Glossary of Retail Management

1. 80/20 Rule: The 80/20 rule, also known as the Pareto principle, simply means that
roughly 80 percent of the effects of anything you might be doing come from 20 percent of the
causes. For example, 80 percent of your sales are likely generated by about 20 percent of the
items you carry or services you offer.
2. 10 foot Rule:When a customer is greeted by an employee that they come within a
certain distance of, it is commonly referred to as the “10-Foot Rule”. That is, whenever an
employee comes within 10 feet of a customer, the employee greets the person with a cheerful
hello, or simply makes eye contact, smiles and nods his or her head.
3. Anchor store: One of the largest, if not the largest, retail stores in a shopping centre
or mall. This department store or grocery store helps drive foot traffic, making it a great
neighbour for smaller retailers. Also known as a draw tenant, anchor tenant, or key tenant.
4. Atmospherics:A store's physical characteristics that are used to develop a retail unit
image and draw customers. It describes the physical elements in a store's design that appeals
to consumers and encourages them to buy.

5. Augmented reality (AR): This principle is about supplementing the user’s physical

world with virtual things, so they appear to be in the same environment. In retail it can be
used in shoppable catalogues, apps that let you see in-store deals by using your phone’s
camera, virtual fitting rooms, and more.
6. Automated Vending/Kiosks: It is most convenient to the consumers and offers
frequently purchased items round the clock, such as drinks, candies, chips, newspapers, etc.
7. Bar code: A machine-readable code, which has alternating dark and light bars. The
spacing between the bars signals to the reader what the numerical code is. Bar codes can be
Universal Product Code (UPC) or any other numerical format. Bar codes help you track
inventory going in and out of the store.
8. Backorder: When a specific quantity of an item could not be filled by the requested
date, it’s on backorder.
9. Big-box store: Like the name says, this is a large store that’s usually part of a major
retail chain. Target and Best Buy are big-box stores.
10. Big data: This refers to a massive data set that is so large you would need a
sophisticated program or a data scientist to make sense of it. When you’re looking at big data
 (like census information or tweets), you’re looking to analyze customer behaviours,
demographics, social information, and more.
11. Brick and mortar:Traditional retailing in a physical business location as opposed to
virtual retailing conducted online.
12. Bulk: The classic definition refers to distributing raw materials (such as coal, iron,
and grains) that are stored and transported in large quantities. The term may have a variety of
definitions based on industry. It could mean buying a large quantity of a single item or it
could refer to the storage area for pallets.
13. Bundled pricing: Companies that bundle together a package of goods or services to
sell for a lower price than they would charge if the customer bought all of those goods or
services separately.
14. Card file: According to PCI-compliance standards, unsecured card files are generally
a high-risk way to store and manage sensitive customer information. Learn more
about storing credit cards securely.
15. Card on File (CoF): Square offers CoF as a safe and secure (PCI-compliant) way to
store customer payment information. This is the equivalent of a house account. It rewards
your regular customers by creating a fast and easy checkout experience (whether they are in
person or not). Square offers this feature as part of its POS.
16. Carrying cost: This can also be referred to as a holding cost. It is primarily made up
of the cost associated with the inventory investment and storage cost.
17. Cash on delivery (COD): Goods that are delivered to the store only upon immediate
payment for them to the deliver.
18. Catalogue Showrooms: These retail outlets keep catalogues of the products for the
consumers to refer. The consumer needs to select the product, write its product code and
handover it to the clerk who then manages to provide the selected product from the
company’s warehouse.
19. Chain Stores: When multiple outlets are under common ownership it is called a
chain of stores. Chain stores offer and keep similar merchandise. They are spread over cities
and regions. The advantage is, the stores can keep selected merchandise according to the
consumers’ preferences in a particular area. For example, Westside Stores, Shopper’s Stop,
etc.
20. Chargeback: A chargeback happens when a customer disputes a charge from a
business and asks the card issuer to reverse it. Credit card chargebacks are meant to protect
 consumers from unauthorized transactions, but they can mean lots of time and headaches for
businesses. Learn more about chargebacks and how to prevent them.
