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 retailer 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.
Balanced Tenancy
Occurs when stores in a planned shopping center complement each
other in the quality and variety of their product offerings. The
kind and number of stores are linked to the overall needs of the
surrounding population.
Basic Stock List
Specifies the inventory level, color, brand, style category,
size, package, and so on for every staple item carried by the
retailer.
Battle of the Brands
When retailers and manufacturers compete for shelf space
allocated to various brands and for control over display
locations.
Bundled Pricing
Involves a retailer providing a number of services for one basic
price; most often seen in mobility service packages for
example.
Black Friday
In retail, Black Friday is best known as the shopping day after
Thanksgiving in the United Sates when retail stores generate their
highest sales. Black refers to the accounting term as a business
moves from loses in red ink to gains in black ink.
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 shops customer 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.
Chain
Multiple retail units under common ownership that engage in some
level of centralized (or coordinated) purchasing and decision
making.
Cash Flow
Relates to the amount and timing of revenues received to the
amount and timing of expenditures made during a specific time
period. In other words, the movement of money in and out of a
business and the resulting availability of cash.
Capital Expenditures
Retail expenditures that are long-term investments in fixed
assets.
Cross Merchandising
A marketing practice based on lateral marketing principle, which
includes displaying products from complementary categories, in
order to generate incremental sales. The practice has assumed wider
meanings to include cross-promotions and display of
non-complementary merchandise too.
Category specialist
A retail store that offers merchandise in a narrow category but
a large assortment of merchandise within that category, usually at
competitive prices and dominates a retail category. It can also be
termed as `Category Killer`.
Cannibalism
The impact that a new location will have on an existing stores
sales in a chain corporation.
Cyber Monday
Cyber Monday, the Monday following Thanksgiving in the U.S., is
one of the busiest shopping days of the year for online retailers.
The term was coined by Shop.org, a division of National Retail
Federation. Retailers notice a spike in sales on this day as many
consumers chose not to shop during Black Friday or did not find
what they were looking for, headed to the web on Monday from work
or home to find bargains. Many retailers use Cyber Monday to kick
off the holiday shopping season by offering special promotions.
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.
Durable Goods/Durables
Products that can be used frequently and have a long life
expectancy, such as furniture, jewelry, and major appliances.
Dry Grocery
Generally food that is not fresh, e.g. Masalas/condiments.
Dead Areas
Awkward spaces where normal displays cannot be set up.
Downsizing
Exists when unprofitable stores are closed or divisions are sold
off by retailers dissatisfied with their performance.
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.
End User The person who uses a product that has been
manufactured and marketed. Based on the idea that the end goal of a
manufactured product is for it to be useful to the
consumer.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.
Forecourt Retail
One stop solution to all the demands of customers coming to
petrol pumps.
Food court
an area as in a shopping mall where fast food is sold usually
around a common eating area.
Full-Line Discount Store
A type of department store characterized by (1) a broad
merchandise assortment; (2) centralized checkout service; (3)
merchandise normally sold by self-service with minimal assistance;
(4) no catalog order service; (5) private-brand nondurable goods
and well-known manufacturer-brand durable goods; (6) hard goods
accounting for a much greater percentage of sales than at
traditional department stores; (7) a relatively inexpensive
building, equipment, and fixtures; and (8) less emphasis on credit
sales than in full-service stores.
Franchise
A trading entity such as a marketing tool or method, a product
or group of products or simply a trade brand.
Franchisee
The party that sells goods and services within the framework of
the franchise.
Franchisor
The party that established (manages) the franchise.
Footfall
In the retail parlance, the number of people visting a retail
outlet in a period of time is called a footfall. Even though a
footfall indicates the number of people who visited a retail
outlet, it is only when footfalls are converted into purchases,
that makes for retail success.
Franchise
The right under which a franchisee person or company may market
a product or service, as granted by the franchisor (the proprietary
owner). A franchise agreement is the contract defining the terms
and conditions between the franchisor and franchisee. Franchises
often give exclusive rights for a specified area
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.
Goods/Service Category
A retail firm line of business.
Gray Market Goods
Brand-name products purchased in foreign markets or goods
transshipped from other retailers. They are often sold at low
prices by unauthorized dealers.
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.
