GLOSSARY OF RETAILING TERMINOLOGY

Here iscommonly used industry terminologywhich you may encounter during your research. We recommend
reading the list to get familiar with them if you have never done the project, but you may reference as needed.
This glossary not only serves as a refresher to number of retail terms, but as an indicator of what the retail
universe is most concerned with. They are organized not alphabetically, but categorically. Terms here should be
used in reports to more closely align with the retail industry and reference things in a way that indicates the
retailing context. If you find a word which is unfamiliar and not included, do not be afraid to come to the retailing
team with a question, and if it is indeed important, it will be added later.

Retail Organisation

Channels Competitive space retailer plays in, usually designated by product being sold,
but size, format, and price point come into play as well.

Please note: Other Euromonitor industries have product categories, but

retailing has channels. It is the hypermarket channel or the electronic and
appliances specialist channel.

Multichannel Retailer
This is a company that sells directly to the public via more than one
distribution channel. Typically, a multichannel retailer begins with a traditional
store format before expanding into a new retail channel. Although store-
based retailers moving online represent multichannel retailers, any company
that operates in more than one channel can be described as a multichannel
retailer. The challenge for retailers following a multichannel strategy is for
seamless integration of the different channels.

Banner/ retail banner Store name/brand: basically the name over the door of a store. E.g. Tesco
Express, Tesco Metro, Tesco Extra and Fresh and Easy are all banners
operated by Tesco Plc.

Suppliers The preferred terminology for all product manufacturers (e.g. Procter &
Gamble, Unilever, etc). that sell their goods to retailers for sale in the retailers
stores.

Same store sales Like-for-like sales. A comparison of sales for the current financial term with
sales for the previous financial term taking into account only those stores that
have been open for one year or more.

Shopping centre / Purpose-built shopping precinct with car park and a range of large stores and
shopping mall / strip mall specialist shops. Can refer to large indoor, multi-levelled buildings or wider,
outdoor complexes. Shopping centre is the blanket term, while shopping mall
tends to refer to the former and strip mall the latter.

Independent A retailer owning and operating one or more (but fewer than ten) retail outlets,
mainly family businesses or partnerships.

An exception to this is where a multinational retailer owns fewer than ten

stores in a given national market. This would be counted as a multiple.

Chain store/ Chained/ Retail companies operating a number of branches under the same retail
Multiple banner.Branches may be owned by corporate, cooperatives, franchises or
other affiliated retailers. The number of branches required to be termed a
multiple varies from country to country but is usually ten or more.

Please note: If a major multinational multiple is operating in the country, this

should be treated as a multiple, even if there are fewer than ten outlets.
Franchising (in retail) A franchise is the agreement or license between two legally independent
parties which gives a person or group of people (franchisee) the right to
operate outlets under the retail brand of another business (franchisor).

The franchisor: owns the retail brand (eg IKEA, Family Mart), provides
support such as advertising & marketing, training and (sometimes)
financing, in exchange for fees and/or a percentage of sales
The franchisee: operates stores under the retail brand, expands the
network with the franchisors support and pays fees and/or a percentage of
sales

Please note: Euromonitor requires total sales for a brand to be included.

Therefore, both sales generated by franchise stores plus company owned
stores will need to be recorded under the GBO of the company franchising its
brand

Cooperative A retailers' cooperative is a type of cooperative which employs economies of

scale on behalf of its retailer members. Retailers' cooperatives use their
purchasing power to acquire discounts from manufacturers and often share
marketing expenses. It is common for locally owned grocery stores, hardware
stores and pharmacies to participate in retailers' cooperatives.

Buying group Joint purchasing organisation comprising a number of independent retail

establishments. It provides the benefits of centralised buying for its
associates and members. Services may include product testing, buying
negotiations and organisational services

Affiliated retailer/ An independent retail establishment, linked to a central buying organisation.

Integrated retailer Includes voluntary chains, symbol groups, buying groups, and franchised
outlets. Also called integrated retailers

Symbol group Symbol group is a mainly British term for a form of franchise in the retail
sector. They do not own or operate stores, but act as suppliers to
independent grocers and small supermarkets and produce stores which then
trade under a common banner.

Unlike other forms of franchise, they have expanded primarily by selling their
services to existing stores, rather than by actively developing new outlets.
SPAR is a well-known symbol group with stores in many countries. There are
several smaller symbol groups in the United Kingdom, such as Londis,
Costcutter, Premier and Nisa Today's.

