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ABC analysis A form of analysis that covers a range of items, from inventory levels to customers and sales territories,

into three groups: A = very important; B = important; C = marginal significance. Above the line (ATL) All advertising activity that uses broadcast and is published to mass audiences through media such as television, cinema, radio, print. Aerotropolis An airport village . A new type of urban form comprising aviation -intensive businesses and related enterprises extending up to 25 kilometers outward from major airports. The term was defined by Dr. John D. Kasarda, an American academic who defined[concept in 2000. It is now being extended to include even non aviation related businesses that are coming up to cater to the customer traffic created by airports. Agent A business intermediary who acts on behalf of the manufacturers. His role is to collect orders from retailers and subsequently to collect payments. He gets commission on the basis of the collections. Aging A process that determines the age (number of days old) of product in stock. Anchor store A large store, such as a department store or supermarket, that is prominently located in a shopping mall to attract customers who are then expected to also visit the other shops in the mall e.g. Shoppers Stop is the anchor store at Ansal Plaza in Delhi, Garuda Mall in Bangalore and Inorbit in Mumbai. APMC : Agricultural Produce Marketing Committe The APMC act instituted by the Govt. of India Markets divides the geographical area of a State into market areas each of which is managed by the Market Committees constituted by the State Governments. Once a particular area is declared a market area and falls under the jurisdiction of a Market Committee, no person or agency is allowed freely to carry on wholesale marketing activities. The mandis in each market area come under the jurisdiction of the APMC. Assortment Planning This term applies to the merchandising and buying function in retail. It refers to the task of determining the specific quantities and features (brands, colors, sizes) of each product being purchased. Atmospherics The architecture, layout, signs and displays, color, lighting, music and odours which together create an image in the customers mind. In short, the extra elements that enhance a retail strategy mix. Automatic reordering system Involves the use of computers to generate weekly merchandise orders that are based on sales, in relation to model stock plans. Average Basket Size Average number of units moving in one singe bill. It is calculated as Total units sold/ No of invoices. Average Ticket Size

This refers to the average bill value. It is calculated as Total sales / No of invoices. Average unit value This refers to the average price of a single unit. It is calculated as Total value/ No of units.

B2B (Business-to-Business) Business model focused on sales to other businesses. Manufacturers and wholesalers fall into this category since they further supply to businesses that supply to the ultimate consumer. B2C (Business-to-Consumer) Business model focused on sales to consumers. Retailers are typical B2C companies. B2G (Business-to-Government) Business model focused on sales to national, state, or local government agencies. Barcode A unique identification for a product. It is normally printed on a sticker and put on the relevant product. Base Stock Also known as Minimum Base Quantity (MBQ) refers to the minimum level of stock the retailer plans carry in a store. This includes the Minimum Display Quantity (MDQ) and the back up stock (if there is a storage section in the store). The Base stock figures are flexible and may change basis the season. Basis Point One basis point is one hundredth of a percentage point. A change of 120 basis points in profits for instance would mean a change of 1.2% Basket Size The number of units moving in one single bill e.g. if you have bought 2 shirts and one trouser from a store then the basket size is 3 pcs. Beach head A retail expansion strategy that focuses on establishing a strong store presence or beachhead in key markets before expanding to smaller ones. Below the line (BTL): All advertising activity that is done at an outlet/retail level as well as direct marketing. BTL activity is designed to bring in awareness to a specific target market. It includes store promotions, road shows, flyers, placing stalls in malls, participating in exhibitions, brochures, catalogues etc. Benchmarking The process of setting standards of performance based on the achievements of high performing competitors. Better Cotton

The label is attributed to cotton raised with a minimum of pesticides and by methods that limit the amount of water used, while also providing sustainable work in decent conditions. Bin Represents a physical place to store inventory. Normally used in the context of warehousing and generally refers to physical rows/shelves. Black Friday The day after Thanksgiving in the USA. It is seen as the beginning of the Christmas Shopping season. While Black Friday is often thought of as the busiest retail shopping day of the year, in fact the busiest retail shopping day of the year is usually the Saturday before Christmas. The origin of the term Black Friday comes from the shift in profitability during the holiday season. Black Friday marks the day when many retailers shift from being unprofitable, or "in the red," to being profitable, or "in the black." Blue Collar worker A member of the working class who performs manual labor. The origin of the terms comes from the blue canvas or cotton uniforms that industrial and manual workers wear while performing their job (also see White Collar and Pink Collar workers) Book Inventory Value of goods on hand at a given time as reflected in the books of accounts. This may vary from the actual stocks on account of theft. Bottom line The profits made by a business. It is called the bottom line since it is the last (bottom) line on a Profit & Loss statement. When a business is in losses then the bottom line is written in red and we say the business is in the red.

Bottom-up planning Involves estimating total sales for a business by adding together the planned sales figures that have been developed by each business unit. Breadth Relates to the number of product lines or to the number of brands that is carried by a store or department within a product classification. Bricks and mortar Refers to a physical retail store. Broad and shallow Refers to a merchandising strategy that focuses on offering a wide selection of brands/ lines with little depth in each. Brown goods Relatively light electronic consumer durables such as TVs, radios, digital media players, and computers, as distinct from heavy consumer durables such as air conditioners, refrigerators, stoves (which are called white goods) Brownfield projects

existing projects Buyer As the word denotes refers to the person in the retail hierarchy who is responsible for selecting, pricing, and purchasing merchandise.

Cannibalization To cut into; cause to become reduced; diminish e.g. New products introduced in the next six months will cannibalize sales from established lines. Also occurs when sales of one store are negatively affected because of sales of another store e.g. If Brand X has a store in Connaught Place and they open a second store in the same market. there is a danger that the second store will cannibalize ( cut into/ reduce) the sales of the first store. Carpet Area The net usable area available for a store - the area that can be carpeted. Technically the carpet area is calculated by measuring space between walls ( as measured from the inside of the walls the internal perimeter) and does not include space taken up by columns and staircases. However, for working purposes, many retailers take the entire internal perimeter area as carpet area. Carrying and Freight Agent (C&F agent) A business intermediary who buys goods in bulk from the manufacturer and bills them further to retailers as per orders booked by the manufacturers sales team. Different from the whole seller/ distributor in that he does not play an active selling role. Cash & Carry stores These are wholesale stores that cater to retailers, hotels and offices. Prices are normally discounted. Products are bundled in wholesale packs. E.g. Metro. Internationally these stores also cater to individuals, but in India on account of FDI restrictions they only cater to other businesses. Also known as Price Clubs Cash discounts Discount on the invoice when a retailer pays in a certain specified time e.g. payment within 7 days of delivery may earn a cash discount of 3% Cash register A cash register is a mechanical or electronic device for calculating and recording sales transactions, and an attached drawer for storing cash. The cash register also usually prints a receipt for the customer. In most cases the drawer can be opened only after a sale, except when using special keys, which generally only the owner or select senior employees have. This reduces the risk of employees stealing from the shop owner by pocketing the money without recording a sale. In fact, cash registers were invented for the purpose of eliminating employee theft or embezzlement; the original name was Incorruptible Cashier. Cash till The cash counter in a retail store where bills are cut and cash (and credit card) transactions take place. Catalogue store A type of retail store that displays product catalogs from which customers select the product e.g. Argos (UK)

