Retail Terminology – H
H
Handheld Scanner
A handheld scanner is a portable electronic device that scans physical documents and converts them into digital formats. These scanners are essential for retail, logistics, and industry inventory management, pricing, and checkouts. They consist of reading and decoding units, often integrated into one device, allowing for quick and accurate data collection.
Handheld Terminal
Handheld terminals are wireless devices with an operating system (Android/Windows), memory, screen, keyboard, and barcode scanning capabilities. Commonly used in container terminals and retail, they facilitate data transfer and extended operational periods due to their built-in batteries. These devices are crucial for real-time data collection and management.
Hardlines
In retail, “hardlines” refer to durable, non-consumable goods characterized by their longer lifespans and tangible nature. Examples include appliances, automotive parts, sporting goods, electronics, and toys. These items are typically hard to the touch and are distinguished from soft goods like clothing and linens.
Hanger Appeal
Hanger appeal refers to the attractiveness of a garment when displayed on a hanger, making it appealing enough for immediate purchase without trying it on. This concept is crucial in retail as it can significantly impact sales by enticing customers through visual appeal alone.
Headstock
The headstock is a component found at the end of stringed musical instruments, such as guitars and violins. It houses the tuning pegs or mechanisms that hold the strings in place. In lathes, the headstock holds and rotates the workpiece, containing the main spindle, gears, and often the motor that drives the spindle.
High Street
High Street is a term commonly used in the UK and Commonwealth countries to denote the primary business street in a town or city where the most important shops and businesses are located. It is the focal point for retail and commercial activities and is often synonymous with the retail sector itself.
High-Low Merchandising Strategy
The high-low merchandising strategy involves setting product prices above the market average initially and then offering significant discounts or clearance sales later. This approach helps turn slow-moving inventory and increase store traffic by attracting customers with promotional offers.
High/Low Pricing
High/low pricing is a strategy in which products are introduced at a high price point and later sold at a lower price during promotions or clearance sales. This method helps sell slow-moving merchandise, increase store traffic, and generate additional sales on other items.
High-Ticket Item
High-ticket items are premium, high-cost products or services, such as luxury cars, jewelry, or expensive technological equipment. These items usually require a consultative sales approach due to their high price points, which generally start around $1,000. Selling high-ticket items can significantly boost revenue and profit margins, although it often involves longer sales cycles and more objections.
Hidden Price Increase
A hidden price increase refers to raising prices in a way that is not immediately obvious to consumers. This can include adding hidden charges or fees, such as bank overdraft fees, surcharges from telecommunication providers, processing fees, and installation fees.
Holiday Markdowns
Holiday markdowns are price reductions implemented for seasonal items if they do not sell out by a predetermined time. These markdowns help clear out inventory to make room for new merchandise and are often used to boost sales during holiday seasons.
Holding Power
In retail, holding power signifies a product’s or brand’s capacity to consistently attract and retain consumer interest, ensuring longevity and relevance in the market. It gauges a product’s ability to maintain sales and a brand’s enduring appeal and loyalty.
Holdout Test
A holdout test is a type of A/B testing where a portion of the audience is purposely excluded from receiving a marketing message. This control group helps determine the campaign’s effectiveness by comparing their behavior to those who received the message.
Host Merchant
A host merchant is a payment processing company that provides merchants credit card and electronic payment processing services. It offers various services, including payment processing, POS systems, and business cash advances.
Hotspot Analysis
Hotspot analysis is a spatial analysis technique used to identify statistically significant clusters of high values (hot spots) and low values (cold spots) within a dataset. This method is often used in mapping and geographic information systems (GIS) to analyze spatial phenomena.
Hybrid Retailing
Hybrid retailing combines traditional physical retailing with eCommerce, offering consumers a seamless shopping experience across multiple channels. This model allows customers to shop online and pick up in-store, or vice versa, providing greater convenience and flexibility.
Hybrid Store
A hybrid store is a retail concept that merges online and offline shopping experiences. It serves as a product showroom, distribution hub, customer service center, and entertainment venue, aiming to provide a comprehensive and engaging shopping experience.
Home Delivery
Home delivery is a service where purchased goods are delivered directly to the customer’s home. This option has become increasingly popular, especially during the pandemic, as it offers convenience for customers who prefer not to visit physical stores.
Horizontal Integration
Horizontal integration involves a business’s acquisition, merger, or expansion to increase its market share within its existing industry. This strategy helps companies grow by consolidating competitors and expanding their reach in the market.
Hurdle Rate
The hurdle rate is the minimum rate of return on an investment that a manager or investor expects to achieve. It is used to evaluate the profitability of potential investments and ensure that they meet the required threshold for financial viability.