THE RETAIL REFERENCE

The A–Z of
Retail Terminology

Clear definitions for the business of retail. Explore the language of stores, brands, buying, marketing, technology and the supply chain.

130 terms9 topicsOne retail reference

TERM TO KNOWRetail mediaRetail media is advertising sold through a retailer’s media offering, using its shopping environments, customer relationships or data to reach audiences.Explore the definition

Find your term.

From the shop floor to the supply chain.

130 terms · A–Z

Browse by topic ↑

A

10 terms

Marketing

A/B testing

A/B testing compares two versions of a message, page or experience using separate groups to measure their effect on a defined outcome.

Marketing

Ad exchange

An ad exchange is a digital marketplace where advertising inventory is bought and sold, often through automated auctions.

Supply chain

Advance shipping notice (ASN)

An advance shipping notice is a message sent before a delivery that describes the goods and shipment expected to arrive.

Marketing

Affiliate marketing

Affiliate marketing is a commercial arrangement in which a publisher or partner earns compensation for driving a tracked action, such as a sale or qualified lead.

Retail real estate

Anchor store

An anchor store is a major tenant intended to attract customers to a shopping centre or retail development.

Boutiques & selling

Appointment shopping

Appointment shopping lets customers reserve a time to receive dedicated assistance in a store, showroom or virtual session.

Buying & merchandising

Assortment depth

Assortment depth describes how much choice or inventory a retailer carries within a product category or selection, using a clearly stated definition.

Buying & merchandising

Assortment planning

Assortment planning determines which products a retailer will offer, in what mix and quantities, for a particular customer, channel, location or season.

Marketing

Attribution

Attribution is the method used to assign credit for a conversion or sale to marketing interactions.

Small business

Average order value (AOV)

Average order value is the average monetary value of orders during a defined period.

B

8 terms

Retail technology

Barcode

A barcode is a machine-readable symbol that encodes information using a pattern a scanner or camera can interpret.

Retail real estate

Base rent

Base rent is the stated minimum or fixed rent payable for a leased premises before separately specified charges or sales-based rent.

Retail fundamentals

Big-box retailer

A big-box retailer operates large stores designed to carry a broad product selection or a deep assortment within a major category.

Boutiques & selling

Boutique

A boutique is a retail shop with a focused, curated assortment, often built around a particular aesthetic, product category or customer.

Marketing

Brand equity

Brand equity is the value associated with a brand’s identity, awareness and customer perceptions beyond the functional characteristics of its products.

Small business

Break-even point

The break-even point is the sales level at which total revenue covers the costs included in a specified analysis, leaving neither profit nor loss.

Retail fundamentals

Brick-and-mortar

Brick-and-mortar describes a business that serves customers in a physical location, such as a shop, showroom or department store.

Supply chain

Buy online, pick up in store (BOPIS)

BOPIS lets a customer place an order online and collect the merchandise at a physical retail location.

C

20 terms

Boutiques & selling

Capsule collection

A capsule collection is a deliberately limited group of products connected by a theme, purpose, collaboration or styling approach.

Buying & merchandising

Case pack

A case pack is the defined quantity or assortment of units supplied together in one ordering or shipping package.

Small business

Cash flow

Cash flow is the movement of cash into and out of a business over a stated period.

Retail fundamentals

Category killer

A category killer is a large specialist retailer with a particularly extensive assortment in one product category or closely related categories.

Marketing

Click-through rate (CTR)

Click-through rate is the percentage of recorded impressions that result in clicks on a link, ad or other measured element.

Boutiques & selling

Clienteling

Clienteling is the practice of building ongoing, individual customer relationships using knowledge of preferences, purchases and service needs.

Retail real estate

Co-tenancy clause

A co-tenancy clause links specified lease rights or obligations to the presence, opening or operation of other tenants in a retail property.

Retail real estate

Common area maintenance (CAM)

Common area maintenance refers to costs associated with operating and maintaining shared areas of a commercial property, as defined by the lease.

Boutiques & selling

Concept store

A concept store brings products and experiences together around a defined idea, lifestyle or point of view rather than a single conventional merchandise category.

Retail real estate

Concession

A retail concession is an arrangement allowing a brand or operator to trade within another business’s premises under agreed commercial terms.

Boutiques & selling

Consignment

Consignment is an arrangement in which an owner places goods with a seller, which pays the owner an agreed share or amount when the goods sell.