Catchment Area The geographical area from which trade to a store or centre is attracted; the primary catchment area defines the area from which the vast majority of shoppers (80-90%) tend to use a particular store or centre in preference to other stores or centres. Category A classification assigned to a certain group of related retail items e.g. The Men's wear category. Category killer An especially large specialty store featuring an enormous selection in its product category and at relatively low prices e.g. Toys R us. Category Management A method of organizing the retail structure so that it is managed by product category e.g. mens, womens, sports, kids etc CCTV Closed circuit TV. Used to monitor movement in different parts of a store and to deter pilferage Central business district (CBD) The hub of retailing in a city. It is the largest shopping area in that city and is synonymous with the term downtown. The CBD exists where there is the greatest concentration of office building and retail stores. Centralised Organsiation Retail organizations where all strategic and administrative decision-making is done at some central point. This permits a high degree of standardization. These retailers believe that relatively few people who are experts should take all important decisions. Centralized buying Occurs when all buying activities are performed from a retailers central headquarters Chain Store Two or more retail stores under single ownership Channel A distribution route e.g. a brand can choose to sell its products through multiple channels including own stores, department stores, distributors etc. Charge Back A reversal of a credit card transaction, typically initiated by the card issuer at the cardholder's request. Charge backs can occur for any number of reasons, including customer disputes, potential or actual processing errors, and authorization issues. Cherry Picking Selecting only the best. The act of picking only the best options and leaving the less attractive ones. Classic A style that is in demand continuously even though minor changes may be made in the product e.g. a mens white full sleeve shirt with a regular collar.

Click and mortar Refers to retailers who have both an on line presence (click) and physical stores (mortar). Closing a drawer The process of recording the ending amount of cash and other payment types in a drawer before performing end of day posting. Normally, a drawer is closed at the end of each day. COCO (Company owned company operated) This refers to stores that are owned and operated by the company. Cofo Company owned franchisee operated Collect ON DELIVERY (COD) A shipping method where the buyer pays for the purchase when goods are delivered. Concession A pre-determined area within a store that is given to a brand normally on consignment terms. The area is managed and branded by the brand . Also known as shop-in-shop. Consignment An stores arrangement with the supplier that indicates that the buyer will take merchandise into a store but will pay for it only when it sells Consignment Goods Items not paid for by retailer until they are sold. The retailer can return unsold merchandise and does not take title until the final sale is completed. Contiguous expansion A retail expansion strategy that locates new outlets in markets close to existing ones. Convenience store A food oriented retailer that is well located, is open long hours, and carries a moderate number of items. It is small, has average to above average prices and average atmosphere and customer services. In India these are known as Kirana stores. Conversion The number of people who buy from among those who walk into a store e.g. if a 100 people walk into a store and only 50 buy, the conversion is 50. The conversion percentage for the same will be 50%.

Cost of goods Includes the actual cost of the merchandise including all expenses involved in getting the goods from the vendor to the store and any alteration costs thereafter. Cost of goods sold = Cost of merchandise (discounts + transportation + alteration costs) Cost plus pricing

A pricing strategy where the retail price of the product is determined on the basis of a pre determined mark up on cost Counting a drawer The process of recording the amount of cash and other payment types in a drawer. Normally, the drawer is counted at the end of each business day. Covered Area The actual area occupied by the retailer this is measured as the space between the walls (measured from the outside of the wall the external perimeter) and includes columns, stairs etc. This is also known as Plinth area. Critical mass The size at which a business undergoes a fundamental change in regard to operations e.g. a retailer needs to achieve a certain critical mass before it can re-negotiate terms with suppliers Cumulative or Total mark up The total mark up that is achieved across all products in the category. Customer Relationship Management A customer centric business strategy with the goal of maximizing profitability, revenue, and customer satisfaction. The term is also used for software technologies that support this business goal and which include the capture, storage and analysis of customer information. The technology to support CRM initiatives must be integrated as part of an overall customer-centric strategy. Many CRM initiatives have failed because implementation was limited to software installation without alignment to a customer-centric strategy. Cyber Monday Refers to the Monday immediately following Black Friday, which marks the beginning of the Christmas shopping season for online retailers. In recent years Cyber Monday has become one of the busiest days for online retailers. Data mining Refers to the process of searching through data to find trends and patterns that might otherwise have gone unnoticed. Data warehousing Refers to the process of electronically storing customer and operations (sales and stock) data Day time population The population of a city during the day. Some cities which are district head quarters attract a lot of people in the day. These people are not residents but add to the population during day time. Dead Areas Awkward spaces in a store where normal displays cannot be set up and which tend to attract low customer footfall. Decentralised organization Retail organisations which seeks to place decision making authority in the hands of managers close to geographically localized conditions.

Decline stage The last stage of the product life cycle that occurs when the target market shrinks, and price cutting minimizes profit margins Delivery period The time between when an order is placed and when the merchandise is available on the sales floor. Also known as lead time. Demographic data Data that documents facts about customers on matters relating to age, sex, family size, income, education, occupation and race. Department store A retail store that has a number of distinct product departments. Depth The number of choices/ options offered to customers within each brand or product classification e.g. A shallow depth would refer to fewer options from which to select. Depth of Range The number of colors and sizes per style that is on offer. If the number of sizes and colors is large we say the range is deep , if the number of colors and sizes is less we say the range is shallow. A retailer may have a wide and shallow range or a narrow and deep range (also see width of range) Destination Store A retail store where merchandise selection and presentation, pricing, or other unique features act as a magnet for customers making the store their primary shopping destination. Discretionary pricing A pricing strategy where the retail price of the product is decided by the price that the product can command in the market. Discretionary spending: The amount of an individual's income that is left for spending, investing or saving after taxes and personal necessities (such as food, shelter, and clothing) have been paid. Discretionary income includes money spent on luxury items, vacations and non-essential goods and services. Distributor A business intermediary who buys goods in bulk from the manufacturer and sells them to the retailer in smaller quantities. Also known as a Wholesaler. DIY An abbreviation of "Do it yourself." Refers to the act of building, modifying, or repairing something without the aid of experts or professionals. In retail it generally refers to DIY kits e.g. DIY furniture from Ikea, where the customer is expected to put the parts together on the basis of printed instructions that come with the purchase. Doorbuster deals A term used to refer to super attractive promotions normally discount offers that are expected to get