High Street
a main street considered as important retail area
Hardlines
A store department or product line primarily consisting of
merchandise such as hardware, house wares, automotive, electronics,
sporting goods, health and beauty aids or toys
Top of Form
HTMLCONTROL Forms.HTML:Hidden.1 Impulse Purchase
Products that people purchase without planning for it, such as
magazines or candy bars
IndependentA 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 ShrinkageInvolves employee theft, customer
shoplifting, and vendor fraud.
Isolated Store
A freestanding retail outlet located on either a highway or a
street. There are no adjacent retailers with which this type of
store shares traffic.
Inventory turnover
A ratio measuring the adequacy and efficiency of the inventory
balance, calculated by dividing the cost of goods sold by the
amount of the average inventory.
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.
Keystone Pricing
Keystone pricing is a method of marking merchandise for resells
to an amount that is double the wholesale price.
Loss Leader
A selected item that is deliberately sold at less than cost in
order to attract customers.
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.
Leader Pricing
Occurs when a retailer advertises and sells selected items in
its goods/service assortment at less than usual profit margins. The
goal is to increase customer traffic in the hope of selling
regularly priced goods and services in addition to the specially
priced items.
Leveraged Buyout (LBO)
An ownership change that is mostly financed by loans from banks,
investors, and others.
Liabilities
Any financial obligations a retailer incurs in operating a
business.
LIFO Method
(Last in, first out) Assumes new merchandise is sold first,
while older stock remains in inventory. It matches current sales
with the current cost structure.
Limited Decision Making
Occurs when a consumer uses each of the steps in the purchase
process but does not need to spend a great deal of time on each of
them.
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.
Merger
The combining of two or more retail organizations into one
company.
Multiline drugstore
A store that sells a variety of health and beauty products, plus
some small appliances and household items, in addition to
prescription drugs.
Merchandising
The way that products are displayed in a shop.
Multiple (store)
Retail Chain.
Maintained Markup (at Retail)
Based on the actual price
Maintenance-Increase-Recoupment Lease
Has a provision allowing for rent increases if a property owner
taxes, heating bills, insurance, or other expenses rise beyond a
certain point.
Manufacturer (National) Brands
Produced and controlled by manufacturers. They are usually well
known, supported by manufacturer ads, somewhat pre-sold to
consumers, require limited retailer investment, and often represent
maximum product quality to consumers.
Marketing Research in Retailing
Entails the collection and analysis of information relating to
specific issues or problems facing a retailer.
Marketing Research Process
Embodies a series of activities: defining the issue or problem
to be studied, examining secondary data, generating primary data
(if needed), analyzing data, making recommendations, and
implementing findings.
Market Penetration
A pricing strategy in which a retailer seeks to achieve large
revenues by setting low prices and selling a high unit volume.
Market-Segment Product Groupings
Place various products appealing to a given target market
together.
Market Skimming
A pricing strategy wherein a firm charges premium prices and
attracts customers less concerned with price than service,
assortment, and status.
Midnight sale
A centre wide, merchants` association-sponsored, low-end,
off-price promotion, generally continuing until 11 p.m or midnight:
one night only
Markdown
Planned reduction in the selling price of an item, usually to
take effect either within a certain number of days after seasonal
merchandise is received or at a specific date. Also, A reduction
from selling price to meet the lower price of another retailer,
adapt to inventory overstocking, clear out shopworn merchandise,
reduce assortments of odds and ends, and increase customer
traffic.
Markdown Percentage
The total markdown as a percentage of net sales (in dollars).
Markup Percentage (at Retail)
The difference between retail price and merchandise cost
expressed as a percentage of retail price.
Markup Pricing
A form of cost-oriented pricing in which a retailer sets prices
by adding per-unit merchandise costs, operating expenses, and
desired profit.
Marquee
A sign used to display a store name and/or logo.
Massed Promotion Effort
Used by retailers that promote mostly in one or two seasons.
Mass Marketing
Selling goods and services to a broad spectrum of consumers.
Mass Merchandising
A positioning approach whereby retailers offer a discount or
value-oriented image, a wide and/or deep merchandise assortment,
and large store facilities.
Mazur Plan
Divides all retail activities into four functional areas:
merchandising, publicity, store management, and accounting and
control.
Megamall
An enormous planned shopping center with 1-million-plus square
feet of retail space, multiple anchor stores, up to several hundred
specialty stores, food courts, and entertainment facilities.
Membership Club
Aims at price-conscious consumers, who must be members to
shop.
Memorandum Purchase
Occurs when items are not paid for by the retailer until they
are sold. The retailer can return unsold merchandise. However, it
takes title on delivery and is responsible for damages
Merchandise Available for Sale
Equals beginning inventory, purchases, and transportation
charges.
