This presentation is all about educating everyone about retail terms

1. RETAIL
TERMINOLOGY

2. Average Number Of Pieces Per Bill
• It indicates the number of pieces a customer is buying from a
store.
• The more the number of pieces sold the more the sale.
• Hence it becomes very important for a sales staff to display
more impulse products, and sell more add-ons to a product.
• It also indicates the more time spent by a customer inside a
store.
Average number of pieces per bill = Total no. of pieces sold
. Number of bills raised

3. Average Selling Price
• It determines the total net sale value of the
store compared to the total quantity of
products sold by the store.
Average Selling Price= Total Values Of Goods Sold
Total Quantity Sold

4. Average Stock Price
• Turning stock around efficiently yields better
profit.
• This can be found for any category or an SKU any
time by checking the percentage sold from the
stock of a specified category or an SKU.
• Calculation- Total Value Of Goods In Stock * 100
Total Quantity In Stock

5. Basket Size
• The number of merchandise moving in one
single bill.
• Increase in number of basket size highlights
the efficiency of the sales person
• Example:- If you have bought 2 shirts and one
trouser from a store then the basket size is 3.

6. Benchmarking
• What are the areas of improvement that can take our store
performance to the next level.
• How do you compare your performance to the world class
performance.
• Where your company’s performance lacks in comparison.
• Decide what sets people,process,technology should be used to
remove those gaps.
• Finally , apply all the learnings from benchmarking to improve
store’s performance.
The process of setting standards of performance based on the
achievements of high performing competitors is called
BENCHMARKING.
Process Of Benchmarking

7. Boutique Store
• Very small stores with highest grade of
infrastructure.
• Provides highly customized & personalized
services.
• Do not carry a large inventory for their
merchandise.
• Located at expensive location targeted at upper
premium customers.
• Example:- ladies boutique designing suits, saris
or jewellery.

8. B T L
• Also known as below the line.
• All advertising activity that is done at an
outlet/retail level as well as direct marketing.
• BTL activity is designed to bring in awareness
to a specific target market.
• It includes store promotions, road shows,
flyers, placing stalls in malls, participating in
exhibitions, brochures, leaf lets ,catalogues
etc.

9. Brand
• Unique design, sign, symbol, words, or
a combination of these, employed in creating
an image that identifies a product and
differentiates it from its competitors.
• Over time, this image becomes associated with a
level of credibility, quality, and satisfaction in
the consumer's mind (Like Red Chief).
• Legal name for a brand is trademark and, when it
identifies or represents a firm, it is called a brand
name.

10. Brand Awareness
• Brand awareness is the extent to which
a brand is recognized by potential customers,
and is correctly associated with a
particular product.
• Brand recognition refers to the ability of the
consumers to correctly differentiate the brand
they previously have been exposed to.

11. Cash & Carry Stores
• A whole sale format based on cash payments.
• Carry a large variety & assortment
• Does not sell single SKUs.
• Targeted at small retailers ,hotels ,restaurants
& other institutional buyers.
• Provides services of financing to facilitate
small traders.
• Open seven days a week for longer hours

12. Cash Wrap
• This is the main checkout area of our store.
• In other words, this is where customers head
to when they’re ready to pay for their items.
• It’s the area where merchandise department
set up their POS system and ring up sales.
• Most cash wrap even have shelves containing
merchandise that customers can pick up on
their way out

13. Catalog Retailer
• Do not have physical brick & mortar stores.
• Sends catalog, directories, brochures to target
customers & accept the orders.
• Products are delivered to customer door steps
& the payments is accepted through credit
cards.
• Example:-Office 1 super store that sells office
stationary.

14. Category Killer
• Specialty retailer who chooses to sell a single
category of products.
• Offer the largest assortment and sell at
discounted prices.
• It also exploits other large format retailers, by
becoming a category super specialist.
• Examples:- planet fashion selling sunglasses,
the loft selling footwear.