crowds into the store. Down market Appealing to low income consumers. Normally cheap, popular and of poor quality. Drawer fund The amount of money left in a drawer after the drawer has been closed. The drawer fund is typically used to provide startup money (change) for the next business day. Also known as float. Drop Refers to delivery at the store of a merchandise collection. For a season a retailer may plan a single drop for the season, or a drop a month or any combination that may be relevant. Durables Products (such as cars, furniture and appliances) that are capable of surviving many uses and typically last for years Dynamic pricing A flexible pricing mechanism made possible by advances in information technology. The airline and hotel industries are often cited as a dynamic pricing success story. Basis the level of booking already made for the flight or the hotel night in question, the price for the balance seats/ rooms keeps changing. In fact most of the passengers on any given airplane are likely to have paid different ticket prices for the same flight. Early adopters Those consumers who purchase fashion merchandise in the early stage of the product life cycle. Ebidta Abbreviation for Earnings before interest, depreciation, taxes and amortization. The Ebidta is a popular metric to judge profitability of a company since it eliminates the effects of financing (interest) and accounting (taxes, depreciation) decisions. EBO Exclusive Business Outlet. This refers to a retail store that keeps only a single brand e.g. a Levis exclusive showroom. Economic Order Quantity ( EOQ) Size of an order at which the total procurement cost and inventory carrying cost is the minimum. EDI (Electronic Data Interchange) Ability to electronically exchange purchasing information between your retail software and the vendor's system. EDLP (Every day Low Pricing) A pricing strategy whereby a retailer strives to sell all of its goods and services at consistently low prices throughout the selling season. End caps The end pieces of display units typically used to display promotional items.

Entry level price point The lowest price point in the range. Normally a strategic price point. Also known as the lead in price point. EOSS : Abbreviation for End of Season Sale The discount sale that most apparel retailers has at the end of a season to clear the last seasons stock. India the EOSS is held twice normally. Once at the end of summer and once at the end of winter. Evening Economy The economic benefits derived from the utilization of spaces uses within a town centre that attract visitors in the evening for leisure and entertainment purposes, such as cinemas, theatres, public houses, bars, restaurants, bingo, night clubs and casinos. Exception reporting Reporting that only includes information not meeting established criteria. For example, if you plan to sell between 2% and 5% of your inventory per week, then exception reporting would allow you to report on product sales outside your criteria limits (e.g. product sales that fell below 2% or rose above 5%). F.O.B (Free on board) It is a method of expressing who is responsible for paying transportation charges e.g. FOB factory would mean the retailer is paying the transportation charges. Title passes to the buyer when the seller delivers goods to the transportation carrier. Facings A facing refers to the front view of a single product on a shelf. If a shelf has 10 products that are facing the customer then the shelf is said to have 10 facings. It is a retail term which is used for the purpose of merchandising the store. Factory Outlet A manufacturer-owned store selling firms factory seconds, store discontinued merchandise, canceled orders. Goods are normally available at an attractive discount. Fad A short lived fashion Fair Trade Fairtrade labelling (usually simply Fairtrade) is a certification system designed to allow consumers to identify goods which meet certain ethical business standards. Fairtrade certification guarantees not only fair prices, but also the principles of ethical purchasing. These principles include adherence to ILO agreements such as those banning child and slave labour, guaranteeing a safe workplace and the right to unionise, adherence to the United Nations charter of human rights, a fair price that covers the cost of production and facilitates social development, and protection and conservation of the environment. Overseen by a standard-setting body (FLO International) and a certification body (FLO-CERT), the system involves independent auditing of producers and traders to ensure the agreed standards are met. For a product to carry the Fair Trade Certified Mark, it must come from FLO-CERT inspected and certified producer organizations. FDI Abbreviation for Foreign Direct Investment. Refers to investment by a company in a country other than that in which the company is based FIFO (First in, First out)

A method of inventory control that assumes that the merchandise that was received first is sold first e.g. if white shirts were received in two batches of fifty pieces each, as per the FIFO method the first 50 pieces should be sold first. Fill rate The proportion of orders that can be immediately met with stock in hand e.g. if the orders are for 100 and you receive 70 then the fill rate is 70%. A popular metric used by supermarkets to determine supplier efficiency. First Moment of Truth This is an expression introduced by Procter and Gamble. The First Moment of Truth refers to the 3-7 seconds after a shopper first encounters a product on a store shelf. This time lapse is called (by P&G) "first moment of truth" and it's considered the most important marketing opportunity for a brand. It is in these few seconds, P&G contends, that marketers have the best chance of converting a browser into a buyer . Flagship store The leading store within a group, usually the biggest in size and stock holding and used as a benchmark against which other stores are measured. Also used to denote other similar stores within the group that meet this criteria. Flash Mob A flash mob typically refers to a group of people who suddenly assemble in a public place, perform an unusual action for a brief period and then disperse quickly. It is seen as a cost-effective tool for brands looking to reach small but focused target groups e.g. On a busy weekend at the Great India Place mall in Noida (a Delhi suburb), 100 people dressed in Allen Sollys new range of casual clothing froze for all of seven minutes as passers-by stopped in their tracks and watched. The human mannequins were hired by the apparel brand to showcase its newest collection. The smartly dressed models with prominent Allen Solly tags just froze in the middle of whatever they were doing at the mall - whether it was drinking coffee, applying make-up, talking on the phone or walking. So shoppers were a little startled at first, but figured things out when they saw the Allen Solly tags. The flash mob strategy allowed the brand to showcase 100 different garment pieces at the same time. Flea Market A market that has many retail vendors offering a range of products at discount prices in plain surroundings. Goods are often sold off pavements and small shacks. Float The cash that is provided at the cash till every morning to conduct the days business. It normally includes a predetermined mix of currency denomination to ensure that the cashier has sufficient change to return to the customer through the day. Floor price The minimum price below which a product should not be priced Floor ready Merchandise Items that are received at the store in condition to be put right on display with no preparation by retail workers. FMCG ( Fast Moving consumer Goods) This is a classification that refers to wide range of frequently purchased consumer products including:

toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, bulbs, batteries. Fofo Franchisee owned franchisee operated Footfall The number of people walking into a store Fourway rack Floor fixture which has 4 racks. Often used for trouser displays.

Franchising A contractual arrangement between two parties the franchisor (normally a brand owner or manufacturer) and the franchisee ( normally a store owner or a licensee of the brand) , that allows the franchisee to conduct business under the brand name and according to norms of business as set by the brand. Free flow Series of circular, octagonal, oval shaped fixture patterns. The aisles deliberately lack uniformity. Popular for up-market stores.

