Retail Terminology – A
A
An anchor store is a large, prominent retail store that serves as a primary draw for customers to a shopping mall or center. It often has a long-term lease and provides steady revenue for the mall due to its ability to attract a significant number of shoppers.
Average Transaction Value (ATV)
ATV is the average amount spent by customers in a single transaction at a business. It is calculated by dividing the total sales over a period by the number of transactions during that same period. A higher ATV indicates that customers are purchasing more expensive items or a larger quantity of products per sale.
AOV is an e-commerce metric that measures the average dollar amount spent each time a customer places an order on a website or application. It is calculated by dividing the total revenue by the number of orders. AOV helps businesses understand their customers’ spending habits and assess the effectiveness of their pricing strategies.
Aging inventory refers to items that have been in stock for an extended period without being sold. This can indicate slow-moving or obsolete products that may consume valuable resources or warehouse space. Businesses analyze aging inventory to manage stock levels effectively and prevent excess inventory accumulation.
Audit
An audit is a systematic examination and evaluation of an organization’s financial statements, processes, or compliance with regulations to ensure accuracy, integrity, and adherence to standards and laws. Audits can be conducted internally by employees or externally by independent auditors and are essential for maintaining transparency and trust among stakeholders.