21. Chargeback rebuttal letter: If a business wants to refute a chargeback, it might send
a chargeback rebuttal letter to persuade the customer to withdraw the dispute. The letter
would show evidence that the product was in fact delivered or that the service requested was
rendered. Learn more about the kind of evidence you need to defend against non-fraud
chargebacks.
22. Click and collect: This omni-channel feature allows customers who buy an item
online to pick it up in the brick-and-mortar store; it’s also called buy online pick up in store,
or BOPIS. Consumers love the ease and convenience of this feature, which allows them to
avoid shipping costs and wait times. Over 50 percent of customers have used a service like
this according to a JDA software survey.
23. Consumerism: The organized-efforts by individuals, groups, and governments to
protect consumers from policies and practices that infringe consumer rights.
24. Cross merchandising: This refers to the retail practice of displaying products from
different categories together to create add-on sales. You’ve seen this in a grocery store that
puts soda, chips, dip and all the other foods you’d need for a barbecue in one area during the
summer.
25. Clienteling: This term characterizes activities retailers use to build relationships with
their customers. One of the most popular ways to do this is to collect and track customer data
with customer relationship management (CRM) software that can then be used to create
customized communication and shopping experiences.
26. Cloud POS: A cloud POS is a web-based point-of-sale system that lets you process
payments through the internet, rather than on your local computer or servers. Learn more
about the benefits of a web-based point-of-sale system.
27. Contactless payments: Contactless payments are powered by near field
communication, or NFC. NFC-enabled cards or smartphones allow customers to pay for a
purchase without touching the payment terminal — they just need to wave or tap. Mobile
payments, like Apple Pay, are one of the more common types of contactless payments.
28. Consumers Co-Operative Stores: These are businesses owned and run by
consumers with the aim of providing essentials at reasonable cost as compared to market
rates. They have to be contemporary with the current business and political policies to keep
the business healthy.
29. Consumer packaged goods: This describes products that are in a form that is ready
for sale to the consumer. CPGs include non-durable goods like packaged foods and beverages
and other consumables. They are often sold quickly and at a low cost.
30. Consignment merchandise: This is inventory that a retailer does not own or pay for
until it’s sold. In a consignment arrangement, goods are left by an owner (consignor) in the
possession of an agent (consignee) to sell them. The consignor continues to own the
merchandise until it’s sold. Typically the agent, or consignee, receives a percentage of the
revenue from the sale.
31. Convenience Stores: They are small stores generally located near residential
premises, and are kept open till late night or 24x7. These stores offer basic essentials such as
food, eggs, milk, toiletries, and groceries. They target consumers who want to make quick
and easy purchases.
32. Convenience products: These are consumer products that are routinely purchased by
customers, who usually give little thought or planning to them. They often appeal to a large
target market.
33. Cost of goods sold: The accounting term used to describe the total value (or cost) of
products sold during a given time period. Also referred to as COGS, this appears on the
profit-and-loss statement and is used for calculating inventory turnover.
34. CRM: Customer relationship management is an online system for managing
relationships with your current and prospective customers, and stores a directory of their
information online.
35. Customer loyalty: It refers to customer’s belief in retailer’s offer, based on value
proposition resulting in repeated buying behavior.

36. Cyclical Theory: According to him, the new entrant retailers are often into low cost,
low profit margin, low structure retail business, which offers some unique, real benefit to the
consumers. Over some time they establish themselves well, prosper, and expand their
products with more expensive facilities, without losing focus on their core values.
37. Data Warehouse:It is a huge database where all database of a firm are maintained in
one location.
38. Dead stock: Also known as dead inventory, it’s how retailers classify products that
have never sold or have been in stock for a really long time. Sometimes dead stock is the
result of seasonality (people don’t buy Christmas ornaments in May), while other times the
stock just isn’t in demand ever. Also called dead inventory, this is one thing no retailer wants
 to have. You can get rid of dead stock with sales and promotions, or you can avoid it all
together with careful analysis.
