A big box retailer is a physically large store, typically part of a chain, occupying 50,000-200,000 square feet of single floor space and selling either general merchandise or specialty products. Examples include Walmart, Target, The Home Depot, Lowe's, Best Buy, and Circuit City. These chains often operate nationally and are increasingly expanding internationally.
Big-ticket items refer to retail products that carry a substantial size and price, often requiring customers to purchase them on credit. These items typically include large appliances and automobiles.
A business model that utilizes both online and offline operations, integrating e-commerce with physical stores for a seamless customer experience.
A broken lot refers to an incomplete set of merchandise, often resulting from damage or improper packaging.
A buyer is an individual or entity that purchases goods or services. Buyers can be categorized into various types based on their role and the nature of their purchasing activity.
Cash float refers to the notes and coins held by a business to ensure they can provide change to customers during transactions. This concept is essential for efficient cash management and smooth operational flow in day-to-day transactions.
A transaction requiring that goods be paid for in full by cash or certified check at the point of delivery. Also known as Collect on Delivery with the same abbreviation.
A cashier is a person in a business who accepts payment in money and credit sales, provides change as needed, and records the transaction, generally assisted by a cash register.
A chain store is an individual retail store that is a part of a group of similar retail stores managed and owned by the same entity, providing consistent products, services, and branding across multiple locations.
A business model that integrates both online (e-commerce) and offline (physical premises) modes of operation to enhance customer experience and expand market reach.
Closed stock refers to merchandise sold only in complete sets, where individual items from the set cannot be purchased separately, and there is no guarantee that replacements will be available in the future.
Clearance or closeout sales typically involve selling off inventory at reduced prices, often to free up retail space or discontinue specific product lines.
COD or 'Collect on Delivery' is a financial transaction where payment for goods is collected at the time of delivery rather than at the time of purchase. This term is often used interchangeably with 'Cash on Delivery'.
Comparison Shopping is the process whereby a consumer gathers as much information as possible about particular products and services for comparison before purchasing them. It involves visiting stores, comparing advertisements, and conducting related research.
A convenience store primarily trades on the convenience it offers to customers. The products stocked may be influenced by local tastes or ethnic groups, and the stores often have extended hours and are conveniently situated in residential areas. They are often part of a chain.
A credit card is a plastic card issued by a bank or finance organization allowing the holder to make purchases in shops, hotels, restaurants, petrol stations, etc., on credit.
Dead stock refers to inventory that remains unsold for an extended period. This unsold inventory can result from factors such as changing consumer preferences, overstocking, or product obsolescence. Businesses often seek to identify and manage dead stock effectively to minimize storage costs and free up capital for more profitable inventory.
A large retail establishment offering a wide range of consumer goods in various product categories known as 'departments.'
A retail store offering a broad range of merchandise similar to department stores but at lower prices, often focusing on budget-conscious consumers.
A distribution centre is a specialized warehouse typically operated by manufacturers to handle the bulk receipt and dispatch of goods to retailers.
Drop-Shipping is an e-commerce model where retailers sell products without storing them in their own inventory. Instead, customer orders are fulfilled directly by the supplier who ships the products directly to the end customer.
Dry goods encompass fabrics, textiles, and clothing made from various materials such as cotton, wool, rayon, and silk, including ready-to-wear clothing and bedding.
Eating a competitor's lunch refers to aggressively outperforming and gaining market share from competing firms through strategies like aggressive pricing, superior product offerings, or enhanced customer service.
An inventory decision model used to calculate the optimum amount to order, balancing the fixed costs of ordering and receiving against the carrying cost of inventory and sales. Utilized in both manufacturing and retail inventory management.
An emporium originally referred to a marketplace serving more than one merchant. Today, it is generally used to describe a large store containing a wide variety of merchandise.
Forward stock refers to the merchandise carried in the selling areas of a retail store that is not accessible to the patrons, for items that require protection or controlled access, such as perfume, jewelry, and cameras.
Inventory shortage, also known as shrinkage, refers to the unexplained difference between the physical count of inventory and the amount recorded in accounting records. This discrepancy can be due to various factors, ranging from normal evaporation of a liquid to theft.
An independent stand from which merchandise is sold, often placed in the common area of shopping centers.
A mall is a public area that connects individual stores within a shopping center, generally enclosed for a convenient and climate-controlled shopping experience.
The amount by which the cost of a service or product has been increased to arrive at the selling price. It is calculated by expressing the profit as a percentage of the cost of the good or service.
Goods and commodities sold at the retail level. Merchandising is the buying, presenting, and selling of merchandise, including related activities like advertising, displaying, and promoting them to retail customers.
A merchandise allowance is a sum of money provided or allowed for merchandise returned due to poor quality or overstocking.
Merchandise Control involves the systematic process of collecting and evaluating data on all aspects of each retail merchandise category, including sales, costs, shrinkage, profits, and turnover. This process helps retailers maintain accurate inventory and optimize their merchandising strategies.