Free trade agreement An agreement between countries to eliminate tariffs on merchandise being traded Free-Standing store A retail location that is independent of any shopping center e.g. Shoppers Stop at Andheri (Mumbai) is a free standing store. Frequent Shopper Program (Customer Loyalty Program) Program designed to reward customers for their continued business. It is designed to promote loyalty, increase visitation, and encourage future purchases. Rewards may be in the form of discounts, awards, or other perks. Full Line Discount store A type of department store characterized by (1) a broad merchandise assortment (2) merchandise normally sold via self service with minimal assistance (3) private brand durable and non-durable goods (4) hard goods accounting for 60 per cent of merchandise sold (5) a relatively inexpensive building, equipment and fixtures. Full price The amount of goods the company has sold or plans to sell at full price as a percentage of the total buy. Fusion clothing: A mix of Indian and western clothing.

Generics Basic merchandise. Normally unbranded e.g. unbranded salt or sugar etc. Geographic departmentalization Refers to an organizational structure based on geographic areas (e.g. a retailer having a north, south, east and west division, each headed by a senior manager) Giffen goods Goods whose demand increases by increasing its price. In normal situations, as the price of a good rises, the substitution effect causes consumers to purchase less of it and more of substitute goods. In the Giffen good situation, the income effect dominates, leading people to buy more of the good, even as its price rises. The classic example given is of inferior quality staple foods, whose demand is driven by poverty that makes their purchasers unable to afford superior foodstuffs. As the price of the cheap staple rises, they can no longer afford to supplement their diet with better foods, and must consume more of the staple food. Some types of premium goods are sometimes claimed to be Giffen goods. It is claimed that lowering the price of these high status goods can decrease demand because they are no longer perceived as exclusive or high status products. GMROI (Gross Margin Return On Investment) GMROI is a key retail performance indicator. It is a numerical indicator of the companys return on its investment for an item or group of items and is calculated as follows Gondola A center of Floor fixture that allows for flexible display.

Goods on Consignment Goods on consignment is a trading arrangement in which the vendor sends good to the retailer who pays the vendor only as and when the goods are sold. The vendor remains the owner of the goods until they are further sold and after a certain period takes back the unsold goods. Greenfield projects new projects Greige A woven fabric as it comes from the loom and before it is sent for finishing. It is actually a cream-ish color. Grey Goods Goods that are sold in a grey market. Essentially goods that have been smuggled into the country. Grey market A market which sells smuggled goods. Generally includes well known branded product. They are often sold by unauthorized dealers at prices that are determined locally. Grid Layout A rectangular arrangement of fixtures and aisles in a more or less repetitive pattern. Secondary aisles run at right angels to the main aisles and each aisle is usually of the same width for the entire length. Popular for supermarket and discount formats.

Gross Area Total area of a store including external space like verandahs and internal spaces like staircase etc. The total area for which rent is being paid. Gross profit (margin) The difference between an item's retail price and its cost. Growth Stage The stage in the product life cycle where innovators have recommended the purchase of a new product to their friends, causing increased sales and product variations Haat A weekly village fair in India with temporarily set up stores normally spread on the ground, with each seller retailing diverse product offerings. Hang tag A hanging price tag used for apparel and similar merchandise to describe the product or to give information about the company. Hard lines Refers to merchandise lines like hardware, sporting goods, appliances, furniture, lawn and garden basically all merchandise carried by a store with the exception of apparel and accessories and fashions for the home Haute couture Haute Couture is a French phrase for high fashion. Couture means dressmaking, sewing, or needlework and haute means elegant or high, so the two combined imply excellent artistry with the fashioning of garments. In modern France, haute couture is a "protected name" that can be used only by firms that meet certain well-defined standards. However, the term is also used loosely to describe all high-fashion custom-fitted clothing, whether it is produced in Paris or in other fashion capitals such as Milan, London etc. Haute couture is made to order for a specific customer, and it is usually made from high-quality, expensive fabric and sewn with extreme attention to detail and finish, often using time-consuming, hand-executed techniques. High street A popular shopping area characterized by high rentals and premium brands e.g. Linking Road in Mumbai or Commercial Street in Bangalore. High-involvement purchases Purchases that involve high expenditure or personal risk for example buying jewelry, a car or making investments that require greater evaluation. High-low pricing Method of pricing for an organization where the goods or services offered by the organization are regularly priced higher than competitors, but through promotions, advertisements, and or coupons, lower prices are offered on key items. The lower promotional prices are designed to bring customers to the organization where the customer is offered the promotional product as well as the regular higher priced products.

Hub and spoke A store expansion strategy which requires setting up of flagship stores or hubs in key markets and then expanding to smaller markets in neighboring areas. Hypermarkets Mega supermarkets and general merchandise stores that stock everything from food to appliances Impulse product Occurs when consumers purchased products and or brands they had not planned to buy before entering a store as a result of some stimulus at the store e.g. an attractive product display. Independent stores Refers to a single store, which is not part of any chain. The bulk of stores in India fall in this category. Initial margin or intake margin The margin percentage you will achieve when a product sells at its original selling price i.e. without any discount. Introduction stage The stage in the product life cycle that occurs when products are usually accepted by only a few people Inventory Merchandise on-hand for sale to customers in the ordinary course of business. Also called Stock. Just In Time Inventory A computerized method of tracking inventory needs and writing purchase orders timed so that inventory arrives only on the day it is needed. Keystone Markup A markup equal to the cost of the merchandise. Retail price is determined by doubling the cost of an item. Kirana Stores A small Indian neighborhood mom- and pop store dealing with basis grocery and top-up convenience products, offering personalized service. It is small, has average to above average prices and average atmosphere and customer services. KPIs : Abbreviation for Key performance indicat A set of quantifiable measures that a company uses to evaluate factors that are crucial to the success of an organization. KPIs differ per organization e.g. For a retailer KPIs may include net revenue or gross margin, while for the government it might consider unemployment rates. KRAs: Abbreviation for Key Result Areas The primary responsibilities of an Individual in a job. The core area which each person is accountable and for which they will be measured at the time of Laggards Consumers who accept a style when it is in the decline stage of the product life

cycle. Landed cost The importers final cost for foreign merchandise, which includes the merchandise cost, duties and tariffs, commissions, insurance, storage expenses, and transportation charges Lead in price point The lowest price point in the range. Normally a strategically decided price point. Lead Time The time span 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) Licensed Brands Brands for which the licensor ( owner of a well known name) enters into a contract with a licensee ( a retailer or a third party) The license either manufacturers or contracts with a manufacturer to produce the licensed product and pays a royalty to the licensor. Lifetime value The potential of a customer to give business over his/ her lifetime. E.g. if a person spends Rs 10,000 a year on shirts then over his active shopping lifetime (assuming it to be 40 adult years) he will spend 400,000/-. LIFO Last in First out method of inventory control that assumes the merchandise that was received last was sold first Like for Like sales A common metric in the retail industry, compares sales of stores that have been in the business for a year or more. This measure allows analysts to determine what portion of new sales has come from sales growth and what portion from opening new stores. Also known as same store sales. Line item A single item on a Purchase order or a range plan. List Price A retail level price generally set by manufacturers Lock in period When referring to real estate transactions, the lock in period refers to a period during which the tenant and the landlord are committed to the terms of the contract. This is the minimum period for which the transaction is valid. Any exit clause is applicable only after this period. Vacating the space before the stipulated lock-in period means forfeiture of deposit, and in some cases a penalty, depending on the contract drawn up by the two sides. Logistics