Small business

Contribution margin

Contribution margin is sales revenue minus the variable costs associated with those sales.

Marketing

Conversion rate

Conversion rate is the share of a defined audience or set of visits that completes a specified action, such as purchasing or registering.

Small business

Cost of goods sold (COGS)

Cost of goods sold is the cost assigned to the products sold during an accounting period.

Supply chain

Cross-docking

Cross-docking moves incoming goods through a distribution facility to outbound transport with little or no long-term storage.

Boutiques & selling

Cross-selling

Cross-selling is offering a complementary product alongside an item a customer is considering or buying.

Marketing

Customer acquisition cost (CAC)

Customer acquisition cost is the amount a business spends to acquire a new customer over a defined period or within a measured campaign.

Marketing

Customer lifetime value (CLV)

Customer lifetime value estimates the revenue or economic contribution a customer is expected to generate across a business relationship.

Retail technology

Customer relationship management (CRM)

Customer relationship management is the practice and supporting software used to organize interactions and information about customers.

Supply chain

Cycle count

A cycle count is a scheduled physical check of a selected portion of inventory, repeated over time rather than counting all stock at once.

D

4 terms

Buying & merchandising

Dead stock

Dead stock is inventory that is not selling and is unlikely to sell through normal trading under current conditions.

Retail fundamentals

Department store

A department store sells multiple categories of merchandise through distinct departments, commonly including clothing, beauty, accessories and home goods.

Retail fundamentals

Direct-to-consumer (DTC)

Direct-to-consumer is a business model in which a brand sells its products directly to end customers instead of relying solely on wholesale intermediaries.

Supply chain

Drop shipping

Drop shipping is a fulfilment arrangement in which a seller accepts a customer order and a supplier or other partner ships the goods directly to that customer.

E

2 terms

Retail fundamentals

Ecommerce

Ecommerce is the buying and selling of goods or services through digital ordering channels, including websites, apps and online marketplaces.

Retail technology

Electronic data interchange (EDI)

Electronic data interchange is the structured exchange of business documents between organizations’ computer systems using agreed formats.

F

3 terms

Marketing

First-party data

First-party data is information a business collects directly through its own relationships and interactions with customers or users.

Retail fundamentals

Flagship store

A flagship store is a prominent location that represents a retailer’s or brand’s identity through its scale, setting, assortment, design or services.

Retail fundamentals

Footfall

Footfall is a count of visits or people passing through a defined physical location over a stated period.

G

3 terms

Retail technology

Global Trade Item Number (GTIN)

A Global Trade Item Number is a GS1 identifier used to identify a trade item, such as a product or a defined packaging level.

Small business

Gross margin

Gross margin is the share of net sales remaining after subtracting cost of goods sold, usually expressed as a percentage.

Buying & merchandising

Gross margin return on inventory (GMROI)

GMROI compares gross profit generated during a period with the average cost value of inventory held during that period.

H

1 term

Retail technology

Headless commerce

Headless commerce separates the customer-facing storefront from the systems that manage commerce functions, connecting them through interfaces such as APIs.

I

2 terms

Sourcing

Incoterms®

Incoterms are standardized trade rules published by the International Chamber of Commerce that allocate specified delivery responsibilities, costs and risks between buyers and sellers.

Buying & merchandising

Inventory turnover

Inventory turnover measures how many times inventory is sold and replaced over a period, commonly using cost of goods sold divided by average inventory at cost.

J

1 term

Supply chain

Just-in-time (JIT)

Just-in-time is an approach that schedules the arrival or production of goods close to when they are required, limiting unnecessary inventory.

K

1 term

Small business

Keystone pricing

Keystone pricing sets a retail selling price at twice the chosen wholesale or product-cost basis.

L

7 terms

Sourcing

Landed cost

Landed cost is the total cost of getting a product to a specified destination, using a stated set of included expenses.

Supply chain

Last-mile delivery

Last-mile delivery is the final stage of transporting an order from a local fulfilment point to the customer or designated collection location.

Buying & merchandising

Lead time

Lead time is the elapsed time between a defined starting event and the completion of a related process, such as placing an order and receiving usable stock.

Small business

Like-for-like sales

Like-for-like sales compare revenue from a defined set of comparable stores or operations across periods, excluding specified changes to the business base.