15. Chain Stores
• Chain stores or retail chain are retail outlets
that share a brand and central management,
and usually have standardized business
methods and practices.
• They usually have one single owner who
manages all the processes.
• Example:- Red Chief

16. Consumer
• The consumer is the one who pays to
consume goods and services produced.
• As such, consumers play a vital role in the
profit maximization of any brand.
Without consumer demand, producers would
lack one of the key motivations to produce: to
sell to consumers.
• The consumer also forms part of the chain of
distribution.

17. Conversion Ratio
• Retail conversion measures the proportion of
visitors to a retail outlet who make a purchase. If
300 people visit your store in a day, but only 75 buy
something, the conversion rate is 25 percent.
• CONVERSION RATIO= TOTAL NO. OF BUYERS * 100
TOTAL NO. OF VISITOR

18. Customer
• A customer is one who does not in turn re-
sell the things bought but either passes them
to the consumer or actually is the consumer.
• A customer may or may not also be
a consumer, but the two notions are distinct,
even though the terms are commonly
confused.
• A customer purchases goods; a
consumer uses them

19. Cross Merchandising
• This refers to the practice of displaying or putting
together products from different categories to
drive extra sales in our store to maximize profit.
• Example:-Customer at our store browsing the
apparel section & their they see a collection of
jeans placed along with shirt. This is CROSS
MERCHANDISING in action. Merchants know that
people often take shirt along with jeans, so they
strategically placed the two items together.

20. Cross Selling
• Cross selling is the art of suggesting additional,
complementary items to someone who has
already decided what to purchase but remember
the suggested item shouldn’t exceed more than a
certain percentage of the cost of the original
item.
• Example:-When a customer decided to purchase
a shirt from your store, at the same moment you
can suggest the related articles like trouser or
jeans to increase the sale of your store

21. Degrowth
• It is defined as demotion in the sale of store
compared to last year sale.
• This is one situation in which none of our
store staff want to face it.
• It basically occurs due to lack of trained staff
in the store.

22. Departmental Store
• Large retail store,often multistoried ranging to several
thousand square feet.
• Selling a wide variety with deep collection of goods &
services.
• Different merchandise categories are organized in
different departments.
• Each department has separate billing counter, however
, billing can be done at any counter of other
department too.
• They usually have high staff ratio for better customer
service.
• Example:- Marks & Spencers, Shoppers Stop.

23. Discount Customer
• They shop our stores frequently, but make
their buying decisions based on the size of our
markdowns or discounts available in the store.
• This category helps ensure your inventory is
turning over and, as a result, it is a key
contributor to cash flow.
• We also provide discounts in EOSS form in our
store, two times in a year (July & Jan).

24. Discount Store / Off Price Retailers
• Merchandise is sold at prices lower than MRP
throughout the year.
• Factory outlets sell products which are rejected by the
factory due to minor defects or unsuccessful designs.
• Single price shops or value stores sell combinations of
different products at specific price points by combining
low & high cost products together to enhance the
perceived value to the customer.
• About to expire , stores sell the merchandise at a lower
price for immediate consumption.
• Example:- Red Chief Factory Outlet

25. Dynamic Clustering
• Dynamic clustering comes handy when you have a
fragmented customer base (i.e. your customers are scattered
across different locations or fall under various socio-
economic categories) then you know that growing your
business as whole can be quite a challenge.
• Dynamic Clustering is all about identifying patterns or style
in various segments to bring about the best collection for
each our store.
• Example:- If any article is fast moving in your store then you
can request the supply chain department for that particular
article as you analyze the need of your customer in your
store more than any one else.

26. EBO
• Also known as Single Brand outlet.
• It stocks only a single brand merchandise.
• Often owned & franchised by manufacturer to
showcase the product line of their brand.
• Carry a deep assortment & variety of products
offered under the brand.
• They usually have limited options to the
customer, based on the target audience of the
brand.
• Example:- Red Chief

27. EOSS
• It Is Referred As End Of Season Sale.
• It Is Actually The Discount Period Avail By The
Company To Its Employees When The Sale Of
The Store Is Not In Peak For Compensating
Slow Moving Articles.
• It Actually Comes In The Month Of July &
January .

