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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 retailers 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.
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 a shops customers 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.
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, eg. 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
Impulse Purchase
Products that people purchase without planning for it, such as magazines or candy bars
Independent
A 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 Shrinkage
Involves 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.
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.
Loss Leader
Merchandise sold below cost by a retailer in an effort to attract new customers or stimulate other
profitable sales. Loss leaders are restricted by state minimum-price laws.
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.
Logistics
The total process of moving goods from a manufacturer to a customer in the most timely and cost-
efficient manner possible.
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 prices received for merchandise sold during a time period less merchandise cost,
expressed as a percentage.
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.
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 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.

Merchandise Available for Sale


Equals beginning inventory, purchases, and transportation charges.
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.
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
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