Buying & merchandising

Line sheet

A line sheet is a concise selling document that presents a brand’s products and the information a wholesale buyer needs to place an order.

Supply chain

Logistics

Logistics is the planning and execution of the movement and storage of goods and related information.

Marketing

Loyalty programme

A loyalty programme is an organized system of benefits intended to recognize and encourage an ongoing customer relationship.

M

5 terms

Sourcing

Manufacturer

A manufacturer makes products by transforming or assembling materials and components.

Buying & merchandising

Markdown

A markdown is a reduction from a product’s previous selling price, often used to support clearance, seasonal transitions or a revised pricing position.

Retail technology

Marketplace

An online marketplace is a platform where multiple sellers offer goods or services to customers.

Small business

Markup

Markup is the amount added to a product’s cost to set its selling price, expressed in currency or as a percentage of cost.

Sourcing

Minimum order quantity (MOQ)

Minimum order quantity is the smallest order a supplier will accept under a particular set of terms.

N

2 terms

Small business

Net payment terms

Net payment terms specify the period within which the full amount of an invoice is due, subject to the agreed starting point and conditions.

Small business

Net sales

Net sales is sales revenue after the relevant deductions for returns, discounts and allowances.

O

5 terms

Retail real estate

Occupancy cost

Occupancy cost is the combined cost of occupying and operating from a retail premises, using a clearly defined set of expenses.

Retail fundamentals

Off-price retail

Off-price retail sells branded merchandise at prices below conventional full-price retail, often using opportunistic buying and a changing assortment.

Retail fundamentals

Omnichannel retail

Omnichannel retail connects shopping channels so customers can move between stores, websites, apps and service teams with a coordinated experience.

Buying & merchandising

Open-to-buy (OTB)

Open-to-buy is the uncommitted merchandise purchasing capacity remaining within a retailer’s inventory plan for a defined period.

Retail technology

Order management system (OMS)

An order management system coordinates the information and processes used to manage customer orders from receipt through fulfilment and after-sales handling.

P

12 terms

Retail real estate

Percentage rent

Percentage rent is rent calculated using a stated percentage of a tenant’s sales, often after sales exceed an agreed threshold.

Boutiques & selling

Personal shopping

Personal shopping is a service in which a retail professional helps an individual select products around their preferences, needs, size or budget.

Supply chain

Pick and pack

Pick and pack is the fulfilment process of collecting the products required for an order and preparing them for dispatch.

Buying & merchandising

Planogram

A planogram is a diagram or specification showing where products should be placed on shelves, fixtures or other selling space.

Retail technology

Point of sale (POS)

A point-of-sale system is the combination of software and equipment used to record a sale and manage checkout.

Retail fundamentals

Pop-up shop

A pop-up shop is a temporary retail location opened for a defined period, event, product launch or market test.

Buying & merchandising

Preorder

A preorder is an order accepted before an item is available for immediate fulfilment.

Sourcing

Private label

A private-label product is sold under a retailer’s or brand owner’s own label, typically manufactured by another business.

Sourcing

Procurement

Procurement is the broader process of obtaining the goods and services a business needs, from defining requirements through purchasing and supplier management.

Boutiques & selling

Product drop

A product drop is a planned release of merchandise at a specified time, often organized around a collection, collaboration or limited quantity.

Retail technology

Product information management (PIM)

Product information management is the process and software used to organize, enrich and distribute product information across selling channels.

Buying & merchandising

Purchase order (PO)

A purchase order is a document a buyer issues to a supplier specifying goods or services it intends to purchase under stated terms.

Q

2 terms

Retail technology

QR code

A QR code is a two-dimensional barcode that can encode information such as a web address or product-related data.

Sourcing

Quality control (QC)

Quality control is the inspection and checking of products or processes against defined requirements.

R

12 terms

Retail technology

Radio frequency identification (RFID)

RFID uses radio signals to read information from tags attached to products or other objects.

Supply chain

Reorder point

A reorder point is the inventory threshold that triggers replenishment under a defined stock-control method.

Buying & merchandising

Replenishment

Replenishment is the process of restoring inventory at a store, warehouse or selling location to meet expected demand.

Sourcing

Request for quotation (RFQ)

A request for quotation asks suppliers to provide pricing and commercial terms for a clearly specified requirement.

Boutiques & selling

Resale

Resale is the sale of goods that have previously been owned, including secondhand fashion, accessories and home products.