28. E-Tailing
• E-tailing is the selling of retail products on the
Internet.
• Short term for "electronic retailing”.
• Example :- The Red Chief products which we
are selling online from various online
companies such as Amazon, flipkart, snap deal
etc. , come under the concept of e-tailing.

29. Footfall
• It is the number of customers who enter the store
during trading hours irrelevant of whether they
are purchasing a product or not.
• They can either be a new customer, or an existing
customer.
• Customers get attracted towards a store due to
its location, its ambience, the products that they
sell, and also due to attractive prices that they
offer.
• Fall in customer entry is seen if any of these
factors are not present.

30. Green Retailing
• This refers to the environmentally-friendly practices
that retailers get into.
• These can include switching a product’s packaging to a
recyclable one or giving customers reusable shopping
bags instead of plastic.
• Other practices, such adding solar panels or replacing
store lighting with energy-saving alternatives can also
be considered as green retailing.
• We also follow the same retailing as our packaging
bags are made of cloth rather than plastic

31. Hourly Customer Traffic
• It is used to track total customer traffic per
hour ,day, week or season or the number of
customer visited during that particular time.
• It is valid for any number of stores.
• Calculation- Total Number Of Customers * 100
Number Of Hours

32. Hyper Market
• Invented by French company Carrefour, the
fourth largest retailer in the world.
• Normally varies 80,000 & 2,00,000 sq ft in size.
• Located in suburban location or city outskirts.
• Usually offer facilities like restaurant,
entertainment etc.
• Offer one stop shopping experiences at cheapest
price.
• Example- Big Bazaar,Walmart, etc.

33. Impulse Customer
• An impulse purchase or impulse buying is an
unplanned decision to buy a product or service,
made just before a purchase.
• One who tends to make such purchases is
referred to as an impulse purchaser or impulse
buyer.
• This type of customer completely rely on sales
man feedback as they are the ones who get
influenced through upselling & counter selling.

34. Loyal Customer
• They represent no more than 20 percent of our
customer base, but make up more than 50 percent of
our sales.
• These people are the ones who can and should
influence our buying and merchandising decisions.
• Nothing will make a Loyal Customer feel better than
soliciting their input and showing them how much you
value it.
• In my mind, you can never do enough for them.
• Many times, the more you do for them, the more they
will recommend you to others.

35. Merchandising
• Merchandising is the term used to signify
articles for sale; it derives from the word
merchant, the actual seller or retailer.
• Fashion merchandising includes all the
planning and activities necessary to supply the
fashion wants and needs of retail customers.
• In the past fashion merchandising was usually
associated only with women’s apparels and
accessories.

36. Merchandise Greeting
• This type of greeting comes into existence
when we were unable to greet the customer
at the time when he entered our showroom
due to any reason whatsoever.
• So just to engage ourselves with the customer
in the conversation, we focus his/her attention
towards the particular product for further
interaction.

37. Merchandise Hierarchy
Division
Department
Category
Subcategory
Brand
Style
options
Apparel
Men’s
Shirt,Trouser,Denim,T-shirt
Full sleeve shirts
Red Chief
Button down collar, polo style, normal collar
Size(38,40,42,44),price(650,750,1000 etc),Design(solid stripes, prints)

38. MBO
• Also known as multi brand outlet.
• Carry a two or more brands in the same retail
outlet.
• Do not favor or highlight a particular brand over
others.
• Carry a limited assortment of products from each
brand.
• They usually have different sections to showcase
different brands or a mix of branded or
unbranded merchandise

39. Need Based Customer
• People in this category are driven by a specific
need.
• When they enter the store, they will look to see if
they can have that need filled quickly.
• If not, they will leave right away.
• It is important to remember that Need-Based
Customers can easily be lost to Internet sales or a
different retailer.
• To overcome this threat, positive personal
interaction is required, usually from one of your
top salespeople.