Merchandise Buying and Handling Process
Comprised of an integrated and systematic sequence of steps from
establishing a buying organization through regular
re-evaluation.
Merchandise Space
The area where nondisplayed items are kept in stock or
inventory.
Merchandising
Consists of the activities involved in acquiring particular
goods and/or services and making them available at the places,
times, and prices and in the quantity to enable a retailer to reach
its goals.
Mergers
Involve the combination of separately owned retail firms.
Micro-Merchandising
A strategy whereby a firm adjusts shelf-space allocations to
respond to customer and other differences among local markets.
Minimum-Price Laws
A strategy whereby a firm adjusts shelf-space allocations to
respond to customer and other differences among local markets.
Model Stock Approach
A method of determining the amount of floor space to carry and
display a proper merchandise assortment.
Model Stock Plan
The planned composition of fashion goods, which reflects the mix
of merchandise available based on expected sales. The model stock
plan indicates product lines, colors, and size distributions.
Monthly Sales Index
A measure of sales seasonality that is calculated by dividing
each month actual sales by average monthly sales and then
multiplying the results by 100.
Mother Hen with Branch Store Chickens Organization
Exists when headquarters executives oversee and operate the
branches. This works well if there are few branches and the buying
preferences of branch customers are similar to customers of the
main store.
Motives
The reasons for consumers behavior.
Multidimensional Scaling
A statistical technique that allows attitudinal data to be
collected for several attributes in a manner that allows data
analysis to produce a single overall rating of a retailer (rather
than a profile of individual characteristics).
Multiple-Unit Pricing
A policy whereby a retailer offers discounts to customers who
buy in quantity.
Mom & Pop Stores
Small independently run stores.
M Commerce
(mobile commerce) is the buying and selling of goods and
services through wireless handheld devices such as cellular
telephone and personal digital assistants (PDAs). Known as
next-generation e-commerce, m-commerce enables users to access the
Internet without needing to find a place to plug in.
Maintained markup
The difference between the net sales and the gross cost of
merchandise sold. it is the margin on sales before making
adjustments for cash discounts earned and alternation costs.
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.
Neighborhood Shopping Center
A planned shopping facility with the largest store being a
supermarket and/or a drugstore. It serves 3,000 to 50,000 people
who are within 15 minutes driving time (usually fewer than 10
minutes).
Net Lease
Calls for all maintenance costs, such as heating, electricity,
insurance, and interior repair, to be paid by the retailer -- which
is responsible for their satisfactory quality.
Net Profit
Equals gross profit minus retail operating expenses.
Net Profit Before Taxes
The profit earned after all costs have been deducted.
Net Profit Margin
A performance measure based on a retailers net profit and net
sales. It is equal to net profit divided by net sales.
Net Sales
The revenues received by a retailer during a given time period
after deducting customer returns, markdowns, and employee
discounts.
Net Worth
Computed as a retailers assets minus its liabilities.
Never-Out List
Used when a retailer plans stock levels for best-sellers. Items
accounting for high sales volume are stocked in a manner that
ensures they are always available.
Niche Retailing
Enables retailers to identify customer segments and deploy
unique strategies to address the desires of those segments.
Nondisguised Survey
A technique in which the respondent is told the real purpose of
a research study.
Nongoods Services
The area of service retailing in which intangible personal
services (rather than goods) are offered to consumers -- who
experience services rather than possess them.
Nonprobability Sample
An approach in which stores, products, or customers are chosen
by the researcher -- based on judgment or convenience.
Nonstore Retailing
Utilizes strategy mixes that are not store-based to reach
consumers and complete transactions. It occurs via direct
marketing, direct selling, and vending machines.
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.
Outlet
Shop.
Objective-and-Task Method
A promotional budgeting technique by which a retailer clearly
defines its promotional goals and then prepares a budget to satisfy
these goals.
Objectives
The long-run and short-run performance targets that a retailer
hopes to attain. Goals can involve sales, profit, satisfaction of
publics, and image.
Observation
A form of research in which present behavior or the results of
past behavior are observed and recorded. It can be human or
mechanical.
Odd Pricing
A strategy in which retail prices are set at levels below
even-dollar values, such as $0.49, $4.98, and $199.
Off-Price Chain
Features brand-name apparel and accessories, footwear, linens,
fabrics, cosmetics, and/or housewares and sells them at everyday
low prices in an efficient, limited-service environment.
