Anchor stores

Anchor store(also referred to as draw tenant) is one of the larger stores in a . It, as the name suggests, is the store that is expected to work as an anchor for the mall or draw footfalls – that would ultimately lead to business for all the other stores in the mall as well. It is usually a department store or a major retail chain. Grocery stores are the most common type of anchor store, as they are frequented often and the customers do not switch grocery stores very frequently. However, as per global research on consumer behavior, most trips to the grocery store do not result in visits to surrounding shops. Increasingly, malls are looking at more than one anchor store.

Layaway

Layway is the act of storing a merchandise for a customer to purchase at a later date. The merchandise is stored against payment of deposit.

Minimum Advertised Price

A specified amount is decided by the supplier and resellers are not allowed to advertise prices below that amount. Minimum advertised price can include resellers retail price.

Markup

Percentage added to the cost to get the retailing selling price is known as markup

Markdown

Markdown is the planned reduction in the selling price of an item. Usually it is for a limited period of time - either for a limted period of time or at a specific date

Margin

Margin is the amount of gross profit made when an item is sold

Marketing Calendar

Marketing calendar is a tool used not only by retailers but also other businesses. This tool shows which events are happening, in which location and on which dates

Merchandise Mix

Merchandise mix also known as product assortment, indicates the total range of products carried by retailers

Mystery Shopping

Mystery shopping indicates shoppers (generally hired by the senior management of a retail organisation or a reseach company) who shop in a store/multiple stpres ad record their expereinces. The scores are then used for improvement of weak aeas.

Operating Expenses

Not a retail term, it is used in all businesses and indicates sum of all expenses used for running a business

Odd-Even Pricing

Odd-even pricing is a type of psychological pricng that shows that buys are more sensitive to certain ending digits

Open-to-Buy

Open-to-buy merchandise is the merchandise that has been budgeted for a certain period of time and is yet to be ordered

Planogram

Planogram is an architectural term. It is a diagram or drawing of store's layout. It includes placement of products and product categories.

Profit Margin

Profit margin measures how much of every rupee of sales does a retail business actually keep in earning. It is calucalated by dividing earnings by revenues

Product Life Cycle

Product life cycle (PLC) is all about stages a product goes through from the launch stage onwards. Four stages of PLC are introduction, growth, maturity and decline

Private Label

Private label is a product manufacatured by retailer and sold in his own stores. In many cases retailers tie-up with small manufactureres to manufacture a product to be sold solely in their stores

POS

Point on sale is used for advertiisng or promotions done at a store. The term is also used for that area of store where the customers can pay for their purchases

Product depth

Product depth, also known as product assortment and merchandise depth, indicates tolal number of each item or particular style of a product available in a shop

Product Breadth

It indicates variety of product lines a retailer offers

Point-of-Purchase Display

Point of purchase (PoP) displays are promotion or advertising of a product at retail outlet. These PoP displays are generally used next to the products. The merchandise being promoted is usually displayed near th payment counter or near the entry of a store

Quantity Discount

Quantity discount is given directly in proportion of the purchases made. More the customer buys, lesser the price per unit in case of quantity discount

Retailing

Retailing is selling of products to the end users in small quantities.

Sales Floor

Sales floor is that part of the store where goods are displayed and sales transactions take place. To put it simply , the part of the store that is accessible to the end customers is known as sales floor

Shoplifting

Shoplifting in retail terms means takng the merchandise offered for sale in a store without making a payment for it

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.

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. Demand for these products does not not change much with fall and rise in prices. However, these products generally do not have a high profit margin.

Trade Discount

A discount on the list price given by a manufacturer or wholesaler to a retailer.

Trade Credit

Trade credit is an open account that a retailer has with supplier of goods and services

Wholesale

Sale of goods in a large quantity to retailers for reselling is caled wholesale

Word-of-Mouth

It is recommendation by a satisfied customer. It is one of the most effective ways of marketing and viral - so spreads very fast. It is far mosre efective than advertising and promotion because people trust word-of-mouth more.

Bins

Bins are containers or fenced shelving for displaying merchandise

Building a display

Building a display is arranging and putting together merchandise or sample product.

Cross merchandise

Mixing merchandise from several different departments on one merchandise display.

Cash register

Cash Register is machine that records customer transactions. These are used to record, total, accept payment and make change for customer transactions.

Cash-on-delivery

Cash-on-delivery is when the customer pays for merchandise when it is delivered, instead of upfront.

Catalogue

A catalogue is a collection of items for sale, usually with descriptive details, arranged in an electronic listing or paper pamphlet or book. These are used to facilitate product orders, either by a retailer from a vendor, or by a customer from a retailer.

Same-Store

Same-Store or Comp Store, is a store, or group of stores, open for a year or more. These are generally used for historical comparison purposes, because there is more than one year's data available to compare.

Computerized Inventory System

A Computerized Inventory System is a computer program that tracks inventory and sometimes creates automated replenishment orders.

Booking Program

A vendor booking programme provides an oportunity to view new products and samples. Retailer can look at products at an earlier date - and place an oder for delivery of that merchandise at a later date.

