Retail Terminology – L
L
LFL (Like-For-Like)
Like-for-Like (LFL) is a measure used in retail to compare the sales growth of existing stores over a certain period. This metric adjusts for new store openings or closures, providing a clearer picture of a retailer’s performance by focusing on stores that have been operational for at least a year.
Look Book
A Look Book is a collection of photographs compiled to showcase a designer’s new collection. It serves as a visual marketing tool to present the latest trends and styles to buyers, media, and customers, often used in the fashion industry.
Loss Leader
A Loss Leader is a product sold at a loss to attract customers into a store. The strategy aims to entice shoppers with the discounted item, hoping they will make additional purchases of higher-margin products. Common examples include low-priced milk in grocery stores or discounted electronics during holiday sales.
Loss Prevention
Loss Prevention refers to strategies and practices aimed at reducing theft, fraud, and operational errors in retail stores. Effective loss prevention not only protects a retailer’s bottom line but also ensures a safe shopping environment for customers and employees. Techniques include surveillance systems, staff training, and inventory management.
Luxury Brand
A Luxury Brand is a high-end brand known for its premium quality, exclusivity, and high price points. These brands often emphasize craftsmanship, heritage, and superior materials, catering to affluent consumers seeking status and prestige.
A Luxury Buyer is a consumer who regularly purchases high-end, premium products. These individuals prioritize quality, exclusivity, and brand reputation, often willing to pay a premium for items that reflect their social status and personal taste.
A Luxury Conglomerate is a large corporation that owns multiple luxury brands across various sectors, such as fashion, jewelry, and cosmetics. Examples include LVMH and Kering, which manage portfolios of prestigious brands like Louis Vuitton, Gucci, and Dior.
Luxury Retail refers to the sale of high-end, premium products through exclusive retail channels. These stores offer a personalized shopping experience, often located in upscale areas and designed to provide an ambiance of sophistication and exclusivity.
Lifestyle
In retail, Lifestyle refers to products and services that cater to a specific way of living or set of values. Brands focusing on lifestyle aim to create a holistic customer experience, encompassing fashion, home decor, wellness, and more, aligning with their target audience’s aspirations and preferences.
Loyalty Program
A Loyalty Program is a marketing strategy designed to encourage repeat purchases by offering rewards or incentives to loyal customers. These programs can include points systems, discounts, exclusive offers, and tiered memberships, all of which aim to increase customer retention and boost sales.
Long Tail
The Long Tail is a retail strategy focusing on selling a large number of unique niche products in small quantities rather than a few popular products in large quantities. This approach leverages the vast reach of online platforms to cater to diverse customer preferences, maximizing overall sales by tapping into less common demands.
Layaway
Layaway is a purchasing option allowing customers to reserve an item with a deposit and pay the balance over time before taking possession. This method helps consumers manage their budgets while ensuring they can secure desired products without immediate full payment.
Lease Agreement
A Lease Agreement is a contractual agreement between a landlord and a tenant outlining the terms and conditions of renting a retail space. It includes details such as rent amount, lease duration, maintenance responsibilities, and other obligations of both parties.
Limited Edition
A Limited Edition product is produced in limited quantities, often with unique features or designs, to create exclusivity and urgency among customers. This strategy can drive demand and enhance the product’s perceived value, appealing to collectors and enthusiasts.
Line Sheet
A Line Sheet is a document retailers use to communicate product information, including descriptions, prices, and ordering details, to potential buyers. It is a comprehensive guide for wholesale transactions, helping buyers make informed purchasing decisions.
Loss Ratio
Loss Ratio is a financial metric used to assess the proportion of lost sales or damaged goods compared to total sales. This ratio helps retailers understand the impact of losses on their profitability and identify areas for improvement in inventory management and loss prevention strategies.