Off-Retail Markdown Percentage
The markdown for each item or category of items as a percentage
of original retail price.
One-Hundred Percent Location
The optimum site for a particular store. A location labeled as
100 percent for one firm may be less than optimal for another.
One-Price Policy
A strategy wherein a retailer charges the same price to all
customers buying an item under similar conditions.
Open Credit Account
Requires a consumer to pay his or her bill in full when it is
due.
Open-to-Buy
The difference between planned purchases and the purchase
commitments already made by a buyer for a given time period, often
a month. It represents the amount the buyer has left to spend for
that month and is reduced each time a purchase is made.
Operating Expenditures
The short-term selling and administrative costs of running a
business.
Operating Expenses
The cost of running a retail business.
Operations Management
The efficient and effective implementation of the policies and
tasks necessary to satisfy a firm customers, employees, and
management (and stockholders, if a publicly owned company).
Opportunistic Buying
Negotiating special low prices for merchandise whose sales have
not lived up to expectations, end-of-season goods, items consumers
have returned to the manufacturer or another retailer, and
closeouts.
Opportunities
The marketplace openings that exist because other retailers have
not yet capitalized on them.
Opportunity Costs
Involve forgoing possible benefits that may occur if a retailer
could make expenditures in another opportunity rather than the one
chosen.
Option Credit Account
A form of revolving account that allows partial payments. No
interest is assessed if a person pays a bill in full when it is
due.
Order-Getting Salesperson
Actively involved with informing and persuading customers, and
in closing sales. This is a true "sales" employee.
Order Lead Time
The period from the date an order is placed by a retailer to the
date merchandise is ready for sale (received, price-marked, and put
on the selling floor).
Order-Taking Salesperson
Involved in routine clerical and sales functions, such as
setting up displays, placing inventory on the shelves, answering
simple questions, filling orders, and ringing up sales.
Organizational Mission
A retailers commitment to a type of business and to a
distinctive role in the marketplace. It is reflected in the firms
attitudes to consumers, employees, suppliers, competitors,
government, and others.
Outside Buying Organization
A company or person external to the retailer that is .
Outside Buying Organization
A company or person external to the retailer that is hired to
fulfill the buying function, usually on a fee basis .
Overstored Trading Area
A geographic area with so many stores selling a specific good or
service that some retailers will be unable to earn an adequate
profit.
Owned-Goods Services
The area of service retailing in which goods owned by consumers
are repaired, improved, or maintained
Online advertising
is a form of advertising that uses the Internet and World Wide
Web in order to deliver marketing messages and attract
customers
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
POS
Point of Sale (POS) refers to the area of a store where
customers can pay for their purchases. The term is normally used to
describe systems that record financial transactions. This could be
an electric cash register or an integrated computer system which
records the data that comprises a business transaction for the sale
of goods or services
Product Depth
Product depth is the number of each item or particular style of
a product on the shelves. Product depth is also known as product
assortment or merchandise depth
Product Breadth
The product breadth is the variety of product lines offered by a
retailer
Purchase Order
A purchase order (PO)is a written sales contract between buyer
and seller detailing the exact merchandise or services to be
rendered from a single vendor
Point-of-Purchase Display
Point-of-purchase displays, or POP displays, are marketing
materials or advertising placed next to the merchandise it is
promoting. These items are generally located at the checkout area
or other location where the purchase decision is made. For example,
The checkout counters of many convenience stores are cluttered with
cigarette and candy POP displays
Partial background
The rear of a window display that is partially covered, but
allows customers to see through the display into the store
Patronage buying motive
A reason customers will shop at one store instead of another,
can be rational or emotional
Pin ticket
The sort of price ticket used on towels and washcloths that is
attached with a pin
Point-of-sale terminal
An electronic machine at a checkout station that feeds
information from product tags directly into a computer.
Premarking
A system in which the manufacturer, rather than the retailer,
marks merchandise with the retail price.
Preretailing
A system in which a duplicate purchase order is sent to
receiving when merchandise is ordered so that as soon as the
merchandise is received, it can be marked with the correct
prices.
Product / Service Mix
The number and kind of products and services a general
merchandise retailer will offer.
Product / Service planning
The process of deciding what the product/service mix will
be.
Profit Center
A section of a store that earns money for the retailer.
Pull policy
A promotional policy aimed at building strong consumer demand
for a product.
