Retail Terminology – I
I
An independent retailer is a business owned and operated by an individual or a small group, separate from large franchise chains and corporate structures. These retailers have autonomy in their operations and can cater uniquely to their local communities.
Inbound Logistics
Inbound logistics involves the processes related to receiving and storing incoming goods from suppliers to the warehouse. This includes transportation, storage, and handling of raw materials and inventory, ensuring timely and efficient flow into the business.
Incentive Program
An incentive program is a strategic initiative designed to motivate employees, customers, or partners to achieve predefined goals. Common incentives include bonuses, discounts, loyalty points, and other rewards to drive performance and engagement.
Intake Margin
The intake margin reflects the difference between the cost price and the initial selling price of merchandise. It is a key profitability metric that helps retailers manage pricing strategies and assess potential profit margins from stock acquisition.
Incidental Expenses
Incidental expenses refer to minor and miscellaneous out-of-pocket costs that arise during business operations. These can include things like travel-related costs (tips, refreshments) and office supplies not covered under major expense categories.
Initial Markup
Initial markup is the percentage difference between the cost of a product and its initial retail price before any discounts. This figure is critical for determining pricing strategies and projected profitability on goods sold.
In-Season Merchandise
In-season merchandise refers to products that are currently in demand due to seasonal factors or trends. Retailers focus on stocking and promoting these items to take advantage of peak buying periods, maximizing sales potential.
In-Stock Position
The in-stock position indicates the availability of products in a retailer’s inventory at any given time. Maintaining a strong in-stock position ensures that high-demand items are readily available for purchase, minimizing lost sales opportunities.
In-Store Experience
In-store experience encompasses all aspects of a customer’s interaction within a retail store. This includes store layout, ambiance, customer service, and engaging displays, all geared towards enhancing customer satisfaction and encouraging purchases.
In-Store Pickup
In-store pickup, also known as click-and-collect, allows customers to order products online and retrieve them from a physical store location. This service merges the convenience of online shopping with the immediacy of in-store purchase.
In-Store Promotion
In-store promotions are marketing tactics executed within a retail environment to boost sales and enhance brand visibility. Examples include discounts, special displays, samples, and events that attract customer interest and drive foot traffic.
Impulse Buying
Impulse buying is an unplanned or spontaneous purchase made by consumers when they see a product that triggers a sudden desire to buy. Retailers often capitalize on this behavior by placing attractive or essential items near checkout areas.
Inventory Management
Inventory management involves supervising stock levels, orders, sales, and deliveries to ensure an adequate supply of products without overstocking or understocking. Effective inventory management helps optimize storage costs and improve profitability.
Inventory Turnover
Inventory turnover is a ratio that measures how many times a company’s inventory is sold and replaced over a certain period. Higher inventory turnover indicates efficient selling and replenishing practices, suggesting healthy business operations.
Inventory Audit
An inventory audit is the process of verifying the accuracy and condition of a company’s inventory records. Regular audits help identify discrepancies, manage shrinkage, and ensure proper accounting of stock levels.
Invoice
An invoice is a commercial document issued by a seller to a buyer detailing the goods or services provided, their quantities, and agreed prices. It serves as a request for payment and a vital record for both parties’ financial transactions.
Itemized Receipt
An itemized receipt lists each item purchased, including detailed descriptions, quantities, prices, and taxes applied. It provides clear documentation and transparency for customers to verify and track their purchases.