4 P's 5 by 5 rule ABC (Activity based costing)
A framework used to describe various merchandising attributes: product, price, promotion, and placement. An item should convey its value proposition within five seconds from at least five feet away (derived from Costco). An accounting method that measures business profits and costs by taking intoaccount both overhead and the cost of wasteful or inefficient practices. An aisle in the store where promotional items are displayed. The sales area of the store that customers see immediately upon entering the vestibule. The total annual dollar volume in a given geography expressed as a percentage (or share) of the total market for that commodity. Additional merchandise that could be added-on to asale and purchased by the customer. Categories and/or departments located next to each other within a store. Signage at the end of the aisle used to designate the items sold in that aisle. The repayment of a loan in installments. See also, depreciation and D&A. Secondary businesses that a retailer operates within the primary retail operation (e.g., photo processing, optical, food court, travel,gas stations, tire, lube). Item(s) or resource(s) used to facilitate or add value to a retailer's operation. Words describing the characteristics of a product or service that combine functional performance with an emotional statement (e.g., luxury, organic, design/trend, therapeutic, personalized, connected, portable, escape). See also, bridge words. In-person or on-line bidding for saleable itemsand promotions. See also, CLR.
Action aisle Action alley ACV (All commodity volume) Add-on Adjacencies Aisle signage Amortization Ancillary businesses
Auction Average ticket Back order
The average dollar amount per trip of what is in a customer’s basket of goods.
An item or order that is presently not in stock but is being reordered and will be available at anothertime.
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MVI Retail Standards &Terms
Back room/Receiving Back tag Balance sheet The area of the store where freight is received andprocessed. A printed card used to hang from a peg hook showing that a product is out of stock, the number of facings, the SKU, and the description. A financial statement that summarizes a retailer’s assets, liabilities, and equity at a fixed point in time. Assets = liabilities + equity. Baler Banner A large cardboard compactor found in the back room. The name under which a retailer, or a division of aretailer, operates; the name that appears on the exterior of stores (e.g., SAM’S Club is a banner of Wal-Mart). A group of lines printed on a piece of merchandise or on a label attached to the merchandise, also known as a UPC code. Reads bar codes. Bar code scanners are generally classified as wands, hand-helds, etc. The bottom flat part of each gondola section, sometimes also referred to asShelf 1. A financial measure that represents one hundredth of one percent. One basis point = 0.01% or 0.0001 in decimal form. (Example: Costco's gross margin increased 1 basis point from 10.52% to 10.53%.) An MVI classification for retailers that do not target a particular type of shopper or consumer or a particular type of shopping trip. These retailers try to be "all things to all people" and theirlack of focus tends to inhibit their growth. A type of merchandising that denotes a rapid roll-out of a product or planogram within a geographic area. A blitz is usually coordinated with an ad date or a promotional event. Words describing the attributes of a product or service that combine functional performance with an emotional statement (e.g. luxury, organic, design/trend, therapeutic,...