The total process of moving goods from manufacturer to a customer in the most timely and cost efficient manner possible Loss leader A pricing strategy where a particular item is sold below cost in an effort to stimulate other, more profitable sales. For example, during the Thanksgiving season, turkeys are frequently sold at pennies per pound in the hopes that the grocery store will profit from other groceries purchased at the same time. Low involvement purchases Purchases that involve relatively low expenditure or personal risk e.g. routine purchases like buying a soft drink, choosing some breakfast cereals in the supermarket that have very simple evaluation processes Loyalty programs Promotion programs run by retail chains where customers are given tangible rewards for patronizing a store. The higher the patronage the greater the reward. Made ups Refers to the line of home textiles that includes linen, tapestry, curtains etc. Also known as soft furnishings. Mall A shopping mall or shopping centre is a building or set of buildings that contain a variety of retail units, with interconnecting walkways enabling visitors to easily walk from unit to unit. In a sense it is an enclosed market. Mandi A whole sale market for fruits and vegetables in India Mapping A technique to evaluate the trading area of store by determining the distance people are likely to travel to get to the store, the population density of the geographic area surrounding the store, and the travel patterns and times from various locations Margin The difference between the cost of an item and its price E.g. if cost of goods is Rs 100/ and the retail price of Rs 150/- then the rupee margin is Rs 50/Margin percentage The gross profit or margin expressed as a percentage of the retail price. E.g if cost of goods is Rs 100/- and the retail price of Rs 150/- then the rupee margin is Rs 50/- and the margin percentage is 33.33%. Markdown A reduction in the original retail price, primarily taken for clearance of end of season merchandise or for promotional reasons. Markdown percentage A control tool used by buyers. It is calculated by dividing total Rupee markdowns by total sales. E.g. if total Rupee markdown is Rs 100,000 and Total sale is Rs 10,00,000 then the Markdown percentage is 10%

Market Skimming A pricing strategy wherein a firm charges premium prices and attracts customers less concerned with price than service assortment and status. Market-oriented pricing Setting a price based upon analysis and research compiled from the target market. This means that marketers will set prices depending on the results from the research. For instance if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at an above price or below, depending on what the company wants to achieve. Markup The amount of money added to the cost of goods to calculate retail price. E.g. if cost of goods is Rs 100/ and you add Rs 50/- to this to arrive at the retail price of Rs 150/- then the mark up is Rs 50/Markup Percentage The Rupee mark up expressed as a percentage of the cost price. E.g. if cost of goods is Rs 100/ and you add Rs 50/- to this to arrive at the retail price of Rs 150/- then the mark up is Rs 50/- and the mark up percentage is 50%. Marquee A sign used to display a stores name and or logo Maximum Retail Price (MRP) The selling price marked on the product, inclusive of taxes payable by the end customer. This is a terminology used in India. As per statutory regulation all packaged goods in India must have a marked MRP. Retailers are permitted to sell below MRP but not above. MBO Multi Brand Outlet. This refers to a retail store that keeps multiple brands e.g. Shoppers Stop. Merchandise Mix The types or mix of products that are available for customers to purchase.

Minimum Base Quantity (MBQ) Also known as Base Stock refers to the minimum level of stock the retailer plans carry in a store. This includes the Minimum Display Quantity (MDQ) and the back up stock (if there is a storage section in the store). The Base stock figures are flexible and may change basis the season. Minimum Display Quantity (MDQ) Refers to the minimum stock the retailer must have on display at any point. This is determined by the area that has been allocated to the category and the minimum variety that must be maintained on display. E.g. If ladies bags have been allocated

15 shelves of 10 each for display, and each shelf carries 20 bags, then the MDQ becomes 15 x 10 x 20 = 450 bags. Minimum Order Quantity or MOQ Refers to the minimum order that a vendor will accept for a particular product e.g. when ordering fabrics from a textile mill they may insist on a mimimum order quantity of 1,000 meters since that is the length required for cost effective production. MIS (Management Information System) MIS is a planned system of collecting, storing and disseminating data in the form of information and reports needed to carry out the functions of management. Mix and match Normally used for the salwaar, kameez and dupatta category. These are the three elements of a popular Indian dress form where each piece is sold separately and customers can put the ensemble together as they like. 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. It is the ideal stock plan. Mom and pop stores Independent stores that are owned and run by the family unit ( by mom and pop). The bulk of the stores in India fall in this category. Moment Of Truth This is a customer service concept coined by Jan Carlzon former Chairman of Scandinavian Airlines. It refers to all the points of contact or interaction between a customer and a firm that gives the customer an opportunity to form or change their impression about the firm e.g. a customers impression about a retailer is affected by the advertising they see, by the store, by the sales staff, the cashier etc. A customer may be satisfied by the entire experience but if (s)he is made to stand in a billing queue for 20 minutes, that one moment of truth is capable of spoiling the entire experience. (Also see First Moment of Truth) MRTP(Monopolies and Restrictive Trade Practices) An act introduced by the Govt. of India to protect the consumer by preventing the formation of cartels and monopolies and by investigating and ruling against unfair trade practices. Mystery Shoppers People hired by retailers to pose as customers and observe their operations right from sales presentations to how well displays are maintained to in home service calls.