Push policy
A promotional policy aimed at markets with the intention of
getting retailers to stock a product in order to build supply in
the marketplace.
Pallet
A large flat board that is used to hold and move products.
Pitch
A plot of land used by street traders As in sales pitch, the
approach, emphasis and nuances used when articulating the virtues
of a service or product.
Polyester
Synthetic polymer often used to coat household goods such as
refrigerators.
Polyhook Bag
A bag that contains a small plastic hangar as an integral part
of the top of the bag.
Price War
A colloquial phrase denoting aggressive price reductions on the
same (or similar) products by competing retailers.
Primary Packaging
The immediate packaging around the finished product.
Procurement
Obtaining Goods.
Product Offer
Products attributes, including price
Parasite Store
An outlet that does not create its own traffic and that has no
real trading area of its own
Partnership
An unincorporated retail firm owned by two or more persons, each
of whom has a financial interest.
Perceived Risk
The level of risk a consumer believes exists regarding the
purchase of a specific good or service from a specific retailer,
whether or not that belief is factually correct.
Percentage Lease
Stipulates that rent is related to the retailers sales or
profits.
Percentage-of-Sales Method
A promotional budgeting technique whereby a retailer ties its
promotion budget to sales revenue.
Percentage Variation Method
An inventory-level planning method where beginning-of-month
planned inventory level during any month differs from planned
average monthly stock by only one-half of that month variation from
estimated average monthly sales.
Percentage Variation Method
An inventory-level planning method where beginning-of-month
planned inventory level during any month differs from planned
average monthly stock by only one-half of that month's variation
from estimated average monthly sales.
Performance Measures
The criteria used to assess retailer effectiveness. They include
total sales, average sales per store, sales by goods/service
category, sales per square foot, gross margins, gross margin return
on investment, operating income, inventory turnover, markdown
percentages, employee turnover, financial ratios, and
profitability.
Perpetual-Inventory Unit-Control System
Keeps a running total of the number of units handled by a
retailer by ongoing record-keeping entries that adjust for sales,
returns, transfers to other departments or stores, receipt of
shipments, and other transactions. It can be done manually, use
tags processed by computers, or rely on point-of-sale devices.
Personal Selling
Involves oral communication with one or more prospective
customers for the purpose of making sales.
Physical Inventory System
Involves an actual counting of merchandise. A retailer using the
cost method of inventory valuation and relying on a physical
inventory system can derive gross profit only as often as it
conducts a full physical inventory.
Planned Shopping Center
Consists of a group of architecturally unified commercial
establishments built on a site that is centrally owned or managed,
designed and operated as a unit, based on balanced tenancy, and
surrounded by parking facilities.
Point-of-Purchase (POP) Display
An interior display that provides consumers with information,
adds to store atmosphere, and serves a substantial promotional
role.
Positioning
Enables a retailer to devise its strategy in a way that projects
an image relative to its retail category and its competitors, and
elicits consumer responses to that image.
Power Center
A shopping site with (a) up to a half-dozen or so category
killer stores and a mix of smaller stores or (b) several
complementary stores specializing in a product category.
Power Retailer
The status reached by a company that is dominant in some aspect
of its strategy. Consumers view the company as distinctive enough
to become loyal to it and go out of their way to shop there.
Power Retailer
The status reached by a company that is dominant in some aspect
of its strategy. Consumers view the company as distinctive enough
to become loyal to it and go out of their way to shop there.
Predatory Pricing
Involves large retailers that seek to destroy competition by
selling goods and services at very low prices, thus causing small
retailers to go out of business. The practice is restricted by
federal and state laws.
Prestige Pricing
Assumes consumers will not buy goods and services at prices
deemed too low. It is based on the price-quality association.
Price Elasticity of Demand
Relates to the sensitivity of customers to price changes in
terms of the quantities they will buy.
Price Guarantees
Protect retailers against possible price declines. If a retailer
cannot sell an item at a given price, the manufacturer pays it; the
difference between planned retail and actual retail selling
prices.
Price Line Classifications
Enable retail sales, inventories, and purchases to be analyzed
by retail price category.
Price Lining (1)
A practice whereby retailers sell merchandise at a limited range
of price points, with each price point representing a distinct
level of quality.
Price Lining (2)
Used by service retailers providing a wide selection of
services. A range of prices is matched to service levels.
Price-Quality Association
A concept stating that many consumers feel high prices connote
high quality and low prices connote low quality.
