Professional Documents
Culture Documents
What is an Add-on?
What is a Barcode?
What is a Brand ?
What is a Consumer?
What is a Customer?
Definition: A retailer's cost is the amount paid to obtain an item from a supplier.
It is the wholesale price that a retailer pays.
What is CRM?
What is Goodwill?
What is Inventory?
What is a Kiosk?
Definitions:
What is a Warranty?
General Use: A warranty is used to help consumers feel confident that they
products they purchase will will work as designed or the problem will be
corrected.
What is Loyalty?
Mall
A combination of many stores designed to serve a large geographic area
Manufacturer
Producer of products that people buy.
Mapping
The process of determining locations and adjacencies of departments and
merchandise inside a store.
Markdown
A reduction in selling price.
Markup
The difference between the selling price and the cost of an item.
Mazur Plan
Divides all retail store activities into four major areas: of merchandising, publicity,
store management, and control.
Merchandising
Buying and selling of goods.
Also Known As: Merchandise Voucher, Store Cash, Store Credit, Store
Voucher
General Use: Most frequently used when an item is returned without a receipt or
past a store's cash refund period.
What is Non-Marking?
Definition: Non-Marking is a policy where prices are not marked on the
merchandise.
Definition: An odd price is a price just below an even dollar or cents amount,
such as $1.99 instead of $2.00.
What is Operations?
Definition: Initial markup is the first markup on an item from cost to retail price.
Definition: A Price War occurs when a retailer under prices the competition,
which can create a cycle of two or more retailers lowering prices in turn to
undercut the other.
What is Put-Away?
Definition: Put-Away is placing received goods into the warehouse storage area.
Rack Jobber
A wholesaler that is allowed by a store to install, stock, and replenish selected
items on display racks.
Referral Premium
A gift that is awarded to customers who refer potential new customers.
RFM
Recency, frequency and monetary value. Used to determine the value of a
particular customer's business. Related term: CLV.
Refund
Money or charge credit given to customer, generally for return of merchandise.
Reserve Stock
Merchandise that is stored in an area inaccessible by customers.
Retail price
Price placed on an item or service for sale to the consumer.
Retailer
An individual or firm that sells goods and services directly to the consumer.
Retailing
The selling of goods and services to the consumer.
Rotate stock
Stock new merchandise behind old merchandise when filling displays. In some
cases this also means replacing old stock completely with new stock.
Salary Supplement
Money or prizes offered to salespeople as an incentive to increase sales of a
particular type of merchandise.
Sales Forecasting
Estimating future sales volume on the basis of current sales figures and
information from manufacturers, wholesalers, accountants, economists, and
bankers.
Sales Promotion
Methods used to generate sales, attract customers to the store, build loyalty, and
promote goodwill.
Salvage goods
Merchandise that has been damaged in transit or storage.
Definition: A daily sales audit is the review of daily sales journals against the
receipt of funds.
Seasonal discount
A trade discount given to retailers willing to order, receive, and pay for goods
during the "off season."
Seasonal merchandise
Products that are in demand at a certain time of the year, such as Christmas or
Back-to-School.
Self-liquidator premium
An item of merchandise sold, usually at cost, to a shopper after he or she has
bought a product or tried a new service.
Self-service
Customers select items from open displays and take them to the register for
purchase.
Shrinkage
Merchandise losses due to shoplifting, internal theft, damages, paperwork errors,
etc.
Signage
Signs, labels, shelf tags, and other identification signs to provide directions,
prices, or information on merchandise or policies.
Special Order
A custom or one-off order for a specific customer, usually of a product not carried
in normal inventory.
Specification buying
A system in which buyers develop product specifications for their purchases
rather than selecting from what is already available in the market.
Staples
Products that are constantly in demand and infrequently influenced by fashion
changes.
Statistics
A set of tools for collecting and summarizing data, and for using the data to draw
inference from the population, which it is supposed to represent.
Step Theory / AIDA
A view customer decision making where the choice to buy or not follows these
steps: attention, interest, desire, action.
Stock turnover
A measure for determining how quickly merchandise is being sold.
Stuffers
An advertising piece that accompanies a billing statement or is placed in
shopping bags.
Syndicator
A retailer that sells goods and services in conjunction with credit card companies
Target Market
A defined group of consumers whom the retailer tries to satisfy.
Tear sheet
An actual copy of an advertisement.
Theme display
A display designed with an idea as a selling theme to stimulate the interest of the
customer.
Trade discount
A reduction in list price given by vendors to volume purchasers.
Trading post
A place where trade may be carried on, by barter or cash, usually in a sparsely
populated area.
Trading up
Selling where the salesperson persuades the customer to buy a more expensive
item or a larger quantity than originally intended.
Trunk show
Vendors present their merchandise directly to store personnel and/or customers
in the store.
Definition: The Universal Product Code is a standard for encoding a set of lines
and spaces that can be scanned and interpreted into numbers to identify a
product.
General Use: Scanning, item level inventory and identification. UPC-A is the
most common barcode used in retail product marking in North America.