Narrow and deep Refers to a product merchandising approach of stocking large amounts of a few product categories or brands. Net sales The revenues received by a retailer during a given time period after deducting customers returns, markdowns , and employee discounts. Niche A clearly identifiable segment of a larger consumer market e.g. within the kids wear category pre-teens is a niche that has not been explored. Non Selling area All floor space used in supporting activity including stock rooms, cash office , entrances, show windows, elevators, offices, generator rooms, alteration spaces. Non-durables Products that are used up in a few uses e.g. soaps, shampoos Number of weeks cover The number of weeks of current sales represented by the current stock e.g. if the current sales is Rs 1 lac per week and the current stock is Rs 12 lac then the store is carrying 12 weeks of stock. Obsolescence The outmoding of a product due to a change in fashion/ technology before its usefulness has been exhausted. Off price chain Stores that sell branded apparel and accessories, footwear etc and sell them at a discounted or everyday low prices in an efficient, limited services environment. Occurs when retailers purchase manufacturers overruns at deep discounts for the purpose of offering consumers low prices on branded merchandise Omnichannel retailing Selling through multiple shopping channels, including a combination of 2 or more of the following - mobile internet devices, television, radio, direct mail, catalogue, brick and mortar retail stores and online. Open to Buy The difference between the planned purchases and purchase commitments already made by a buyer for a given time period, often a month. It is what the buyer has left to spend at any point in a month

Operating Expenses An accounting term used in all businesses. It indicates sum of all expenses used for running a business. Opportunity Costs Benefits that are given up by choosing one type of opportunity over another e.g. If an individual puts money in a business then the opportunity cost he incurs is the interest that the money would earn if he put it in a bank instead. Organization Chart or Organogram A graphically display of the reporting relationships within a firm Over stored 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 Overage The amount by which a physical inventory exceeds book inventory or the amount by which the actual drawer amount exceeds the reconciled amount at the time the drawer is closed. Overbought The condition where a buyer has committed to purchases exceeding the planned purchase allotment for a merchandising period. Packing Slip A slip that accompanies each carton of goods in a shipment and that gives the list of products and quantities of each product in the carton. Penetration pricing A pricing strategy that uses low profit margins to generate greater sales; usually used to quickly gain market share. Per sq ft per day (PSFPD) This refers to sales per sq. ft. per day. It refers to the sales achieved on a per foot basis everyday. Also see Sales Per Foot (SPF). Periodic inventory A method of determining the value of retail merchandise at periodic intervals by performing a physical count of the items in stock. Perpetual inventory control A method of inventory control in which the number of units and the total value of inventory can be obtained at any time from the stock records. In this method all additions (purchases) and withdrawals (sales) are recorded as they occur, in order to

provide a running stock balance. Physical verification of the same is done by counting a certain number of items on a regular basis (daily, weekly or monthly) so that, by the year end, every item has been physically counted at least once. If there is any mismatch (due to human error, leakage, pilferage, loss) between the physical quantity and the quantity shown in the inventory records, the records are adjusted accordingly. Picking ticket A list of items used at the warehouse for physically gathering items for shipment. Picking tickets typically include item and customer information, where the item is physically located (the bin), quantity ordered, and a place to write the actual quantity of the item being shipped. Pilferage Theft in a store. This could be theft by consumers or by staff. Pilferage Theft. Goods that go missing because they are stolen. Pink collar worker A person who is holding a job in the type of employment traditionally held by women e.g. secretarial, phone operators, nursing, waiting on tables etc (also see White Collar and Blue Collar workers) Planogram A planogram is a visual plan showing the physical allocation of products within a Store. Point of Purchase (POP) The physical location at which goods or services are sold to customers. Also called Point of Sale. Point of Sale (POS) The physical location at which goods or services are sold to customers. Also called Point of Purchase. Post-Purchase Dissonance A condition of conflict or anxiety post making a purchase. This could be as a result of inconsistency between one's beliefs and one's actions e.g. being against the slaughter of animals and buying a snakeskin bag, or on account of feeling that one has made an incorrect decision e.g. the product was beyond the budget. Predatory Pricing A pricing strategy that attempts to destroy competition by selling goods and service at extremely low prices.

Prestige pricing A pricing strategy that assumes consumers will not buy goods and services at prices deemed too low, since they may fear it is of poor quality Price Club A price club is a retail store, usually selling a wide variety of merchandise, in which customers pay annual membership fees in order to shop. The clubs are able to keep prices low due to the no-frills format of the stores. In addition, customers are required to buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. Also known as a cash and carry store. Price Elasticity of demand It is a measure of how consumers react to a change in price. It refers to the change that is likely to happen to demand for a product as the price changes. In other words, it is percentage change in quantity demanded by the percentage change in price of the same commodity. Price inelastic demand means a producer can raise prices without much hurting demand for its product and price elastic demand would indicate that a small increase in price will lead to a relatively larger fall in demand. Price Line A price point that is selected by a company for its business. Different price lines are chosen to appeal to target customers. Stores carry product only at these selected price points. Price Range The width of price points that a store carries from the lowest or lead in price point to the highest price point e.g. a store may have a price range for t/shirts starting at Rs 199/- and ending at Rs 699/-. Price war A situation in a very competitive environment when one retailers attempts to underprice another, and results in retailers continuing to lower prices in turn to undercut the other. Increased sales may result, but usually at the expenses of profits. Private label Merchandise that is developed by retailers under their own labels . Product facings this refers to the number of units in a retail display which face the customer. A single unit of a product is one facing wide, because its face ( front side of the product ) takes up one space. The overall shelf display is measured in terms of the

number of facings per product. For e.g. if a supermarket shelf has 50 shampoo bottles. These are stacked as follows : 10 bottles face the consumer and each bottle has 5 bottles stacked behind, then the number of product facings for shampoo is seen to be 10 since these are the number of units that face the customer. Product life Cycle A graphic representation of the expected behavior of a good or service over its life. The traditional cycle has four stages introduction , growth maturity and decline ( picture ?) Product line A board category of products that have similar characteristics and uses e.g. Trousers or shirts. Profit center A distinct area within your company for which sales, expenses, and profits can be calculated separately from the total sales and expenses of the whole company e.g. each department in a retail store may be treated as a separate profit center. Promotional calendar A calendar that shows the promotions planned over a given period. The promotion calendar is normally made well in advance for the whole financial year. This allows all the departments concerned Store operations, Merchandising and Buying and Marketing to plan efficiently. Promotional mix Different promotional methods that include advertising, visual merchandising, personal selling, publicity, special events, and other sales promotional activities Proof of Delivery Verification provided by a freight company that a shipment was delivered at a certain time and place and was signed for by the recipient Psychographic data Information on the lifestyles, consumers

interests,

and

opinions

of

Psychological Obsolescence The loss of value or usefulness resulting from advances in technology and the passage of time. e.g. changes in fashion makes us change our clothes even if they are not worn out , but in our minds they are no longer wearable. Psychological Pricing Psychological pricing is a marketing practice based on the