Symbol groups should be tracked within our data provided they are of a
significant size.

Voluntary chain Wholesaler-owned buying organisation distributing basic commodities -

especially food - to smaller retail outlets. Affiliation to such a group (also
known as a "symbol") permits the small trader such as the local grocery shop
to buy at better prices, and benefit from a corporate image and joint
advertising.

In-store strategy

Merchandising/ The assortment of products and product types that a retailer stocks and sells
Merchandise Mix/ Product
Assortment/ Product Mix
Brand assortment/brand The group of brands that a retailer stocks and sells
mix

Category Management The optimization of product assortment in stores and how products appear in
(Cat-man) aisles and on shelves. Primarily concerned with shopper insights and how
products, pack sizes/types, prices, placement, and promotions get people
into the store to buy a particular item. The ultimate goal of a category
manager is to make their product attractive enough that people come into the
store just for it. Very tactical, focused, and dynamic component of retail. This
is a very important part of retail strategy for retailers and suppliers alike, and
has its own language and terminology. See the following site for more
http://www.igd.com/Category_Management_Glossary

In-store activation One aspect of category management. All initiatives used at the point of sale
to influence a shoppers decision to buy a product, including assortment size
and variety (by product and pack size/type), pricing, promotional/marketing
materials (signage, coupons, samples, etc), and placement (at the front of the
store, back of store, mid-store, near the cash register/checkout, etc).

EDLP (Everyday low A retailer pricing strategy where products that are continually at low prices.
prices) This is in contrast to rotating sales in which certain categories are marked
down at certain times of the years. Often used by retailers that compete on
price, like discounters.

Fulfilment Rates The rate at which retailers keep their shelves and displays stocked. This is
becoming more important as smaller format, more urban shops attempt have
less space for inventory and management of said inventory becomes more
complex.

Inventory Reduction A retailer strategy for minimizing surplus inventory to reduce the cost of
storage, spoilage, and shrinkage. This is becoming more important as smaller
format, more urban shops attempt have less space for inventory and
management of said inventory becomes more complex.

Radio Frequency Product tagging and logistics system which allows retailers to track the
Identification (RFID) movement of goods at all stages of the supply chain.

Outlet Type

Business to Consumer An entity registered as a business with the government paying the
Retailer(B2C) appropriate taxes for its business model selling to a consumer.

Consumer to consumer A seller not registered as a business selling to a consumer.

retailer (C2C)
Please note: These business and sales of this nature from primarily C2C
retailers should not be included in data.

Business to An entity registered as a business with the government paying the

businessretailer (B2B) appropriate taxes for its business model selling to another business.

Please note: These business and sales of this nature from primarily B2B
retailers should not be included in data.

Multi-brand retailer Retailer that sells a number of different brands regardless of product type.
Most retailers are multi-brand retailers particularly if they are not specialists.

Single-brand retailer Retailer that only sells products under a single brand, e.g. Nike Stores
Specialist/speciality Stores specialising in a particular type of merchandise or single product
retailer/ niche retailer which may be food or non-food.

Informal retailing Informal retailing is retail trade which is not declared to the tax authorities.

Informal retailing encompasses (a) sales generated by unregistered and

unlicensed retailers, ie retailers operating illegally, and (b) any proportion of
sales generated by a registered and licensed retailer which is not declared to
the tax authorities.

Unregistered and unlicensed retailers operate predominantly (although not

exclusively) as street hawkers or using open market stalls, as these channels
are harder for the authorities to monitor than permanent outlets. Note,
however, that not all street hawkers or open market stalls are informal.

The size and importance of informal retailing will depend on many factors that
contribute to the general business climate in any given country, such as the
extent of government control, regulation and level of corruption.

Activities in the black market, which is usually understood to refer to trade in

illegal, counterfeit or stolen merchandise, are included within our definition of
informal retailing.

Activities in the grey market, which is usually understood to refer to trade in

legal merchandise that is sold through unauthorized channels for example
cigarettes bought legally in another country, legally imported, but sold at
lower prices than in authorized channels will be included as informal
retailing if no tax is paid on sale by the retailer. However if the retailer pays
tax for example on cigarettes bought legally in another country but sold at a
lower price than standard the sale is included within formal retailing.

Please note: Sales generated by informal retailing are excluded from

Euromonitors Retailing sales figure.

Duty free (also called Sale of goods (typically drinks, tobacco, cosmetics and luxury goods) in duty-
travel retail) free areas accessible only with a boarding card (often at airports or on board
ships), net of purchase taxes levied in a particular country.