Primary Customer Services
Those considered basic components of the retail strategy mix;
they must be provided.
mary Trading Area
Encompasses 50 percent to 80 percent of a store's customers. It
is the geographic area closest to the store and possesses the
highest density of customers to population and the highest
per-capita sales.
Private (Dealer) Brands
Contain names designated by wholesalers or retailers, are more
profitable to retailers, are better controlled by retailers, are
not sold by competing retailers, are less expensive for consumers,
and lead to customer loyalty to retailers.
Productivity
Productivity The efficiency with which a retail strategy is
carried out.
Product Life Cycle
Shows the expected behavior of a good or service over its life.
The traditional cycle has four stages: introduction, growth,
maturity, and decline
Product/Trademark Franchising
An arrangement in which franchised dealers acquire the
identities of their suppliers by agreeing to sell the latter's
products and/or operate under suppliers' names
Profit-and-Loss (Income) Statement
Represents a summary of a retailer's revenues and expenses over
a particular period of time, usually on a monthly, quarterly,
and/or yearly basis
Prototype Stores
Occur with an operations strategy that requires multiple outlets
in a chain to conform to relatively uniform construction, layout,
and operations standards.
Psychological Pricing
Refers to consumer perceptions of retail prices.
Purchase Act
An exchange of money or a promise to pay for ownership or use of
a good or service. Purchase variables include the place of
purchase, terms, and availability of merchandise.
Purchase-Motivation Product Groupings
Appeal to the consumer's urge to buy a product and the time he
or she is willing to spend in shopping.
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Quantity Discount
A reduction in price based on the amount purchased. May be
offered in addition to any trade discount.
Quick Response (QR) Inventory PlanningEnables 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.
Returns percentage
The relationship between returns and allowances, and sales,
calculated by dividing returns and allowances by gross sales.
Ringseal ticket
A pricing ticket shaped like a butterfly bandage, used on
jewelry and lampshades.
Retail Chain
A group of shops operated by the same organization.
Reverse Logistics
Reverse movement of goods through the supply chain.
Rack Display
An interior display that hangs or presents products neatly.
Rationalized Retailing
A strategy involving a high degree of centralized management
control combined with strict operating procedures for every phase
of business.
Reach
The number of distinct people exposed to a retailer's ads in a
specified period.
Recommendations
The stage in the research process during which the alternative
approach to best solve a problem or issue is presented.
Recruitment
The activity whereby a retailer generates a list of job
applicants.
Reference Groups
Influence people's thoughts and/or behavior. They may be
classified as aspirational, membership, and dissociative
Regional Shopping Center
A large, planned shopping facility appealing to a geographically
dispersed market. It has at least one or two full-sized department
stores and 50 to 150 or more smaller retailers. The market for this
center is 100,000-plus people, who live or work up to 30 minutes'
driving time from the center.
Regression Model
A computer site-selection model that develops a series of
mathematical equations showing the association between potential
store sales and various independent variables at each location
under consideration
Reilly's Law of Retail Gravitation
The traditional means of trading area delineation that
establishes a point of indifference between two cities or
communities, so the trading area of each can be determined
Relationship Retailing
Exists when retailers seek to establish and maintain long-term
bonds with customers, rather than act as if each sales transaction
is a completely new encounter with them
Rented-Goods Services
The area of service retailing in which consumers lease and use
goods for specified periods of time
Reorder Point
The stock level at which new orders must be placed
Resident Buying Office
An inside or outside buying organization that is usually
situated in important merchandise centers (sources of supply) and
provides valuable data and contacts.
Retail Audit
The systematic examination and evaluation of a firm's total
retailing effort or some specific aspect of it. Its purpose is to
study what a retailer is presently doing, appraise how well the
firm is performing, and make recommendations for future actions
Retail Balance
Refers to the mix of stores within a district or shopping
center
Retail Information System
Anticipates the information needs of retail managers; collects,
organizes, and stores relevant data on a continuous basis; and
directs the flow of information to the proper retail decision
makers.
Retailing Concept
Comprises these four elements: customer orientation, coordinated
effort, value-driven, and goal orientation.
Retailing Effectiveness Checklist
Lets a firm systematically assess its preparedness for the
future.
Retail Institution
Refers to the basic format or structure of a business.
Institutions can be classified by ownership, store-based retail
strategy mix, service versus goods retail strategy mix, and
nonstore-based retail strategy mix.
Retail Life Cycle
A theory asserting that institutions -- like the goods and
services they sell -- pass through identifiable life-cycle stages:
innovation, accelerated development, maturity, and decline.