theory that certain prices have a psychological impact for e.g. prices that are market at Rs 99/-. The assumption is that consumers will perceive a price point of Rs 199/- as significantly lesser than a price point of Rs 200/-. Purchase order (PO) A record containing the details of an order for merchandise that has been placed with a vendor. Typically, the PO includes the items purchased, costs, discount terms, and shipping information. Quantity discount A reduction in price offered on the purchase of large volumes of product. Quick Response (QR) Enables a retailer to reduce the amount of inventory it keeps on hand by ordering more frequently and in lower quantity. Rack jobber Special type of vendor who is assigned shelf space in a store with the Most Viewed responsibility for keeping it stocked with quick-turning merchandise FII in retail could go to 49% Range plan A seasonal plan that has an item wise list of the lines to be ordered, along Italian luxury brand Kiton to with the quantities , costs and margins. launch in India Big Bazaar to set up mobile Rate of sale shops in trucks The number of pieces selling per option per outlet per week for all outlets stocking the option e.g Rate of sale for a white, full sleeve shirt with button EY Report: India attractive down collar that sold 450 pcs across 10 stores over 15 weeks will be 3 i.e 3 destination for FDI pcs sold per week per store for this option. Centre to overturn Delhi govts rejection of FDI in retail? Reach Refers to the number of people who will be exposed to one or more promotional messages Ready to stitch Refers to the sale of fabric pieces or sets of fabric which can be stitched into a finished garment. E.g. a cut piece of fabric for a trouser will be sold as a ready-to-stitch trouser. Sometimes, the manufacturer may even add the trims like buttons and zips to make it easier for the customer to convert the product into a wearable garment. You can even have a ready to stitch salwaar kameez dupatta where all 3 pieces of the garment are provided in fabric form. Reductions Current Newsletter All changes in prices that lower the value. It includes markdowns, employee and consumers discounts and inventory shortages Reorder levels

Reorder level (or reorder point) is the inventory level at which a company (FY 2013 - 14) would place a new order. Quarter Results Reorder Point The stock level at which new orders must be placed Retail Chain A firm that consists of multiple retail units under common ownership and usually has some centralization of decision making. Retail Life Cycle A theory asserting that institutions like the goods and services they sell pass through identifiable cycles with four stages innovation, accelerated development, maturity and decline Retail Merchandising The science of offering the right goods to ultimate customers at the right price, at the right location, and at the right time. Retail Mix The mix of variables which form the overall retailing strategy. including location, merchandise, communications, price, services, physical attributes and personnel, Retail POS System (Retail Point of Sale System) A computerized system made up of retail software and point of sale hardware. It is used for billing and for recording transactional data. ROI Returns on Investment = (annual profit)/(investment capital) . This is a financial calculation and refers to the ratio of money gained or lost on an investment relative to the amount of money invested. ROI is usually given as a percent and calculated on an annual basis. It is used to compare returns on investments. For instance, a Rs 1,000 investment that earns Rs 50 in interest generates more cash than a Rs 100 investment that earns Rs 20 in interest, but the Rs 100 investment earns a higher return on investment. Rs 50/Rs 1,000 = 5% ROI Rs 20/Rs 100 = 20% ROI Rotating stock A method of moving stock around on the shop floor to ensure that new and old merchandise is alternately given an opportunity for display . RTV Abbreviation for Return to Vendor. Refers to goods that are to be returned to the vendor. RTW: Abbreviation for Ready-to-wear All garments that can be worn off the shelf fall into this category. Also referred to as ready made garments.

Second

Safety Stock The extra inventory kept on hand to protect against out of stock conditions due to unexpected demand and delays in delivery Sale leaseback The practice of retailers building new stores and selling them to real estate investors, who lease the property back to the retailers on a long term basis Sale or return Goods on consignment is a trading arrangement in Sales Channel A distribution route e.g. a brand can choose to sell its products through multiple channels including own stores, department stores, distributors etc. Sales forecast A prediction of future sales for a specified period under a proposed marketing plan Sales per square foot (SPF) Net sales divided by the square feet of retail selling space. It can be calculated on a daily, weekly, monthly or annual basis. It is calculated as sales/ square feet of space. E.g. if a 1000 sq ft stores does a daily sale of Rs 30,000/- then the daily SPF is Rs 30/-. Same store sales A common metric in the retail industry, compares sales of stores that have been in the business for a year or more. This measure allows analysts to determine what portion of new sales has come from sales growth and what portion from opening new stores. Also known as like for like sales. Seasonal merchandise Merchandise purchased for a specific season that is only in demand for a short period of time (e.g., summer, Christmas, back to school, etc.). SEC Socio Economic Classification. A method of classifying the target audience on the parameters of education and occupation only. Under this method of classification SEC A normally refers to the well heeled , while SEC D and E refer to the less prosperous and less educated members of society. Seconds Merchandise that contains defects or damages. Selling area Total area used in selling including display area, customer aisles, fitting rooms, and billing area. Shelf talkers

Form of signage used in a store to announce the offers/prices/product features etc. Usually placed on shelves or fixtures near the products for which it is applicable. Shop floor The selling area in a retail store Shop in shop A pre-determined area within a store that is given to a brand normally on consignment terms. The area is managed and branded by the brand. Shoplifting The act of stealing merchandise normally by people posing as customers - from a store that is open for business. Showrooming Refers to the customer practice of viewing merchandise in a store and then buying it for the best deal online. Shrinkage The difference between actual physical stock in the store and book records of stock. Shrinkage represents actual losses of merchandise through shoplifting, employee theft, record keeping errors, breakage, etc. Skim pricing or price skimming Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. Companies like Intel, I-phone and PC brands use this strategy. At the launch of a new product it is priced high and as newer models are introduced the price of the older model keeps dropping. Skimming A pricing strategy that aims when stores charge the highest price possible. They are willing to make do with lower sales since the profit margin on each item is high. SMEs Abbreviation for Small to Medium enterprises. However, what exactly an Small to Medium Enterprise is depends on whos doing the defining. E.g. uses the term SME to refer to businesses with fewer than 500 employees, India it refers to businesses with a turnover of under Rs 10 crore ( as current definition year 2012)

SME or Canada while in per the

Soft furnishings Refers to the line of home textiles that includes linen, tapestry, curtains etc. Also known as made ups. Soft Goods Apparel and linens are collectively termed as soft goods. Specialty Department Store A department store format that focuses on apparel and soft home goods ( e.g. Westside)