40. Organized Retail
• Organized retail is a methodological approach to
managing a retail business, unlike Mom & Pop
store.
• These store usually have more than one identical
store.
• These store measure different aspect like footfall,
average sale per customer, category sale etc, to
improve their business performance.
• These apply modern tools to run customer loyalty
programs.
• Example:- Red Chief

41. Personalized Greeting
• We use this type of greeting for those customers who
frequently visit our store or for loyal customer.
• In this greeting we engage ourselves with the customer
by calling them by their name so they get more familiar
touch within store.
PROCESS OF PERSONAL GREETING

42. Point-Of-Sales
• Selling of additional products or services to a
customer at the time of purchase.
• Example :- When a customer purchase certain
item (footwear , garments) from our store, the
sales person should make an effort to sale
some accessories (belts, socks, wallet,
handkerchief etc) related to that article to
enhance their sale.

43. Pre Sales Presentation
KNOW YOUR
COMPANY
• You must know the history of the company.
• You must be aware of company’s customer policies.
• Learn about the hierarchy & people who implement final decision.
KNOW YOUR
PRODUCT
• You must be aware of the product we manufacture.
• Availability , support & turnaround time of your product.
• What differentiates your product from your competitors.
KNOW YOUR
CUSTOMER
• You must learn about target customer profile.
• Learn how your customer use the product.
• You must know that your how your customer likes to be treated.

44. Process In Personal Selling
GREETING
(welcome the customer)
PROBING
(putting a right question to the customer)
PRESENT THE MERCHANDISE
(as per the requirement of customer need)
TRIAL CLOSE AND ADD ONS
(try to increase the point of sale)
CLOSING THE SALE
(thanks the customer & invite them again)

45. Product Life Cycle
• This term is used to describe the series of stages
that each commercial product goes through
when it hits the market.
• These stages include introduction, growth in
sales revenue, maturity, and decline.
• You must pay attention to the life cycle of each of
your products.
• Take note of their performance at each stage, and
gather info that you can use to improve future
products or offerings.

46. Relationship Retailing
• This is a strategy that businesses implement to
build loyalty and develop long-term
relationships with customers.
• Relationship Retailing can come in the form of
loyalty programs, personalized experiences, or
superb customer service.
• This type of retailing is very essential in
increasing the store traffic & in turn increases
profit maximization.

47. Retail
• Retail can be defined as selling of goods &
services to prospective buyer to increase the
profit maximization.
• Or in other words we can say as “ फु टकर
बिक्री ”, where bulk buying is never seen.
• We all are the part of retail industry.
• Example :- Red Chief, Woodland, Zara etc.

48. Return To Net Sales
• It gives an indication of customer satisfaction
by showing the value of returned goods &
allowances as a percentage of net sales.
• An increase in this figure gives an early
warning to the company.
• Calculation = Total return & allowances *100
net sales

49. Sales Per Transaction
• It gives the rupee value of the average sale,
net of returns and allowances.
• It is used to study sales trends over time, or in
combination with other measures.
• Calculation- Net Sales * 100
Number of transaction

50. Segmentation
• Segmentation is the process of dividing the
target market into smaller groups who share
similar characteristics & need.
• It also helps the retailer in understanding
behavior & unique need of each customer
groups.
• It helps the staff to develop specialized market
offerings for different customer segments.

51. Segmentation Types
• Format- The way a retail stores organizes its
layout, operations & functioning determines
its format.
• Category-The products & services that are
sold by the retailer determines it’s category.
• Type Of Ownership-The basic way in which the
identity of the store is established determines
its type of ownership.

52. Shrinkage
• This pertains to the difference between the
amount of stock that you have on paper and
the actual stock you have available.
• In other words, it’s a reduction in inventory or
merchandise that isn’t caused by sales.
• The common causes of shrinkage include
employee theft, shoplifting, administrative
errors, and supplier fault.

53. Social Greeting
• This type of greeting comes into existence when
customer enters our store & then we greet them.
We greet him in the following way:-
1. Namaste, Good Morning/Afternoon/Evening.
2. Use a warm and friendly voice – be careful of the
tone of your voice.

