer A retailer to whom consumers will make a special shopping trip. The destination may be a store, a catalog, or a Web site. Destination Store A retail outlet with a trading area much larger than that of a competitor with a less unique appeal to customers. It offers a better merchandise assortment in its product category(ies), promotes more extensively, and creates a stronger image. Electronic Article Surveillance Involves attaching specially designed tags or labels to products to curb shoplifting. Ensemble Display An interior display whereby coordinated merchandise is grouped and displayed together. Etailing Internet retailing as it is usually referred to. Covers retailing using a variety of different technologies or media, mostly the internet. Products are chosen via a published catalog and payments made through credit cards and secure payment gateways. Ease of Entry Occurs for retailers due to low capital requirements and no, or relatively simple, licensing provisions. Everyday Low Pricing (EDLP) A version of customary pricing, whereby a retailer strives to sell its goods and services at consistently low prices throughout the selling season. First-in, first out A method of stock rotation in which goods that are received first are sold first. Newly received product is stocked behind the older merchandise. Fad A fashion that gains and loses popularity very quickly. Factory Outlet A manufacturer-owned store selling that firms closeouts, discontinued merchandise, irregulars, canceled orders, and, sometimes, in-season, first-quality. Flea Market Has many retail vendors offering a range of products at discount prices in plain surroundings. Many flea markets are located in nontraditional sites not normally associated with retailing. They may be indoor or outdoor. Food-Based Superstore A retailer that is larger and more diversified than a conventional supermarket but usually smaller and less diversified than a combination store. It caters to consumers complete grocery needs and offers them the ability to buy fill-in general merchandise. Gross Margin Gross margin is the difference between what an item costs and for what it sells. Goods Tangible products for sale that can be held or touched. General Store A shop that sells a variety of goods including food. Generic Brands No-frills goods stocked by some retailers. These items usually receive secondary shelf locations, have little or no promotion support, are sometimes of less overall quality than other brands, are stocked in limited assortments, and have plain packages. Goods Retailing Focuses on the sale of tangible (physical) products. Loss Leader Merchandise sold below cost by a retailer in an effort to attract new customers or stimulate other profitable sales. Loss leaders are restricted by state minimum-price laws. Loss Prevention Loss prevention is the act of reducing the amount of theft and shrinkage within a business. Layaway Layaway is the act of taking a deposit to store merchandise for a customer to purchase at a later date. Leased department A part of a department store that is actually leased out to another company and operated as an independent store within the department store; common with cosmetics companies. Limited line Describes a department store that carries a limited amount of merchandise, usually concentrating on clothing, accessories, and beauty supplies. Minimum Advertised Price A suppliers pricing policy that does not permit its resellers to advertise prices below some specified amount. It can include the resellers retail price as well. Margin The amount of gross profit made when an item is sold. Merchandise Mix A merchandise mix is the breadth and depth of the products carried by retailers. Also known as product assortment. Mystery Shopping A quality check system employed by companies. Dummy customers are sent into stores to check upon quality of service, behaviour and knowledge of store employees etc. Merchandising plan A strategy for actual and projected sales for a specific period of time. Non durable goods Products that are purchased frequently and used in a short period of time, such as beauty supplies and cosmetics. Nonmarking A pricing system in which each individual item does not have a price tag, instead a price is labeled on a bin or a shelf. Need-Satisfaction Approach A sales technique based on the principle that each customer has different wants; thus, a sales presentation should be geared to the demands of the individual. Negotiated Pricing Occurs when a retailer works out prices with individual customers because a unique or complex service is involved and a one-time price must be agreed upon. Neighborhood Business District (NBD) An unplanned shopping area that appeals to the convenience-shopping and service needs of a single residential area. The leading retailer is typically a supermarket, a large drugstore, or a variety store and it is situated on the major street(s) of its residential area. Odd-Even Pricing A form of psychological pricing that suggests buyers are more sensitive to certain ending digits. Open-to-Buy Merchandise budgeted for purchase during a certain time period that has not yet been ordered. Open background Describes a window display with a completely unobstructed view of the interior of the store. Overerr A mistake made when an employee enters an amount into the register that is more than the sale price. One-stop-shop Retail outlet that caters for virtually every need within a product or service group or across all products and services. Precision Retailing Using data in information systems to make refined merchandising decisions store by store. Planogram Visual description, diagram or drawing of a stores layout to include placement of particular products and product categories Profit Margin A ratio of profitability calculated as earnings divided by revenues. It measures how much out of every dollar of sales a retail business actually keeps in earnings Product Life Cycle The stages that a new product is believed to go through from the beginning to the end: Introduction, Growth, Maturity and Decline Private Label Products which are generally manufactured or provided by one company under another companys brand Quantity Discount A reduction in price based on the amount purchased. May be offered in addition to any trade discount. Quick Response (QR) Inventory Planning Enables a retailer to reduce the amount of inventory it keeps on hand by ordering more frequently and in lower quantity. Retailing The sale of goods or commodities in small quantities directly to consumers. Reserve stock Merchandise that is kept somewhere other than the selling floor. Resident Buying office An office located in a central merchandising area where buyers can receive information about products from a variety of manufacturers. Retailers Businesses that buy goods from wholesalers or manufacturers and resell them to customers. Retailing strategy A strategic plan to adapt to changing technology and markets, and meet company goals and