Retail Method of Accounting
A way by which the closing inventory value is determined by
calculating the average relationship between the cost and retail
values of merchandise available for sale during a period .
Retail Organization
How a firm structures and assigns tasks (functions), policies,
resources, authority, responsibilities, and rewards so as to
efficiently and effectively satisfy the needs of its target market,
employees, and management.
Retail Performance Index
Encompasses five-year trends in revenue growth and profit
growth, and a six-year average return on assets.
Retail Promotion
Any communication by a retailer that informs, persuades, and/or
reminds the target market about any aspect of that firm.
Retail Reductions
Represent the difference between beginning inventory plus
purchases during the period and sales plus ending inventory. They
should encompass anticipated markdowns, employee and other
discounts, and stock shortages.
Retail Strategy
The overall plan guiding a retail firm. It has an influence on
the firm's business activities and its response to market forces,
such as competition and the economy.
Return on Assets (ROA)
A performance ratio based on a retailer's net sales, net profit,
and total assets.
Return on Net Worth
A performance measure based on a retailer's net profit, net
sales, total assets, and net worth.
Revolving Credit Account
Allows a customer to charge items and be billed monthly on the
basis of the outstanding cumulative balance.
Robinson-Patman Act
Bars manufacturers and wholesalers from discrimination in price
or sales terms in selling to individual retailers if these
retailers are purchasing products of "like quality" and the effect
of such discrimination would be to injure competition.
Routine Decision Making
Takes place when a consumer buys out of habit and skips steps in
the purchase process.
Retail Technology
systems which increase retailers' efficiency and productivity
and often create a competitive edge.
Return on Investment(ROI)
is the amount of profit or cost saving that will be realized in
return for a specific expenditure of money. It is usually expressed
as a percentage of the original monetary outlay. The ROI ratio
compares the net benefits of a project to its total costs
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.
Scenario Analysis
Lets a retailer project the future by examining the key factors
that will affect its long-run performance and then preparing
contingency plans based on alternate scenarios .
Scrambled Merchandising
Lets a retailer project the future by examining the key factors
that will affect its long-run performance and then preparing
contingency plans based on alternate scenarios.
Scrambled Merchandising
Occurs when a retailer adds goods and services that are
unrelated to each other and to the firm's original business.
Secondary Business District (SBD)
An unplanned shopping area in a city or town that is usually
bounded by the intersection of two major streets. It has at least a
junior department store, a variety store, and/or some larger
specialty stores -- in addition to many smaller stores.
Secondary Trading Area
A geographic area with an added 15 percent to 25 percent of a
store's customers. It is located outside a primary trading area,
and customers are more widely dispersed.
Selective Distribution
Takes place when suppliers sell through a moderate number of
retailers. This allows suppliers to have higher sales than in
exclusive distribution and lets retailers carry some competing
brands.
Self-Fulfillment
A life-style concept whereby people express their growing sense
of uniqueness through goods and services purchases.
Selling Against the Brand
The practice of retailers carrying manufacturers' brands and
placing high prices on them so rival brands (such as private-label
goods) can be sold more easily.
Selling Space
The area set aside for displays of merchandise, interactions
between salespeople and customers, demonstrations, and so on.
Separate Store Organization
Treats each branch as a separate store with its own buying
responsibilities. Customer needs are quickly noted, but duplication
by managers in the main store and the branches is possible.
Service Blueprint
Systematically lists all the service functions to be performed
and the average time expected for each one's completion.
Service Retailing
Involves transactions between companies or individuals and final
consumers where the consumers do not purchase or acquire ownership
of tangible products. It encompasses rented goods, owned goods, and
nongoods.
SERVQUAL
Lets retailers assess the quality of their service offerings by
asking customers to react to a series of statements in five areas
of performance: reliability, responsiveness, assurance, empathy,
and tangibles.
Simulation
A type of experiment whereby a computer-based program is used to
manipulate the elements of a retail strategy mix rather than test
them in a real setting.
Situation Analysis
The candid evaluation of the opportunities and potential
problems facing a prospective or existing retailer.
Sole Proprietorship
An unincorporated retail firm owned by one person.
Sorting Process
Involves the retailer's collecting an assortment of goods and
services from various sources, buying them in large quantity, and
offering to sell them to consumers in small quantities.
Specialog
Enables a firm to cater to specific needs of customer segments,
emphasize a limited number of items, and reduce its catalog
production and postage costs.