Please note: Sales generated through duty free outlets are excluded from
Euromonitors Retailing sales figure.

Semi-Captive Retail Stores that are available to anyone, but require some limiting purchase or
authorization to access, typically a ticket. Includes but is not limited to
airports, sporting events, and theme parks.

Please note: Sales generated through semi-captive outlets are excluded from
Euromonitors Retailing sales figure.

Big Box Stores Large stand-alone stores which sell a large array of products in different
category. Stores usually have edge of town or out of town locations for large
parking lots.

Category killer Term referring to specialist superstore outlets larger than those in the existing
sector which offer a greater competitive advantage in the depth of product
offer and pricing. Price advantage is generally based on economies of scale,
buying power and a rigorous attention to costs. Typically are big box stores.
Superstore Store with a sales area of at least 2,500 square metres. Generally devoted to
non-foods, e.g. large hobby shops

Cash and carry Wholesale outlets, generally selling to business customers. Customers
generally need a membership card and evidence that enables them to shop
there (VAT or business number for example) to gain entry to or make
purchases in the store

Please note: Sales generated through cash and carry outlets are excluded
from Euromonitors Retailing sales figure, however B2C sales in Atacadejo
outlets in Latin America are included in warehouse clubs

CTN The abbreviation stands for confectioner, tobacconist and newsagent. It is

usually a small store selling primarily newspapers and magazines, tobacco,
products confectioneries drinks and other impulse food items.
Please note these are included in Other grocery retailers.

Superette Self-service food outlet with a selling space of up to 400 sq metres.

Concession/ store-within- Arrangement by which a retailer places a selling unit within a larger store, e.g.
a-store a department store.

Please note:Concessions are not separate stores and so concessions should

not be double counted within the specialist channel in which they operate. For
example, an apparel specialist retailer in a department store is not counted as
a separate store.

Pop-up retail Pop-up retail, also known as pop-up store, is the trend of opening short-term
sales spaces. The trend involves popping-up one day, and disappearing the
shortly thereafter. These stores, while small and temporary, can build up buzz
by consumer exposure.

Stores are intended less to drive profitable sales than to promote demand for
the goods and thereby produce profitable business at other locations, or in
channels other than walk-in stores. Most pop-up stores function as marketing
devices to drive brand awareness and sales to more established store or
channels, but some are built to test local demand for potential future
expansion, however this is often still secondary to the marketing component
of these stores.

Fixed-price stores / single
price-point stores
Also called dollar stores, pound shops, 99 stores stores which offer a
variety of goods at a single price across the whole store (primarily non-
grocery, but some grocery products mainly dry goods can also be
present). Some stores may have more than one price point (eg $1 and $2, or
$1 and $10) but these should be limited in number. Fixed-price retailers are
listed within the Variety stores channel.

Off-price retailers
Retailers that make use of excess supply (e.g. production overruns, cancelled
orders, excess off-season inventory) to sell name brands at a reduced cost to
consumers. What these stores lose in margin thanks to markdowns, they gain
by turning over a greater volume of product on a regular basis which helps
create a treasure hunting shopping experience. Sometimes these brands
are off-shoots of well known, more upscale banners (e.g. Nordstrom and
Nordstrom Rack). Mostly limited to apparel and footwear specialists and
department stores, but not exclusively so.

Please note: This does not include outlet malls, which are similar but often
distantly located from major shopping districts.
Off-licence Retailers Retail outlet selling alcoholic drinks for consumption off the premises as its
primary focus. Also includes retailers which operate without stores such as
via direct selling or over the internet.

General store Term generally used for small, rural shops selling a wide ranging mix of
grocery and non-grocery goods.

Market Temporary sales establishment usually of a traditional nature, located in

street areas. Frequently utilized by a number of merchants.

Self-service store Covers any type of store selling by self-selection. Usually staffed with
cashiers at check-outs. A noted uptick of automated self-checkout stations
are being used more and more.

Internet Retailing

Pure play retailer/ pure Retailers which sell only through the internet, such as Amazon
online retailer

Bricks-and-Clicks Retailers that sell through both stores and over the internet.
Retailers OR Clicks-and-
Mortar

Omnichannel ( also A specific form of multichannel strategy, where retailers attempt to unite
spelled omni-channel) store-based and internet-based shopping. Encompasses all channels
managed by the retailer, including retail stores, online stores, mobile stores,
mobile app stores, and any other method of transacting with a customer.
Emphasis is put upon providing the customer with a seamless shopping
experience, regardless of where it starts and ends.