objectives through retailing. Sale-Leaseback The practice of retailers building new stores and then selling them to real-estate investors who lease the property back to the retailers on a long-term basis. Sales Forecasting Lets a retailer estimate expected future sales for a given time period. Sales Opportunity Grid Rates the promise of new goods, services, procedures, and/or store outlets across a variety of criteria. Sales-Productivity Ratio A method for assigning floor space on the basis of sales or profit per foot. Saturated Trading Area A geographic area having proper amount of retail facilities to satisfy the needs of its population for a specific good or service, as well as to let retailers prosper. High Street a main street considered as important retail area Impulse Purchase Products that people purchase without planning for it, such as magazines or candy bars Independent A retailer that owns only one retail unit Initial Markup (at Retail) Based on the original retail value assigned to merchandise less the merchandise costs, expressed as a percentage of the original retail price Inventory Management Involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. Inventory Shrinkage Involves employee theft, customer shoplifting, and vendor fraud. KIOSK The term kiosk, as related to retailing, refers to a small stand-alone structure used as a point of purchase. This can be either a computer or display screen used to disseminate information to customers or may be a free-standing, full-service retail location. Kiosks are often found in malls and other high-traffic locations. KIRANA STORES Traditional formats of low cost retailing stores in India, mostly as stand alone family run, neighbourhood shops. Major strength being familiarization with immediate and regular customers, provision of credit facility, home delivery etc. Goods Retailing Focuses on the sale of tangible (physical) products. Loss Leader Merchandise sold below cost by a retailer in an effort to attract new customers or stimulate other profitable sales. Loss leaders are restricted by state minimum-price laws. Loss Prevention Loss prevention is the act of reducing the amount of theft and shrinkage within a business. Layaway Layaway is the act of taking a deposit to store merchandise for a customer to purchase at a later date. Leased department A part of a department store that is actually leased out to another company and operated as an independent store within the department store; common with cosmetics companies. Limited line Describes a department store that carries a limited amount of merchandise, usually concentrating on clothing, accessories, and beauty supplies. Minimum Advertised Price A suppliers pricing policy that does not permit its resellers to advertise prices below some specified amount. It can include the resellers retail price as well. Margin The amount of gross profit made when an item is sold. Merchandise Mix A merchandise mix is the breadth and depth of the products carried by retailers. Also known as product assortment. Mystery Shopping A quality check system employed by companies. Dummy customers are sent into stores to check upon quality of service, behaviour and knowledge of store employees etc. Merchandising plan A strategy for actual and projected sales for a specific period of time. Non durable goods Products that are purchased frequently and used in a short period of time, such as beauty supplies and cosmetics. Nonmarking A pricing system in which each individual item does not have a price tag, instead a price is labeled on a bin or a shelf. Need-Satisfaction Approach A sales technique based on the principle that each customer has different wants; thus, a sales presentation should be geared to the demands of the individual. Negotiated Pricing Occurs when a retailer works out prices with individual customers because a unique or complex service is involved and a one-time price must be agreed upon. Neighborhood Business District (NBD) An unplanned shopping area that appeals to the convenience-shopping and service needs of a single residential area. The leading retailer is typically a supermarket, a large drugstore, or a variety store and it is situated on the major street(s) of its residential area. Odd-Even Pricing A form of psychological pricing that suggests buyers are more sensitive to certain ending digits. Open-to-Buy Merchandise budgeted for purchase during a certain time period that has not yet been ordered. Open background Describes a window display with a completely unobstructed view of the interior of the store. Overerr A mistake made when an employee enters an amount into the register that is more than the sale price. One-stop-shop Retail outlet that caters for virtually every need within a product or service group or across all products and services. Precision Retailing Using data in information systems to make refined merchandising decisions store by store. Planogram Visual description, diagram or drawing of a stores layout to include placement of particular products and product categories Profit Margin A ratio of profitability calculated as earnings divided by revenues. It measures how much out of every dollar of sales a retail business actually keeps in earnings Product Life Cycle The stages that a new product is believed to go through from the beginning to the end: Introduction, Growth, Maturity and Decline Private Label Products which are generally manufactured or provided by one company under another companys brand Quantity Discount A reduction in price based on the amount purchased. May be offered in addition to any trade discount. Quick Response (QR) Inventory Planning Enables a retailer to reduce the amount of inventory it keeps on hand by ordering more frequently and in lower quantity. Retailing The sale of goods or commodities in small quantities directly to consumers. Reserve stock Merchandise that is kept somewhere other than the selling floor. Resident Buying office An office located in a central merchandising area where buyers can receive information about products from a variety of manufacturers. Retailers Businesses that buy goods from wholesalers or manufacturers and resell them to customers. Retailing strategy A strategic plan to adapt to changing technology and markets, and meet company goals and objectives through retailing. Sale-Leaseback The practice of retailers building new stores and then selling them to real-estate investors who lease the property back to the retailers on a long-term basis. Sales Forecasting Lets a retailer estimate expected future sales for a given time period. Sales Opportunity Grid Rates the promise of new goods, services, procedures, and/or store outlets across a variety of criteria. Sales-Productivity Ratio A method for assigning floor space on the basis of sales or profit per foot. Saturated Trading Area A geographic area having proper amount of retail facilities to satisfy the needs of its population for a specific good or service, as well as to let retailers prosper.