Specialty Store
A general merchandise retailer that concentrates on selling a
specific kind of product or service.
Standardization
A strategy of directly applying a tried and tested retail
strategy to newer markets to ensure customers get the same
experience across all stores of a chain.
Standard Merchandise Classification
A detailed list of common merchandise-reporting categories
devised by the National Retail Federation. Its use lets retailers
contrast their financial data with industry averages.
Stock-to-Sales Method
An inventory-level planning technique wherein a retailer wants
to maintain a specified ratio of goods-on-hand to sales.
Stock Turnover
Represents the number of times during a specific period, usually
one year, in which the average inventory on hand, is sold. Stock
turnover can be computed in units or money (at retail or cost).
Storability Product Groupings
Classify and display products needing special handling and
storage together.
Storefront
The total physical exterior of a store. It includes the marquee,
entrances, windows, lighting, and construction materials.
Store Loyalty
Exists when a consumer regularly patronizes a particular
retailer (store or nonstore) that he or she knows, likes, and
trusts.
Store Maintenance
Encompasses all the activities involved in managing a retailer's
physical facilities.
Straight Lease
Requires the retailer to pay a fixed amount per month over the
life of a lease. It is the simplest, most direct leasing
arrangement.
Sales Floor
The sales floor is the location in a retail store where goods
are displayed and sales transactions take place. For example, the
receiving of merchandise takes place in the stock room, but all
direct sales and customer interactions are done on the sales
floor
Shoplifting
Shoplifting is the taking of merchandise offered for sale
without paying
Shrinkage
Retail shrinkage is a reduction or loss in inventory due to
shoplifting, employee theft, paperwork errors and supplier
fraud
SKU
The Stock Keeping Unit (SKU) is a number assigned to a product
by a retail store to identify the price, product options and
manufacturer
Sliding
A loss prevention term referring to the act of a cashier passing
merchandise around the cash register barcode scanner without
actually scanning the item
Softlines
A store department or product line primarily consisting of
merchandise such as clothing, footwear, jewelery, linen and
towels
Staple Goods
Staple goods are products purchased regularly and out of
necessity. Traditionally, these items have fewer markdowns and
lower profit margins. While price shifts may raise or lower demand
for certain kinds of products, the demand for staple goods rarely
changes when prices change
Scrim
A sheer fabric onto which pictures can be painted to be used as
a transparent backdrop in the theater and as a visual merchandising
prop in stores
Service
A product/service mix that offers only a service, with no
accompanying product needed or wanted, such as an insurance
policy.
Service with accompanying products
A product/service mix in which a service is the primary
offering, such as interior decorating, and products, such as
curtains and carpet, are offered to accompany and augment the
service.
Shoplifting detection wafer
A small device attached to goods, especially clothing, that sets
off an alarm if it leaves the store.
Specialty products
Products that solve a specific want or need for specific
customers, often expensive products with special characteristics or
brand identity.
Specification buying
Demands made by retailers and wholesalers to manufacturers of
the products they sponsor and sell.
Store Operations
Includes all functions of operating a store except
merchandising, such as customer service, protection, maintenance,
and distribution.
String Ticket
A pricing ticket attached with a piece of string.
Supportive Services
Free services offered to customers to increase convenience, make
shopping easier, and entice customers to buy more.
Sales Promotion
A time-limited period when a product or group of products are
given extra publicity and intense marketing support. Generally used
to give a boost to sales of a certain product category/brand.
Secondary Packaging
The container in which several finished packs would be
distributed (and sometimes displayed in).
Self-Service
A store where customers can pick the goods directly from the
display and take them to the checkout for payment.
Shadow Box
A cabinet display built into a wall.
Same Store Sales
A statistic used in retail industry analysis. It compares sales
of stores that have been open for a year or more. This statistic
allows investors to determine what portion of new sales has come
from sales growth and what portion from the opening of new stores.
Same store sales are usually released by retail companies on a
monthly basis. This is also known as "comps."
T-Stand
A type of merchandising fixture commonly used to display
apparel, with either straight or waterfall arms.
Triple Net Lease
A triple net lease is a rental agreement on a commercial
property where the tenant agrees to pay all real estate taxes,
building insurance, and maintenance on the property.
Vertical Retailer Retailers that sell only their own branded
merchandise; these goods are not found anywhere except in their own
stores or catelogues (also called lifestyle retailer). Bottom of
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