Retail Terminology – B
B
Backward Integration
Backward integration is a strategic move by a retail company to acquire control over its suppliers or to internalize supplier functions within the company itself. This approach allows retailers to streamline their supply chain, reduce costs, and gain more control over the production process. An example of backward integration in retail is when a clothing store starts producing its fabric or a supermarket begins farming its produce.
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a retail company’s financial health at a specific time. It lists the company’s assets (what it owns), liabilities (what it owes), and shareholders’ equity (the difference between assets and liabilities). Retailers use balance sheets to track performance, assess financial standing, and make informed decisions about asset management and future investments.
Bar code
Bar codes are machine-readable representations of data that encode product information into bars and alphanumeric characters. In retail, bar codes are scanned using barcode readers or scanners to quickly and accurately capture product details such as price, size, and stock levels. This technology enhances the point of sale efficiency, simplifies inventory management, and reduces pricing and stock control errors.
A backorder occurs when a retail product is out of stock but still in high demand, leading customers to place orders that cannot be immediately fulfilled. The retailer promises to deliver the product once it becomes available again. Backorders can indicate strong demand for a product but may also reflect challenges in inventory management. Retailers must communicate effectively with customers regarding expected wait times and fulfillment of back-ordered items.
Beauty Store
A beauty store, or a cosmetics store or beauty supply store, is a specialty retail business that sells beauty-related products such as cosmetics, hair-care items, skincare products, and beauty tools. Beauty stores range from large chains offering a glamorous shopping experience to smaller, independent retailers focusing on niche markets. They cater to consumers seeking personal grooming and beauty enhancement products.
Big Box Retailer
A big box retailer is a large retail establishment, typically part of a chain, that offers a wide variety of merchandise across multiple categories. These stores are characterized by their expansive floor space, a vast selection of products, and often lower prices due to economies of scale. Big box retailers are designed to serve as one-stop shops for consumers, providing everything from groceries to electronics under one roof.
A brick-and-mortar business is a traditional retail store that operates from a physical location where customers can visit in person. This model contrasts with e-commerce, which involves online-only sales. Brick-and-mortar stores allow customers to browse products, interact with sales representatives, and make purchases on-site. Examples include local shops, department stores, and supermarkets.
Brick and Click
The bricks-and-clicks business model combines both physical retail locations and online stores. This hybrid approach allows businesses to leverage the strengths of both channels, offering customers the convenience of online shopping and the tangible experience of visiting a store. Major retailers like Target and Walmart exemplify this model by maintaining physical stores and online platforms.
BOPIS (Buy Online, Pick Up In-Store)
BOPIS is an omnichannel retail strategy where customers purchase items online and pick them up at a physical store. This method enhances convenience for shoppers, reduces shipping costs, and drives foot traffic to brick-and-mortar locations. BOPIS orders are often fulfilled faster than traditional online orders since the products are already available in-store.
Bounce Rate
In digital analytics, the bounce rate measures the percentage of visitors who leave a website after viewing only one page without taking any further action. A high bounce rate indicates that users are not engaging with the site, which could suggest issues with content relevance or user experience. Reducing bounce rates is crucial for improving site engagement and conversion rates.
Boutique
A boutique is a small retail store specializing in fashionable clothing and accessories. Unlike larger retail stores, boutiques offer a curated selection of unique, high-quality items often sourced in limited quantities. Boutiques focus on personalized customer service and exclusive merchandise, making them distinct from mass-market retailers.
Brand equity refers to the value a brand adds to a product beyond its functional benefits. It encompasses brand recognition, awareness, and customer experience. Positive brand equity allows companies to charge premium prices and fosters customer loyalty, directly impacting sales volume and profit margins.
Breadth
In retail, breadth refers to the variety of product categories a store offers. For instance, a smoke shop might sell cigars, pipes, and humidors. Breadth is essential for meeting diverse customer needs and staying competitive. A broad product assortment can attract a wider customer base and cater to various preferences.
Broken Sizes
Broken sizes refer to the incomplete range of sizes available for a particular product, often due to high sales of certain sizes. If popular sizes are consistently out of stock, this situation can lead to stock imbalances and missed sales opportunities.
Bulk
Bulk refers to purchasing large product quantities, typically at a discounted rate, by businesses or resellers. These businesses often have to meet minimum order quantities set by the supplier to buy in bulk to reduce the per-unit costs of items. Bulk buying is expected in wholesale and warehouse clubs, where consumers benefit from lower prices for larger quantities.
Bundle Pricing
Bundle pricing is a strategy where multiple products are sold together at a lower price than if purchased separately. This approach can increase sales volume, move inventory faster, and provide added value to customers. Bundling is commonly used in promotions and special offers.