39. Departmental Stores: It is a multi-level, multi-product retail store spread across
average size of 20,000 sq.ft. to 50,000 sq.ft. It offers selling space in the range of 10% to 70%
for food, clothing, and household items.
40. DC: This is an acronym for a distribution centre. A distribution centre is a warehouse
or specialized building that stores a set of products to be distributed to retailers (or directly to
consumers).
41. Displays: Consumer products are packaged and displayed with aesthetics while on
display. Shape, size, colour, and decoration create appeal.
42. Drop shipping: This refers to an arrangement between a retailer and a manufacturer
in which the retailer transfers customer orders to the manufacturer, which then ships the
products directly to the consumer. When using a drop shipping method, the retailer doesn’t
keep the products in stock. The order and shipment information is just passed on to the
manufacturer. Sometimes referred to as direct shipping.
43. Durable goods: These are products that can be used daily, but have a long, useful life
expectancy. Examples are furniture, jewellery, and major appliances, such as dishwashers.
44. Dry storage: Though dry storage can have other meanings in different industries, in
warehousing it is typically used to describe non-refrigerated storage of food products, such as
canned and dry goods.
45. E-tailing: Short for electronic retailing, this is the practice of selling products on the
internet. E-tailers range from the very big, like Zappos, to the small, like your local clothing
boutique that also has an online store.
46. EMV: EMV stands for Europay, Mastercard, Visa. The technology is the global
standard for credit cards that use computer chips to authenticate (and secure) chip-card
transactions. Because this technology encrypts bank information, it’s much more secure than
magnetic stripe cards (which hold static information about the card holders). Learn more
about EMV standards.
47. Endless aisle: This is a feature of a brick-and-mortar store that enables customers to
browse and shop a retailer’s entire catalogue. But, instead of stocking up on every item, the
store can provide the entire catalogue through a touchscreen or tablet.
48. Environmental Theory (Natural Selection): It is based on Darwin’s theory of
survival: “The fittest would survive the longest”. The retail sector comprises consumers,
manufacturers, marketers, suppliers, and changing technology. Those retailers that adapt to
 changes in demography, technology, consumer preferences, and legal changes are more likely
to survive for long and prosper.
49. Everyday low pricing (EDLP): This is a pricing strategy that promises consumers a
consistently low price without comparison shopping or a sale.
50. Experiential Retail:Experiential retail or experiential commerce is a type of retail
marketing whereby customers coming into a physical retail space are offered experiences
beyond the traditional ones. Amenities provided may include art, live music, virtual reality,
cafés and lounges, and large video display walls.
51. Fast fashion: This is clothing that moves from the catwalk or fashion shows to stores
quickly. The clothes represent the most recent trends. Stores like H&M and Zara have built
their businesses on fast fashion.
52. Factory Outlets: These are retail stores which sell items that are produced in excess
quantity at discounted price. These outlets are located in the close proximity of
manufacturing units or in association with other factory outlets.
53. Flash sales: These are sales that are available for a limited time. The huge discounts
(we’re talking 50 percent off and up) entice consumers to buy, and the limited time frame
usually anywhere from several hours to a couple of days forces them to act quickly. Some e-
tailers, like Gilt or Zulily, have built their entire business on flash sales.
54. Forecast: An estimation of future demand for products or services. Historical demand
is used to calculate future demand, with adjustments for seasonality and trends.
55. FIFO (first in first out): This is an inventory management cost strategy that assumes
the first units of stock purchased are the first ones that are sold, regardless of whether or not
they were. It’s a common way to calculate the value of inventory: If you assume the first
inventory in (the older inventory) is the first out, then the cost of the older inventory is
assigned to the cost of goods sold and the cost of the newer inventory is assigned to ending
inventory. The cost of goods sold is essential to evaluating inventory turnover and
determining the efficiency of your inventory management.
56. Franchise: This is a way that some businesses expand by distributing their goods and
services through a licensing relationship. In this contractual relationship, a franchisor grants a
license to a franchisee to conduct business under the business’s name. Usually the franchisor
specifies the products and services to be offered by the franchisee and provides an operating
system, the brand, and operational support. McDonald’s and Subway operate through
franchise systems.