54. Specialty Stores
• Concentrate on one or two lines of
complimentary merchandise.
• Target specific types of customers & success
depends on fulfilling their needs.
• Operate from smaller retail stores.
• Create a deep assortment & success depends
on fulfilling their needs.
• Example:-GAP,FCUK.

55. Super Market
• Large store running self service operation.
• Usually sell 70% food stuff, groceries & everyday
items.
• Vary from 2,000 to 20,000 sq. ft in size.
• Selling at low price doing high volume using EDLP
(every day low pricing).
• Regularly run different promotional campaigns to
attract higher volumes.
• Examples- Food bazaar, Reliance fresh

56. Ticket Size/Cash Memo
• Ticket size is nothing but the average number of money
each buyer has spent inside the store in one visit.
• More variety of merchandise, right choice of
merchandise, and availability of sizes will increase the
ticket size of the store.
• Selling higher valued products by the sales staff will
also help increase the ticket size.
Ticket size = Total sales of the store
Total No. of bills

57. Transaction Per Hour
• This technique helps our retail staff to track the
number of transaction, they are carrying out per
hour.
• Hourly variation in sales activity could be important
for setting up key stores hours for sales & prepared
the staff to perform during that period.
• Calculation- Number Of Transaction * 100
Number Of Hours

58. Up Selling
• Up-selling differs somewhat from cross-selling in
that the salesperson is not so much concerned
with selling an additional product to generate
additional commissions, but rather with selling a
higher-end version of the product the customer
originally came to buy.
• Promoting of Sale in Same segment.
• Example: If a sales person sales a T-shirt along
with a shirt OR trouser with a jeans OR a shirt
along with a another shirt, then this type of
selling is termed as upselling.

59. Value Per Piece
• It is an indicator of the type of merchandise available in the
store.
• If the average value per piece in a store is falling it indicates
either the store is selling lower priced products only or
higher value product is not selling, or there is no stocks of
higher value products on the floor.
• Hence sales staffs need to convert higher value products
into sale and increase the overall sale of the store.
Value per piece = Total sales value
Total number of pieces sold

60. Wandering Customer
• These are just opposite of Loyal Customer.
• They are those customer who visits our store
to express the group/community.
• These types of customer counts more than
70% of the footfall in the store but the sale
generated through them is not more than 10%
of the total sale of the store.

61. Warehouse Stores
• They are similar to cash & carry but sells in
smaller bulks.
• Carry limited lines of merchandise.
• Very large stores (1-2 lakh sq. ft) on a single
floor resembling the merchandise.
• Always located away from the main city &
have transport, crane facility for loading &
unloading.

62. Who Will Buy Our Products??
• Those customers who are filling RADA criteria will
buy our product:
• R(requirement)-A person will buy a product or
services depending on the needs & want.
• A(ability)-A person buying power defines his
ability to buy a product or service.
• D(desire)-Easy credit & increased purchasing
power can give a customer the ability to buy.
• A(authority)-After all the factors the customer
must have the authority to buy.

63. Webrooming
• This is the practice of looking at products online
before buying them in actual retail stores.
• It’s the opposite of show rooming, where
customers look at products in physical stores only
to buy them online.
• Image-based websites and social networks such
as Pinterest help perpetuate webrooming.
• Users see items that they like while browsing
these sites and then go out in the real world to
test or try them on.

64. Year Over Year
• A comparison of a store’s current financial
performance with the same data for the previous
financial year performance.
• YOY Calculation = ( TYS – LYS) * 100
LYS
• WHERE , TYS= THIS YEAR SALE OR THE SALE OF
THE STORE DURING THAT PARICULAR MONTH
& LYS =LAST YEAR SALE OR THE SALE OF THE
STORE DURING THAT PARICULAR MONTH

65. Year To Date
• A term used to describe the performance of a
of any store so far in the financial year or any
defined period.
• It can be evaluated quaterly,monthly or in a
six months duration.
• Example:- As our store works on financial
year (1st april-31st March) , the sales of the
store are Rs 60 lacs in the period Apr to Sep
then the YTD sales as of Oct 1 are Rs 60 lacs.