Retail Terminology – G
G
Grocery Store
A grocery store, commonly called a supermarket in the United States, is a retail establishment that sells food and household supplies. These stores provide a wide range of products, including fresh produce, dairy, meat, packaged foods, and various household items, allowing customers to purchase all their daily necessities in one place.
Gross Sales
Gross sales represent the total value of all sales transactions made by a business over a specific period without accounting for any deductions such as returns, allowances, or discounts. This metric is crucial for assessing a company’s ability to generate income and is often used in the retail industry to gauge overall sales performance.
Gross Profit
Gross profit is calculated by subtracting the cost of goods sold (COGS) from total revenue. It indicates a business’s financial health by showing how much money remains after covering the direct costs associated with producing goods. The formula for gross profit is Gross Profit = Revenue—COGS.
Gross Merchandise Value (GMV)
Gross Merchandise Value measures the total value of goods sold through an e-commerce platform or marketplace over a specified period. GMV is calculated before deducting any fees, expenses, or returns, making it a useful metric for assessing an online business’s growth and sales volume.
Gift Card
Gift cards are prepaid cards issued by retailers that can be used as an alternative to cash for purchases. They provide immediate income for the retailer at the time of sale and encourage customer loyalty by driving traffic to the store. Gift cards can be physical or digital and are often used to boost sales and reduce fraud.
Gondola
In retail, a gondola is a freestanding fixture used to display merchandise. Typically consisting of a flat base and a vertical component with shelves or hooks, gondolas maximize retail space and enhance product visibility. They are commonly found in supermarkets and other retail environments to create aisles and organize products efficiently.
Goodwill
Goodwill is an intangible asset that arises when one company acquires another for a price higher than the fair market value of its net identifiable assets. It reflects the value of a business’s brand, customer relationships, and employee expertise. Goodwill is calculated by subtracting the fair market value of net identifiable assets from the purchase price of the acquired business.
Greenwashing
Greenwashing refers to the practice of companies misleading consumers about the environmental benefits of a product or service. This deceptive marketing tactic aims to portray a company as more environmentally friendly than it is, often to capitalize on the growing demand for sustainable products.