An individual responsible for directing the merchandise sales effort for a manufacturer, retailer, wholesaler, distributor, dealer, or advertising agency.
A small retail store with limited capital, typically employing family members, and often characterized by personalized customer service and unique product offerings.
A National Brand refers to a product that is distributed, sold, and recognized across the country, as opposed to a store brand, which is typically exclusive to the retailer selling it.
A neighborhood store is a retail establishment designed to seamlessly integrate with the surrounding neighborhood, catering specifically to local tastes and needs.
Retailing done without conventional store-based locations. Nonstore retailing includes services such as internet retailing, vending machines, direct-to-home selling, telemarketing, catalog sales, mail order, and television marketing programs.
Off-price stores are retail stores that offer merchandise at prices lower than traditional retail stores. These stores acquire out-of-season products and distressed merchandise from other retailers and manufacturers.
Open distribution refers to the distribution model where the same merchandise can be sold within a specified region or area by different dealers. This model imposes no restrictions on the number of products a dealer can sell, offer for sale, or deliver to retailers, and allows dealers to carry competitive lines.
Open-to-buy (OTB) is a budgetary control system used by retailers to manage inventory purchases. It allows retailers to order merchandise based on actual sales trends while providing flexibility to adjust for unexpected changes in sales, markdowns, and other factors. The OTB method ensures that inventory levels are optimized, reducing the risk of overstock or stockouts.
An Order Number is a reference number used by a wholesaler, manufacturer, or retailer to identify a particular order. This unique identifier helps in tracking and managing orders effectively.
An order taker is a sales representative who primarily receives and processes customer orders without actively promoting or recommending products through sales presentations.
OTB can refer to off-track betting, a gambling practice, or to 'open-to-buy,' a retail inventory management strategy.
An outlet store is a retail store operated by a manufacturer to provide an outlet for selling the manufacturer's irregular, overrun, or end-of-season merchandise. Although it is not always the case, outlet stores are often located close to the manufacturer.
Nonprescription medications that are legally sold over the counter in a retail store. Over-the-counter medicines can be purchased in any quantity without restrictions at the retail store level.
A Point of Sale (POS) is the location where a purchase transaction occurs between a consumer and a business, finalizing the sale of goods or services.
A point-of-sale (POS) system is a combination of hardware and software that allows retail businesses to conduct and manage sales transactions effectively, often replacing traditional cash registers.
A price war occurs when competing companies reduce their prices in a bid to attract customers, often leading to reduced profits and potentially driving some businesses out of the market.
A marketing approach where the seller concentrates efforts on the end user through various promotional activities to create demand at the retail level.
Retailing involves the business practice of selling products and services directly to the public, targeting the ultimate consumer rather than wholesalers or manufacturers.
Selective distribution is a distribution strategy where a manufacturer restricts the number of outlets that can sell its products to those that meet specific criteria. These criteria can include agreeing to sell the product at a minimum price, committing to regular patronage, or meeting other specific requirements set by the distributor or manufacturer.
Specialty selling refers to the direct retailing of items or services that are not commonly found in standard retail stores. Typical examples include encyclopedias, life insurance, and various niche products.
A Stockkeeping Unit (SKU) is a unique identifier for each distinct product and service that can be purchased. It helps in tracking inventory and simplifying sales processes.
A stockroom is an area or room where stock of goods, materials, and other supplies are maintained, often used in commercial and industrial settings for inventory management, storage, and organization.
An establishment used for the purpose of selling merchandise and services, usually at the retail level. Stores range in size from small boutique shops to large modern big box retailers.
A store brand, also known as a private label, refers to products that are manufactured by one company but sold under another company's brand, typically a retailer's own brand name.
A supermarket is a large self-service retail store offering a variety of food and household products, organized into aisles and often operating on a cash-and-carry basis.
A self-service retail establishment that covers a large area and offers a wide variety of goods including food and non-food items such as groceries, electronics, clothing, and more.
A supplier is an individual or entity that provides goods, materials, or services to another organization, typically in a commercial context.
The Universal Product Code (UPC) is a unique number used to identify a product and is translated into barcodes, consisting of a series of vertical parallel bars. This code is primarily used for scan entry by electronic cash registers to streamline product sales and inventory tracking.
A retail store carrying a variety of items in the low and popular price ranges, targeted for the family market, including apparel, women's accessories, gift items, and stationery.
Warehouse clubs are low-price retail outlets that sell annual memberships to consumers and businesses. These stores are typically established in warehouse-type buildings where merchandise is displayed without any frills.
Wares refer to goods or merchandise, often manufactured items of a similar kind, such as glassware. These items are typically sold in bulk or as part of a collection.
In retailing, white goods refer to heavy household appliances originally manufactured with a white enamel finish. These include refrigerators, freezers, washers, dryers, and stoves. Today, the term applies to all such goods, regardless of the color or finish.
A wholesaler acts as a middleman by purchasing large quantities of products from manufacturers and reselling them to retailers or other businesses rather than to the final consumers, enabling the distribution process in the supply chain.