57. GPS:GPS is a technology that can give an accurate position of an object anywhere on
earth with respect to latitude and longitude.

58. GIS: GIS is a computer based information system used to digitally represent and
analyze geographic features on the earth’s surface.
59. Green retailing: This refers to the environmentally friendly business practices that
retailers commit to. This can range from giving customers reusable shopping bags to adding
solar panels to supply electricity to their stores.
60. Gross margin: The difference between how much an item costs and what it sells for.
On a larger scale, it’s how much sales revenue a company keeps after all the direct costs of
making a product or performing a service are accounted for. It’s also called gross profit
margin.
61. High-speed retail: This practice speeds up the customer’s shopping experience. Pop-
up stores, and mobile businesses like food trucks all fit in this category.
62. Hypermarkets: These are one-stop shopping retail stores with at least 3000 sq.ft.
selling space, out of which 35% space is dedicated towards non-grocery products. They target
consumers over large area, and often share space with restaurants and coffee shops. The
hypermarket can spread over the space of 80,000 sq.ft. to 250,000 sq.ft. They offer exercise
equipment, cycles, CD/DVDs, Books, Electronics equipment, etc.
63. Impulse purchase: Also called an impulse buy, this happens when a customer makes
an unplanned purchase of a product or service right before checking out at the store. Some
retailers set up small items around their cashwrap to encourage this behaviour (like a grocery
store that puts magazines and candy in the checkout lane).
64. Independent Retailers: They own and run a single shop, and determine their policies
independently. Their family members can help in business and the ownership of the unit can
be passed from one generation to next. The biggest advantage is they can build personal
rapport with consumers very easily. For example, stand-alone grocery shops, florists,
stationery shops, book shops, etc.
65. Inventory management: This is a system a retailer uses to make sure the right
inventory is in the right place, at the right time, and in the right quantity. As a part of this, the
retailer is making sure that ordering, shipping, handling, and related costs are kept in check.
66. Inventory turnover: The average number of times that inventory on hand is sold or
used during a specific time period. Most of the time, high stock turn is good — it means
 you’re selling a lot without stocking too much. To calculate it, divide the cost of goods sold
by the average inventory.
67. Keystone pricing: This is a method of selling merchandise for double its wholesale
price. It’s an easy way for retailers to cover costs and make a reasonable profit.
68. Layaway/lay-by: This is a service that allows the customer to put an item on hold
with a retailer until the item is paid for in full. The customer pays instalments on the product
until it’s entirely paid off. While some retailers offer this kind of program all year, it is
commonly advertised during the holidays. Layaway programs make it easier for the
consumer to afford products and reduce financial risk for the retailer.
69. Leveraged buyout (LBO): An LBO is the purchase of a company using borrowed
funds (such as loans from banks and investors). The purchaser uses the company’s assets as
collateral for the funding and its cash flow to pay back whatever is owed.
70. LIFO (last in first out): This is a principle that assumes new merchandise sells
before older stock. It matches current sales with the current cost structure.
71. Loss leader: A marketing tool for retailers, a loss leader is an item that’s sold below
cost, or at a loss, in an effort to attract new customers. Retailers that use loss leaders rely on
the fact that once customers are in the door, they buy other items that do turn a profit.
72. Lot size: Also called order quantity, this is the quantity of an item you order for
delivery on a specific date.
73. Loyalty Programs: Retailers conduct loyalty program for the customers who make
frequent purchase by offering first access to new products, free coupons, or special
discounted price on particular days.
74. Markdown/mark-up: A markdown is the difference between the original retail price
and the reduced price. It is the devaluation of a product, usually because it’s not selling at the
original price. A mark-up is the amount of money added to the wholesale price to obtain the
retail price.
75. Customer-facing display: A customer-facing display (CFD) also known as a
customer display or monitor is usually a separate screen that allows customers to view their
order, tax, discounts, and loyalty information during the checkout process. Because they can
view what you are ringing up, CFDs help reduce inaccuracies and incorrect purchases,
creating a better experience for your customers.