It is important to note that the retailer owns each channel. When an online
company decides to work with other merchants for sales, thats a 3rd party
merchant strategy.

Online-to-offline An omnichannel strategy where the goal is create product and service
commerce (O2O) awareness online, allowing potential customers to research different offerings
and then visit the local brick-and-mortar store to make a purchase, where
profits are typically higher, service is hopefully better, and impulse purchases
are more likely.

Specific strategies include in-store pick up (buy online pick up in store),

allowing items purchased online to be returned at a physical store, and
allowing customers to place orders online while at a physical store.

Click & Collect / Buy- This is a service offered by some omnichannel retailers, where orders are
Online-Pickup-In-Store placed online and collected from stores.
(BOPIS)
Please note:If the order was paid online, sales are included in Internet
Retailing, if it was only reserved online but paid and collected at a store then
sales are included in Store-based Retailing.

Online Marketplace Selling platform in which 3rd party merchants or individual consumers can
sets up an online shop via another larger brands platform (e.g.
Amazon/Ebay/Tmall).

Please note: For Euromonitors purposes we only track merchants which are
registered with the government as an official business. Additionally, those
 sales will be tracked under the online marketplaces internet sales in 3rd party
merchants.

Take rate The amount of the sales value of the transaction that the online marketplace,
takes from the totalsale. For example, if the ecommerce company sells a
US$100 shirt and the take rate is 30% meaning that the company takes $30
from that transaction.

It can also be called a commission.

Fulfilment The process that takes place to ensure a product reaches the buyer. It can
include packaging, labelling, moves within warehouses and delivery methods.
Applies to in-store as well, but is used increasingly to refer to online delivery.

M-commerce Internet retailing via wireless devices such as smartphone, PDA, or tablets.
Please note that the standard term used in the retailing analysis is Mobile
internet retailing

Showrooming The process of viewing an item in-store only to receive more information on
said product and then purchasing the item digitally (online or mobile)

Webrooming The process of viewing an item online only to receive more information on the
product to purchase it in a store.

Shopper& Marketing Related

Shoppers/Customers The preferred terminology for all potential retail customers, as opposed to
consumers.

Shopping mission The goal or goals for a trip to the store (offline or online)

Path-to-purchase The entire process which a shopper goes through that culminates in the final
purchase of a particular good, from beginning to end. Takes into account
shopper mind set, habits, retail experience and everything else involved in
purchasing decision.

Footfall Consumer traffic. The number of consumers entering a store in a given time
period, regardless of whether they make a purchase or not.

Top-up trips Smaller shopping trips that are used to replace everyday items in an as-
needed fashion. Used to supplement and extend time needed between
larger weekly/bi-weekly/monthly shopping trips.

POS Point of sale. Sometimes refers to final transaction between shopper and
retailer where purchase is made. Sometimes refers to electronic terminal
which is used to conduct and record this sale.

Direct marketing This is a form of advertising that reaches its audience without using traditional
formal channels of advertising, such as TV, newspapers or radio. Businesses
communicate straight to the consumer with advertising techniques such as
fliers, catalogue distribution, promotional letters, and street advertising.

Please note: Analysts should not confuse this with Direct sales.

Infomercials Similar to TV shopping, but likely to appear during empty air time on channels
not normally geared towards TV shopping. Infomercials are longer than
commercials - typically 30 minutes or more.

Loyalty Programs Shopper-centred programs that serve as a touch point for retailers and allow
 shoppers to get discounts or rewards (sometimes personalized) for each visit
and purchase that they make. Often provides retailers with valuable
consumer data as well which allows them to better understand how people
shop and what they are looking for.

Loss leader Merchandise sold below cost by a retailer in an effort to attract new
customers or stimulate other profitable sales. Note that this may be illegal in
some market.

Merchandise Types

Grocery products Grocery includes all products regularly found in grocery stores, which
includes all food and drink and a variety of everyday non-food items. Typically
thought of as consumables or commodities.

Includes Fresh food, Packaged food, Hot drinks, Soft drinks, Alcoholic drinks,
Tobacco, Beauty and Personal Care, Tissue and Hygiene, Home Care,
Consumer Healthcare and Pet care.

Non-grocery products Grocery includes all products that are purchases less frequently than
groceries and as such are normally found in more specialized stores.
Includes some non-food products which can also be found in grocery stores
and specialty stores alike.

