RETAIL GLOSSARY
Anchor store: A major retailer chosen for its ability to drive traffic to the mall or shopping center in which it’s located.
Automatic reordering system: Program that reorders merchandise
when in-store supplies fall below a predetermined level.
Big-box store: Large stand-alone store specializing in one
category of merchandise (e.g., Home Depot).
Category killer: National retail chain that is dominant in
its product category—usually by offering an extensive selection at low
prices--to the point of putting smaller players out of business.
Centralized buying organization: Company in which all buying
decisions for all the stores in the company are made by one central office.
Destination retailer: Retailer to which customers will make
a special trip, even if it entails going out of their way.
FIFO: First in, first out; method of stock rotation in which
the goods that were received first are sold first.
Free-standing store: Store that’s not part of a shopping
center or a mall.
Forward stock: Merchandise that is kept on the selling floor.
Gross leasable area (GLA): Total floor space available for
retail sales.
Hard goods: Nontextile products.
Impulse items: Products that are not planned purchases.
Loss leader: Item that is priced below cost to attract customers
who will then presumably purchase other, profitable products.
Market area: Geographic area from which a store draws its customers.
Planogram: Diagram, drawing, or other visual description of
a store’s layout, including placement of particular products and product
categories.
Point-of-purchase (POP) display: Advertising display placed
alongside the merchandise it is promoting or at the checkout area.
Point-of-sale (POS) system: Combination of hardware and software
that records customers’ purchases, accepts payments, and adjusts inventory
levels.
Reserve stock: Merchandise that is not kept on the selling
floor.
Soft goods: Textile products.
Traffic driver: Marketing material that isn’t a direct
response vehicle but rather serves to draw customers to a store.
Under-the-counter stock: Merchandise that is kept under the
counter or in drawers rather than on open display, usually because the items
are easily shoplifted.