76. Mass customization: This is a product that can be produced at a low cost in high
volume, but still provide each customer with a customized offering. Nike’s NIKEID is a
 prime example of a shoe that can be mass produced but in the specific colours a customer
wants.
77. Merchandising: This is the way a product is displayed in your store that encourages
customers to purchase it. Merchandising includes embellishments like price, packaging,
offers, coupons, and more.
78. Minimum advertised price: This is a supplier’s pricing policy that doesn’t permit
resellers to advertise prices below a specific amount.
79. Mobile payments: Mobile payments are regulated transactions that take place
digitally through your mobile device. They are enabled by near field communication (NFC).
Popular mobile payment apps include Apple Pay and Android Pay. Read our handy guide to
learn more about mobile payments.
80. Monthly sales index: A measure of seasonal sales that is calculated by dividing each
month’s actual sales by the average monthly sales, and then multiplying results by 100. If the
result is more than 100, that means there’s been growth; if less than 100, there’s been a loss.
81. Multichannel retailing: Selling merchandise through more than one independently
managed channel, such as brick-and-mortar stores, catalogues, and online. This is the
precursor to omni-channel retail, which aims to tie those channels together.
82. Mystery shopping: This is an activity where a market research company, watchdog
group, or even a retail owner sends in a decoy shopper to evaluate the products or the
customer service in a store. The mystery shopper behaves like a regular customer (or
performs specific tasks) and then provides feedback to help the store improve its practices.
83. Niche retailing: The practice of selling only to a specific market segment. A niche
retailer specializes in a specific type of product or a set of related products. Warby Parker is a
niche retailer specializing in eyewear. But your local pet store is also a niche retailer, despite
offering a wide range of products.
84. Net profit: The actual profit after working expenses have been paid. It’s calculated by
subtracting retail operating expenses from gross profit.
85. Net profit margin: This is the percentage of revenue left after expenses have been
deducted from sales. It’s a performance metric that shows how much profit a business gets
from its total sales. It’s calculated by dividing net profit by net sales.
86. Net sales: This is the revenue a retailer makes during a specific time period, after
deducting customer returns, markdowns, and employee discounts.
87. Obsolete inventory: This refers to products that have no sales or aren’t used during a
set period of time. It could be weeks or years, depending on the retailer.
88. Off price: This is merchandise purchased for less than the regular price. Selling off-
price merchandise can be a great way to get customers to your store. There are some retailers
that only sell off-price merchandise, like Nordstrom Rack, which sells designer merchandise
at drastically discounted prices. (Its parent company, Nordstrom, attributes some of the
company’s overall growth to its off-price retailer.)
89. Omni-channel marketing: Omni-channel marketing aims to create a seamless
experience across all of a brand’s marketing channels. This is different from multichannel
marketing. Most retailers already have multichannel marketing; they use a website, social
media, email, and other channels to push out brand messages, promotions, etc. Where omni-
channel differs is that it takes into account how consumers interact with all of those channels
and how they move from one to another; omni-channel marketing is all about connecting the
dots between the channels. The goal is to keep customers moving around within the brand
ecosystem, with each channel working in harmony to nurture more sales and engagement. An
omni-channel marketing strategy may include things like cross-channel loyalty programs, in-
store pickup, smartphone apps to compare prices or download coupons, and interactive in-
store digital look books, in addition to more traditional channels. Learn more about how to
run an effective omni-channel marketing strategy for retail.
90. Order lead time: The number of days from when a company buys the production
inputs it needs to when those items arrive at the manufacturing plant.
91. Organized Retail: Organized Retailing is a large retail chain of shops run with up-to-
date technology, accounting transparency, supply chain management, and distribution
systems.
92. Pedestrian count: In this case, one must decide who is to be counted, where the
count should take place, and when the count should be made.