Includes: Tobacco, Beauty and Personal Care, Tissue and Hygiene, Home
Care, Consumer Healthcare, Pet care, Apparel & Footwear, Consumer
Appliances, Consumer Electronics, Personal Accessories & Eyewear, Home
and Garden, and Toys and Games

Hardlines A non-foods product line primarily consisting of durable merchandise such as

hardware, housewares, automotive, electronics, sporting goods, health and
beauty aids or toys.

Softlines A non-foods product line primarily consisting of softer merchandise such as

clothing, footwear, linens, and jewellery

Private label / Own Goods produced directly for (and sometimes by) the retailer and marketed
brand / Retailer-owned with varying levels of retailer brand identity. See also fantasy brands.
brand
Please note: Such brands should be referred to as Private label in reports.

Fantasy brands Private label goods produced directly for (and sometimes by) the retailer, but
marketed as a normal brand with no obvious connection to the retailer. See
also Private label

Please note:Such brands should be referred to as Private label in reports.

RETAIL ROLES BY DEPARTMENT
Understanding the organizational structure of the retail world not only can help you prepare for trade
interviews, but allows for a greater understanding as to how retailers view themselves and their priorities. Utilize
this list to help create a more tailored list of questions for trade interviews once you figure out your targets and to
better understand how retailers organize their human capital.

Strategy: Responsible for charting the course of the company in the long term.

Finance: This group can work closely with strategy on developing 3 -5 year strategy plans.

Consumer insights/market research: The library of the company, filled with insights into consumers,
competition and overall trends.

Stores: Responsible for aspects of the physical stores, such as operations, sales, human resources, marketing,
real estate, inventory. This is usually a VP level position.

E-commerce/M-commerce/Omnichannel/Digital: Responsible for strategy and executive of digital strategy (e-

commerce, m-commerce, omni-channel although these can be separate divisions). Other responsibilities include
digital marketing, user experience, and product development. Aim may be to unify the offline and online
strategies.

Brand Strategy/Management: Responsible for bringing the brand to life in all customer touch points for the
retailer in a consistent manner. This role usually entails big picture thinking and determining how the brand
should evolve over time. However, this division can overlap or be the same as the marketing division.

Marketing: Responsible for the tactical implementation of the brand strategy by managing the advertising of the
brand as well as public relations and corporate communications. In particular, for marketing, the division is
responsible for promotions throughout the year and how to spend the marketing budget in different channels.
Again, this role/division can set the overall brand strategy as well.

Marketing Manager: Uses consumer statistics to develop promotional strategies to meet financial targets. May
also be responsible for how the marketing budget is spent and can have a special emphasis on in-store
marketing. Lower level in the marketing division.

Divisional Merchandise Manager: Responsible for entire departments. For example, a retailer has a buyer for
TV and another buyer for Audio and a third buyer for source material (DVD, etc). There would be a merchandise
manager over those three buyers. The Divisional manager would be responsible for all consumer electronics
products. Each product line would have one.

Merchandise Manager: Responsible for the profit or loss for a certain product category. Makes product
purchasing decisions or manages a team of buyers who make those decisions. The buying decisions can be
made across channels. Overall, the merchandise manager looks at market trends, sales data and other
information to determine the appropriate product assortment. The manager can also coordinate private label
efforts. Manages relationships with vendors. A merchandise manager usually has some approvals in place for
overall assortment and in physical stores and is involved in space planning (ie how much space in the
electronics section goes to TVs vs. video games, as these are different buyers sections). The merchandise
manager is trying to maximize the revenue and ultimately profit per square foot of their department (ie. home or
electronics, etc)

Buyer: Reports into a Merchandise Manager. The buyer is responsible for purchasing the product and the
process that entails. It includes financial planning to hit targets and negotiating costs and terms with vendors.
The buyer also needs to manage inventory and recommend markdowns based on sales and inventory data.
Overall, the buyer keeps abreast of trends to ensure that the company has the correct products at the correct
price.
Supply Chain Manager/Analyst: Responsible for the planning and execution of delivery of goods from factories
to the retail floor. Works with other positions such as buyers, merchandise managers and marketing to ensure
that the retailer has enough supply at the right price to sell.

Operations Manager: Typically manages several retail locations. Analyses inventory and sales data to drive
growth at retail locations.Responsible for quality of the stores.

General Manager: Responsible for a retail outlet. Plans store layouts and displays to promote products.
Strategizes to meet stores sales strategies based on sales and inventory data.