Break-Even Point

Break even point is the point of no profit and no loss. This is the point where sales equal the expenses. A break even point is usually estimated before a business is set up

Business Plan

No business is started/should be started without a business plan. A business plan is a detailed document describing the financial and operationa objectives of a company. In retail, a business plan needs to clearly specify the kind of retail - in terms of products, size of the outlets and pricing , target group it wants to attract in addition to other things

Brick and Mortar

Brick & mortar means a store with a physical presence. As opposed to it are virtual stores that are present on the net. These days, most retailers have a brick and mortar presence as well as an online store.

Bill of Lading

It is a receipt given to the shipper or sender of goods by a transport company or carrier. It is an acknowledgement of shippment being received by the carrier.

Cash Discount

Cash discount indicates a percentage reduction in price

Coupon

A coupon is a printed slip offering a certain discount which can be redeeemed when purcahsing goods & services for a specific retailer. These coupons sometimes offer a discount on all the products - while sometimes they can be used for purcase of specific products only - or while buying products above a certain price point/total bill.

CRM - Customer Relationship Management

Focus of customer relationship management is on increasing customer satisfaction & delight and thereby increasing customer loyalty. Happy and loyal customers are the biggest contributors to sales and profitability.

Category Killer

Category killer, as the name indicates, is a retail chain store that is very dominant in its product category. It has a vast selection of merchandise in its specific category and the prices are so low vis-à-vis competition that smaller retail outlets and chains find it difficult to compete

Cost of Goods Sold

The price paid for the product, plus any additional costs necessary to get the merchandise into inventory and ready for sale, including shipping and handling.

Chain Store

Chain store is one of a number of retail stores under same ownership. These stores are spread across a city alone or an entire country or even various countries. The chain stores usually have the same name whereever they set shop.

Cash Flow

Cash flow indicates availability of cash. This, in turn, is an outcome of movement of money in and out of a business.

Comp Sales

Comparable-store sales or comp sales, as it is commonly known, is used to compare sales of retail stores that have been in business for a year or more. It is a measure of productivity in revenue. Historical sales data allows retailers to compare revenues on a year-on-year or month-on-month basis.

Digital Signage

digital signage, in simple terms, means signage that uses modern technology as against the traditional signage earlier used by retailers and brands. Digial signage is far more attractive, targetted and interactive than the traditional signage with static images and messages.

Facing

The number of similar products (or same SKU) facing out toward the customer. Facings are used in planograms and when zoning a retail store.

Gross Margin

It is the difference between price of a merchandise and the price at which it sell

Hardlines

A product line largely consisting of merchandise such as hardware, housewares, automotive, electronics, sporting goods, health and beauty aids or toys.

Inventory

Available merchandise with a retailer is known as inventory. Inventory taking refers to taking stock of available merchandise or supplies.

Inventory Turnover

Inventory turnover is an important indicator of a retailer's success. It refers to the number of times average inventory on hand is sold and replaced during a given period of time.

Kiosk

Kiosk, in retail terms, is a small stand-alone structure used as a point of purchase. Kiosks are usually found in high footfall locations like malls. It can be a full fledged retail store in small format, or alternatively it can be a stall just providing information and showing demos.

Ketstone

Ketstone pricing method refers to selling of products

Loss Leader

Loss leaders is specific merchandise that is sold at lower than the cost by retailers. Purpose of this strategy is to attract customers to the stores - who might end up buying products and merchandise that is profitable to the retailer.

Loss Prevention

Loss prevention refers to action taken to reduce the amount of theft and shrinkage within business. Loss prevention is very critical is retail as hrinkage leads to heavy losses for the retailer

Visual merchandising

Visual merchandising, as the name denotes, is all about creating visual displays and arranging merchandise assortments within a store. The purpose is to increase footfalls and sales by improving the layout and presentation and making it visually appealing. The stores increasingly focus on impulse purchase and ease of navigation for the customer while working on the visual merchandising aspect. Window display itself has become a science now, and a lot of thought goes into what kind of mannequins to use and where to place them!

Destination store

Destination store can be defined as a store to which a consumer usually makes a special trip to purchase a specific product. The rate of conversion from footfalls to actual purchase is comparatively higher in destination stores.

Private label

Private labels are also called store brand or house brand. A brand that is owned by the product's reseller rather than by its manufacturer. In rare instances, the reseller may be the manufacturer as well. They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands.
The term is often associated with (1) advertised brand versus unadvertised brand (a private brand is most often unadvertised). However, the concept is changing and globally retailers have started advertising private labels too. and (2) national brand versus regional brand or local brand. Here as well, there are retail players that have taken their private labels national successfully.

Gross Margin Return On Investment

It is a measure of inventory productivity. It expresses relationship between money you invest in inventory, total sales and gross profit margin earned on sales

Forward stock

Merchandise that is kept on the selling floor

FIFO

First in, first out; method of stock rotation in which the goods that were received first are sold first

Loss leaders

Loss leaders are goods or services offered at heavy discounts to attract customers to a store. They generally sell below cost and the stores make money on other purchases that the customers make when they come to buy loss leaders. The strategy has been used by the retailers, specially big box retailers very successfully.

Contribution Margin

Contribution margin indicates the difference between total variable costs and the total sales revenue. It is generally expressed as a percentage and is applied to a product line.

Destination retailer

Retailer to which customers will make a special trip, even if it entails going out of their way