93. Planogram: This is a detailed floor plan of a store. It visually represents the
placement of products and product categories throughout a store (on shelves, racks, etc.) that
best drives sales. A planogram is a helpful tool for thinking about how placement impacts
purchase behaviour and how retailers can be most efficient with their space.
94. PLU: This stands for price look up. It’s a system that displays the description and
price of an item when the item number is entered or scanned at the point of sale. PLUs are
often printed on the customer receipt to remind the customer what was bought.
95. Pop-up store: A short-term shop that keeps a physical space for a limited amount of
time. Pop-ups can be set up anywhere — empty retail spaces, mall booths, parks, etc.
96. Point of Purchase (POP) Displays: They are Ads placed near the merchandise to
promote the sale where the customer makes buying decision.
97. Point of Sale (POS) Displays: They are Ads placed near the checkout or billing
counters to promote on-the-fly purchase that the customer makes at the last minute.
98. Prestige pricing: This is a pricing strategy used by high-end retailers in which an
item is priced at a high level to denote its exclusivity, quality, or luxury. Prestige pricing is
intended to attract status-conscious consumers or those who want to buy premium products.
99. Procurement: This is the process of sourcing, negotiating, and strategically selecting
goods for your retail shop.
100. Product life cycle: This describes the stages a product goes through once it’s in
market. There are four: introduction, growth (in sales), maturity, and decline, and they show
whether the expected sales are strong or poor. By paying close attention to the life cycle of
each product, you can gather information to improve future product, promotions, and
offerings.
101. Proforma invoice: A document that outlines the commitment on the part of the seller
to deliver products or services to the buyer for a specific price. It’s sent in advance of a
shipment, so it’s not a true invoice.
102. Point-of-sale (POS) system: At the most basic level, a point-of-sale system includes
the hardware and software that allows a retailer to check out customers, record sales, accept
payments, and route those funds to the bank. But the right retail point of sale can do more
than record sales. With the right software integrations, it can help you run your entire
business and affect your long-term growth. Read more in our handy guide to choosing
the best POS system for your small business.
103. Private label: A brand that is not owned by a manufacturer but by the retailer or
supplier. Retailers and suppliers buy the goods and market them under their name. Target’s
Up&Up and Simply Balanced are both examples of private label lines.
104. Publicity:Publicity is a non-personal form of promotion where messages are
transmitted through mass media, the time or space provided by media is not paid for and
there is no identified commercial sponsor.

105. Purchase order: This is a document used to communicate a purchase to an employer.

It can be used to approve, track, and process purchases as well. A purchase order usually
indicates types, quantities, and agreed prices for products or services, as well as delivery
dates.
106. Quantity on hand: This describes the physical inventory that a retailer has in
possession.
107. Quantity on order: This is all the stock that you have in open purchase orders or
manufacturing orders.
108. Quantity discount: This is an incentive offered to a buyer to purchase a certain
quantity for a decreased cost per unit.
109. Relationship retailing: A strategy that businesses use to build loyalty and create
lasting relationships with customers. There are numerous tactics retailers can use to reach
those goals, including loyalty programs, first-class customer service, great return policies, or
personalized experiences.
110. Retail Communication: Retailers communicate with the customers about their
products or services, new product updates, and upcoming events regarding retail business
via print, audio, video, or Internet media
111. Retargeting: This is an advertising practice in which online ads are targeted to
consumers based on their previous actions. A retailer like Nordstrom, for instance, retargets
consumers based on what they’ve browsed on its site. A consumer may have looked at a
pair of shoes on Nordstrom’s website, and is then retargeted with an ad for those shoes on
Facebook.
112. RFID: Radio frequency identification is the technology that provides radio waves to
track, read, and capture the information that lives in a chip on a product’s label or packaging.
RFID is used to take accurate measures of inventory, but retailers are also looking at how to
use it to learn more about customers.
113. Sales Promotion:Sales promotion refers to communication strategies designed to act
as a direct inducement, an added value, or incentive for the product to customers.

114. Shrinkage: This is the difference between the amount of stock that a retailer has on
the books and the actual stock that’s available. To put it simply, it’s inventory loss that can be
attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, or
damage.