Specialty Store A retailer that concentrates on selling one product or service line. In other words, a store specializing in one category of merchandise, frequently fashion-related e.g. Van Heusen stores are mens wear specialty stores. Staple Goods Staple goods are products purchased regularly and out of necessity e.g. in a supermarket the staples would include rice, wheat, sugar. Demand for these products does not change much with fall and rise in prices. However, these products generally do not have a high profit margin. Stock to sales ratio A figure that indicates the relationship between planned sales and the amount of inventory required to produce those sales. Specifically it is the ratio between the beginning of month stock figure and the planned sales for the same month. Stock Keeping unit (SKU) Refers to a unique product description. E.g. For mens shirts a SKU would represent a unique size / style / color combination - a white men's shirt with french cuffs and a size 40 neck in half sleeve. All items that fit this description will come under the same SKU. Stock Turnover Stock turn refers to the number of times a retailer rotates the average value of his stock, during a specific period, usually one year. Stock turnover can be computed in units or rupees. It is normally calculated on an annualized basis as Sales/ Average stock. E.g. if sales for a year are Rs 12 lacs and the average stock carried by the store was Rs 4 lacs then the stock turnover achieved was 3 i.e. the retailer rotated the average value of his stock 3 times in the year. Store directory A form of store signage that lists all the departments in a store and indicates their locations. Normally put at the store entrance and at key vantage points. Store front The total physical exterior of a store. It includes the marquee, entrances , windows , lighting and construction materials Store layout The spatial arrangement of selling and non-selling departments, aisles, fixtures, display facilities and equipment in the proper relationship to each other and the fixed elements of the structure. String Store Market An unplanned shopping area comprising a group of retail stores, often with similar or compatible product lines, located along a street or highway Super built up area Total area of a store for which rent is being paid. Besides the physical area of the store it includes a proportional share of areas devoted to common facilities like lifts, corridors, verandahs etc.

Super Saturday An American term used for the Saturday that comes before Christmas. It is normally a bumper day for retail sales.

Super specialty store A store that is very highly specialized in a particular kind of product e.g. The T/shirt store Supermarket A retail store which sells groceries, dairy products, meats and produce along with some non food items Supply chain Supply Chain refers to the distribution channel of a product, from its sourcing, to its delivery to the end consumer (also known as the value chain). The supply chain is typically comprised of multiple companies. Swing tickets (also known as swing tag or hang t A tag attached to a piece of merchandise giving information about the product. Generally it is related to the products price, composition, or proper care and use. It could also be a promotional tag, giving other relevant information about the product. Tag /ticket/ swing ticket A physical label attached to merchandise for sale. Normally carried information on the product or the company and carries the bar code and the price information. Target market The specific group or groups of consumers on which a retailer focuses its marketing activities Tariff Tax on goods coming into a country Tearsheet Sheets of magazines that are torn to be used later. Designers for instance maintain tear sheets of fashion styles to use them as references when planning the new seasons lines. Terms of sale Arrangements between merchandise source and retailer relative to time period for payment of invoice. Through the line (TTL) Advertising activity involving both above and below the line communications. This approach allows brands to engage with a customer at multiple points - for example, the customer will see the television commercial, hear the radio advert and be handed a flyer on the street corner. This enables an integrated communications approach where consistent messaging across multiple media. (Also see Above the line and Below the line)

Ticket Size This refers to the value of the bill e.g. if you have bought two items worth Rs 1000/each then the value of the bill or the ticket size is Rs 2000/Ticket Value The value of a single bill Till The cash register/ billing counter in a retail store. Also known as Cash Till Top line The gross sales done by a company. It is called the top line since it is the first line on a companys Profit & Loss statement Top- down planning Involves the top level of management estimating total sales for the upcoming period in a particular product category Total mark up The total mark up that is achieved across all products in the category. Trade Diversion The loss of trade from an existing store or centre as a result of a new retail development taking place, usually measured as a percentage of its turnover before the opening of the new development. Trading Area The geographic area from where a store gets the bulk of its customers. Trading down (down trading) Refers to the act of replacing current purchases with items that may have less features/ poorer quality but are less expensive. In periods of high inflation, customers tend to trade down to manage their household budgets. Trading up This refers to the act of replacing current purchases with items that have more/ better features and are consequently more expensive. In periods of prosperity customers tend to trade up to enjoy a better product experience. Traffic Refers to the people in an area or those walking into a store. A high traffic store is one which sees a lot of walk ins. Trunk show Retail events where suppliers present their merchandise directly to the final customer. Designer Trunk shows are a popular retail event. The designer is normally present at the store at the time and interacts directly with the final customer.

Up marketAppealing to high income consumers UPC (Universal Product Code)The standard for encoding a set of lines and spaces (or barcodes) that can be scanned and interpreted by retail software to identify a product.
Vanilla Retailers The non anchor retailers in a mall. They typically occupy smaller spaces between 1,000 and 5,000 sq ft. Variety Store A retail establishment selling a wide assortment of inexpensive and popularly priced goods and services , such as stationery, gift items, womens accessories, health and beauty aids , light hardware, toys, house wares, and confectionary items. Vendor An individual or organization from which a retailer purchases merchandise for resale. Also called a supplier. Venture Debt A term loan offered only to venture capital backed firms Visual merchandising A display arrangement including the layout of store facilities and the placement of merchandise in the store to attract the consumers attention and stimulate customers desire. Want book A note book in which store employees record items desired by customers but un stocked or out of stock Warehouse Store A warehouse store is a large format retailer with an every-day-low-price cum discount offer in a no frills setting. The basic shed-like environment lends it the name warehouse retailer e.g. Wal-mart. Waterfalls Wall mounted display fixtures which are sloping. Wheel of Retailing A theory stating that retail innovators often first appear as low-price operators with a low-cost structure and low profit margin requirements. Over time these innovators upgrade the products they carry and improve store facilities and customer services. They then become vulnerable to new discounters with lower cost structures. White Collar worker A person who performs professional, managerial, or administrative work. The term refers to the white dress shirts of male office workers common through most of the nineteenth and twentieth centuries in Western countries. Typically, white collar work is performed in an office. (also see Blue Collar and Pink Collar workers)

White goods Large electrical goods used domestically, such as refrigerators and washing machines, typically white in color. Wholesaler A business intermediary who buys goods in bulk from the manufacturer and re-sells them to the retailer in smaller quantities. Also known as a Distributor. Width of Assortment Refers to the number of distinct goods/service categories which a retailer carriesrries. Width of Range The number of styles offered in a range. A range will be narrow if it has fewer styles and wide if it has many styles. A retailer may have a wide and shallow range or a narrow and deep range (also see depth of range) Word of Mouth Communication Refers to the passing of information by verbal means, especially recommendations, but also general information, in an informal, person-to-person manner. Word of mouth is typically considered a face-to-face spoken communication, although phone conversations web dialogue, such as online profile pages, blog posts, message board etc. are now included in the definition of word of mouth. Wrap Rage The frustration felt by a consumer when trying to free a product from its packaging esp when the packaging is difficult to open.

Year on Year A comparison with the same period last year e.g. A statement saying sales in February were up 20% year on year would mean that compared with sales last February, sales in this year February up by 20%. Year To Date (YTD) A term used to describe the performance of a business so far in the business year. For example if a company works a Jan- Dec year , the sales of a company are Rs 60 lacs in the period Jan to May then the YTD sales as of June 1 are Rs 60 lacs. Zero Based Budgeting The practice followed when a firm starts each new budget from scratch and outlines the expenditures needed to reach its goals during that period. All costs must be justified each time a budget is done