Buying & merchandising

Retail buyer

A retail buyer selects and purchases merchandise for a retailer’s assortment, balancing customer demand, commercial targets and stock commitments.

Marketing

Retail media

Retail media is advertising sold through a retailer’s media offering, using its shopping environments, customer relationships or data to reach audiences.

Marketing

Retail media network (RMN)

A retail media network is the business and technology operation through which a retailer offers advertising opportunities to brands and other advertisers.

Retail real estate

Retail real estate is property used for selling goods or services to customers, including storefronts, shopping centres and retail units within mixed-use developments.

Retail fundamentals

Retailer

A retailer sells goods or services to the final customer for personal or household use, through stores, websites or other sales channels.

Marketing

Return on ad spend (ROAS)

Return on ad spend compares revenue attributed to advertising with the amount spent on those ads.

Supply chain

Reverse logistics

Reverse logistics manages goods moving back from customers or downstream locations for return, repair, refurbishment, resale, recycling or disposal.

S

13 terms

Supply chain

Safety stock

Safety stock is inventory held as a buffer against uncertainty in demand, replenishment timing or supply.

Retail real estate

Sales per square foot

Sales per square foot measures sales generated for each square foot of a defined store area over a stated period.

Buying & merchandising

Sell-through rate

Sell-through rate measures the proportion of a defined inventory quantity sold during a stated period.

Supply chain

Ship from store

Ship from store is an order-fulfilment method in which a retail store dispatches goods to a customer using its own inventory.

Retail real estate

Shop-in-shop

A shop-in-shop is a distinct branded selling area located inside another retailer’s store.

Boutiques & selling

Showroom

A showroom is a space used to display products for customer selection, appointments or trade buying, which may operate separately from inventory fulfilment.

Retail fundamentals

Shrinkage

Shrinkage is the difference between recorded inventory and the stock actually available, after accounting for legitimate inventory movements.

Buying & merchandising

Size curve

A size curve is the planned distribution of inventory across sizes for a product, category or customer group.

Sourcing

Sourcing is the process of identifying, assessing and selecting suppliers or production options for a business’s requirements.

Retail technology

Stock keeping unit (SKU)

A stock keeping unit is an internal identifier a retailer uses to distinguish and manage a specific sellable product or variant.

Buying & merchandising

Stockout

A stockout occurs when an item is unavailable to meet demand at a particular location or channel.

Sourcing

Supplier

A supplier is a business or individual that provides goods or services to another organization.

Supply chain

A supply chain is the network of organizations, activities and resources involved in making a product available to its customer.

T

6 terms

Sourcing

Tech pack

A tech pack is a specification document used to communicate how a product should be made, particularly in apparel and accessories.

Retail real estate

Tenant improvement allowance (TIA)

A tenant improvement allowance is a landlord’s agreed contribution toward preparing or altering a leased space for a tenant’s use.

Supply chain

Third-party logistics (3PL)

A third-party logistics provider performs logistics services for another business, such as warehousing, fulfilment or transport management.

Retail real estate

Trade area

A trade area is the geographic area from which a store draws, or expects to draw, customers.

Retail real estate

Triple net lease (NNN)

A triple net lease generally requires a tenant to pay base rent plus agreed property taxes, building insurance and maintenance or operating costs.

Boutiques & selling

Trunk show

A trunk show is a time-limited presentation of a brand’s collection, often hosted by a retailer and sometimes attended by a designer or representative.

U

3 terms

Retail technology

Unified commerce

Unified commerce is an approach that brings core retail data and transactions across channels into a shared operational system or closely unified platform.

Small business

Units per transaction (UPT)

Units per transaction is the average number of product units sold in each completed transaction.

Boutiques & selling

Upselling

Upselling is recommending a higher-value version, configuration or service level than the option a customer initially considered.

V

1 term

Buying & merchandising

Visual merchandising

Visual merchandising is the presentation of products and retail spaces to communicate an assortment and help customers navigate and evaluate it.

W

5 terms

Retail technology

Y

1 term

Small business

Year-over-year (YoY)

Year-over-year compares a measure with the equivalent period one year earlier.

Z

1 term

Marketing

Zero-party data

Zero-party data is information a customer deliberately shares with a business about preferences, intentions or personal context.

Find your term.

No matching terms

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T