Retail Terminology – R
R
Ready-To-Wear
Ready-to-wear, often abbreviated as RTW, refers to clothing that is manufactured in standard sizes and sold in finished condition. Unlike bespoke or made-to-measure garments, ready-to-wear items are produced in bulk and available for immediate purchase.
Replenishment
Replenishment is the process of restocking products to maintain inventory levels and meet ongoing customer demand. Effective replenishment strategies ensure that popular items remain available, reducing the risk of stockouts and lost sales.
Reporting Period
A reporting period is the specific time frame for which financial and operational performance is measured and reported. Common reporting periods include monthly, quarterly, and annually, allowing businesses to analyze trends and make informed decisions.
Retail
Retail refers to the sale of goods or services directly to consumers for personal use. It includes a variety of formats such as brick-and-mortar stores, online shops, and pop-up locations. The retail industry encompasses a wide range of products, from clothing to electronics.
Retail Arbitrage
Retail arbitrage involves purchasing products at a low price from one retailer to resell them at a higher price through another channel, such as an online marketplace. This business model takes advantage of price discrepancies to generate profit.
Retail Business
A retail business is an enterprise primarily engaged in selling goods or services to end consumers. Retail businesses can range from small, independent shops to large chains and eCommerce platforms, focusing on delivering value and convenience to customers.
Retail Buying
Retail buying is the process of selecting and purchasing products to be sold in retail stores. Buyers analyze market trends, customer preferences, and sales data to choose products that will attract customers and drive sales.
Retailer
A retailer is a business entity that sells goods or services directly to the end consumer. Retailers can operate in various formats including physical stores, online websites, and catalogues, serving as the final point of sale in the supply chain.
Retail Management
Retail management involves overseeing the daily operations of retail businesses. It includes tasks such as staff management, inventory control, sales strategy, and customer service to ensure the store runs efficiently and profitably.
Retail math encompasses calculations used by retailers to manage inventory, pricing, sales, and profits. Key metrics include markup, margin, turnover rate, and sales per square foot, all crucial for making informed business decisions.
Retail media networks
Retail media networks are advertising platforms operated by retail companies, enabling brands to target customers via the retailer’s own channels, such as websites or in-store displays. These networks offer a direct way to reach active shoppers.
Retail Operations
Retail operations encompass all activities involved in running a retail business, including inventory management, staffing, store layout, and customer service. Efficient operations are vital for ensuring a smooth shopping experience and maximizing sales.
Retail Price
The retail price is the final selling price of a product to the consumer, typically marked up from wholesale cost to cover operating expenses and generate profit. Pricing strategies can vary based on competition, costs, and market demand.
Retail Sales
Retail sales refer to the revenue generated from selling goods or services to consumers. This metric is key in assessing a store’s performance and popularity, often influenced by factors like location, product mix, and marketing efforts.
Retail Sales Associate
A retail sales associate is an employee who interacts with customers, assists with product selection, and completes sales transactions. They play a crucial role in providing excellent customer service and driving sales within the store.
Retail Store
A retail store is a physical location where goods and services are sold directly to consumers. Stores can range from small boutiques to large department stores, offering a variety of products in a face-to-face shopping environment.
Retail shrinkage is the loss of inventory attributed to theft, fraud, damage, or administrative errors. Shrinkage reduces profitability and is typically addressed through security measures, employee training, and inventory management systems.
Retail Supply Chain
The retail supply chain encompasses all the steps involved in getting products from manufacturers to consumers. This includes production, transportation, warehousing, distribution, and final sale at the retail level.
Retail Therapy
Retail therapy refers to the act of shopping to improve one’s mood or reduce stress. While it can provide temporary emotional relief, it’s also associated with impulsive purchasing and spending beyond one’s means.
Return Fraud
Return fraud occurs when individuals exploit a retailer’s return policy to gain refunds, exchanges, or store credits deceitfully. Examples include returning stolen items, using counterfeit receipts, or “wardrobing” (wearing items before returning them).
Reverse Logistics
Reverse logistics is the process of handling returns and exchanges, including refurbishing, recycling, or disposing of returned products. Effective reverse logistics are essential for maintaining customer satisfaction and managing inventory efficiently.