Retail Terminology – W
W
Warehouse Club
A warehouse club is a retail organization that operates large stores where members can purchase products in bulk at discounted prices. These clubs, such as Costco, Sam’s Club, and BJ’s Wholesale Club, charge an annual membership fee for access to their deals. They typically offer a limited selection of brand-name items, including groceries, appliances, and clothing, in large quantities.
Wholesaler
A wholesaler buys products in bulk from manufacturers and sells them to retailers or other businesses. This business model allows wholesalers to offer lower prices due to the volume of goods they handle. Wholesalers may also act as distributors, providing cost savings to retailers who then sell the products to end consumers.
White Label
White labeling involves one company purchasing a product from another company and rebranding it as its own. The original manufacturer produces the item, but it is sold under the purchasing company’s branding and logo. This practice is common in various industries, including technology and consumer goods.
Working Capital
Working capital is a financial metric that measures a company’s liquidity and short-term financial health. It is calculated by subtracting current liabilities from current assets. In retail, working capital includes cash, short-term investments, accounts receivable, and inventory, minus accounts payable, short-term borrowings, and accrued liabilities.
Window Display
Window displays are visual merchandising tools retailers use to attract customers into their stores. These displays are designed to be eye-catching and compelling, promoting special events, deals, and overall brand awareness. Effective window displays can significantly increase foot traffic and sales.
Warranty
A warranty is a guarantee provided by a manufacturer or seller regarding the condition and reliability of a product. It outlines the terms for repairs or replacements if the product fails or malfunctions within a specified period. Warranties serve promotional and protection purposes, assuring consumers of the product’s quality.
Wastage
In retail, wastage is the loss of products due to unsold inventory, packaging materials, or other inefficiencies. Effective waste management strategies include reducing packaging waste, encouraging reusable bags, lowering food waste, and partnering with green suppliers. Managing wastage is crucial for sustainability and cost savings.
Walkthrough (store walkthrough)
A store walkthrough is an inspection process where managers or staff walk through the retail space to assess various aspects such as product placement, cleanliness, and customer service. This practice helps ensure the store meets operational standards and provides a positive shopping experience.
WIC (Walk-in customer)
A walk-in customer is an individual who enters a retail store without a prior appointment or specific intention to make a purchase. Visual merchandising, promotions, and the overall shopping environment often influence these customers.
Wire Transfer (payment method)
A wire transfer is an electronic method of transferring funds from one bank account to another. It is commonly used for large transactions and offers a secure and efficient way to send money domestically or internationally. Wire transfers are favored for their speed and reliability.