115. Space Management:It is the process of managing the floor space adequately to
facilitate the customers and to increase the sale. Since store space is a limited resource, it
needs to be used wisely.
116. Specialty Stores: These retail stores offer a particular kind of merchandise such as
home furnishing, domestic electronic appliances, computers and related products, etc. They
 also offer high level service and product information to consumers. They occupy at least
8000 sq.ft. selling space.For example, Gautier Furniture and Croma from India, High &
Mighty from UK.
117. Stock-keeping unit (SKU): This is a number (usually eight alphanumeric digits) that
retailers assign to products to keep track of stock internally. It’s used in inventory
management to track and distinguish one item from another. A SKU represents all the
attributes of a product, including brand, size, and colour. For example, one type of shoe could
have 40 SKUs, in various combinations of sizes and colours. A SKU is often confused with a
UPC (Universal Product Code), as they both are used to identify products. The difference is
that SKUs are unique to a retailer, whereas a UPC applies to a product no matter what retailer
is selling it.
118. Social commerce: New retail and e-commerce practices that incorporate social
media, user-generated content, or social interaction. This doesn’t mean that social platforms,
like Instagram, are the platforms where purchases happen; instead, the social networks help
drive sales. There are a variety of types of social commerce: peer-to-peer marketplaces,
group buying, peer recommendation sites, social network–driven sales, and user-curated
shopping, to name a few.
119. Store loyalty: When a buyer likes and trusts a store, and therefore systematically goes
there again and again to make purchases. A retailer can encourage this with loyalty
programs and special promotions for regular customers.
120. Supermarkets: These are large stores with high volume and low profit margin. They
target mass consumer and their selling area ranges from 8000 sq.ft. to 10,000 sq.ft. They
offer fresh as well as preserved food items, toiletries, groceries and basic household items.
Here, at least 70% selling space is reserved for food and grocery products.
121. Supply chain management: The management of the flow of goods and services,
involving the movement and storage of raw, work-in-process, and finished goods from the
point of origin to point of consumption.
122. Supermarkets: These are large stores with high volume and low profit margin. They
target mass consumer and their selling area ranges from 8000 sq.ft. to 10,000 sq.ft. They
offer fresh as well as preserved food items, toiletries, groceries and basic household items.
Here, at least 70% selling space is reserved for food and grocery products.
123. Sundown Rule: According to this rule, customer’s problem should be solved before
sunset.
124. Telemarketing: The products are advertised on the television. The price, warranty,
return policies, buying schemes, contact number etc. are described at the end of the Ad. The
consumers can place order by calling the retailer’s number. The retailer then delivers the
product at the consumer’s doorstep. For example, Homeshop18
125. Trading area:A trade area is contiguous geographic area from which a retailer draws
customers who account for the majority of a store’s sales.

126. Triple net lease: This is a rental agreement on a commercial property in which the
tenant agrees to pay all ongoing expenses of the property (like real estate taxes, building
insurance, and maintenance) as well as things like rent and utilities. Because the landlord
doesn’t have to worry about variable costs of ownership, this type of lease generally has a
lower rental rate than a standard lease.
127. T-Stand: This is a typical merchandising fixture used to display clothing. It can have
straight or waterfall arms.
128. Units per transaction (UPT): This measurement is an average of the amount of
items sold during each sales transaction. It’s one metric to track over time to see growth.
129. Unorganized Retail: Unorganized Retailing is nothing but a small retail business
conducted by an owner or a caretaker of the shop with no technological and accounting
aids.
130. Visual merchandising: This is the practice of creating visually appealing displays,
in-store experiences, and designs that drive traffic and maximize sales. Studies have shown
that visual merchandising can influence a customer’s perception of item quality and
likeliness to purchase.
131. Warehouse management system: Computer software designed for managing the
movement and storage of materials throughout a warehouse. The system is usually divided
into three operations: put away, replenishment, and picking.
132. Wholesale: This is the sale of goods in large quantities to retailers, who then resell
them.