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69 Cards in this Set
- Front
- Back
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buyer who is located at, and purchases inventory from, a centralized location such as central headquarters or a regional office
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Centralized Buyer
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The concentration of the responsibility for selecting and purchasing merchandise for a chain or group of stores in the hands of the headquarters staff rather than in the individual stores
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Centralized Buying
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Executive who is responsible for preparing statistical reports that are used to guide the buying and selling activities of the merchandising division and for ensuring that budgets are maintained
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Controller
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buyer who is located in a retail store and who purchases inventory for that store and its branches from his or her location in the store
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Decentralized Buyer
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retail executive who supervises a group of buyers and is responsible for the merchandising activities of a related group of sales departments or divisions
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Divisional Merchandise Manager (DMM)
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axiom of merchandising which states that the successful merchandiser must have the right merchandise, at the right place, at the right time, in the right quantities, and at the right price
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Five "Rights" of Merchandising
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The main store of a large retailing firm having a number of stores
traditionally, the original downtown store today, usually the company's largest stores that frequently serve as prototypes providing the model for the ideal store format |
Flagship Store
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Retail executive who is responsible for supervising a group of divisional merchandise mangers and for interpreting and executing store policies
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General Merchandise Manger (GMM)
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four-function plan for store organization that establishes merchandising as one of four divisions, along with financial control, store operation/management, and sales promotion
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Mazur Plan
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the managment of the buying and selling of merchandise, or the planning and control involved in marketing particular merchandise, at places, times, prices, and quantities that will best serve to realize a profit
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Merchandising
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the process of originating a product idea, sourcing the fabrics and trims, and negotiating for a contractor to produce the goods
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Product Development
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goods developed by a retailer to be sold exclusively in that particular company's stores and which carry the retailer's label
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Private Label
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all of the functions involved in obtaining goods and selling them to the final consumer
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Retailing
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a group of 12 items
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dozen
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sewing or trade term for small functional items and trimmings, such as buttons, snaps, zippers, hooks, shoulder pads, and seam tap, used to complete a garment
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Findings
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twelve dozen items
144 units |
gross
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a part of a whole, expressed in hundredths
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Percent or Percentage
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a single quantity regarded as a whole in a calculation
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Unit
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a method of compensation in which a salesperson is paid a percentage of his or her sales
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Commission
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the amount remaining after direct expenses are subtracted from gross margin
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Contribution or Controllable Margin
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expenses that specifically relate to the operation of a selling department and that would be eliminated if that department were eliminated
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Direct Expenses
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a worker who is employed on a year-round basis and who works a full workweek, generally 35 to 40 hours per week
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Full-time Employee
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the number of hours worked by part-time employees divided by the number of hours considered to be a full-time workweek
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Full-time Equivalent Employees
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difference between net sales and total cost of merchandise sold
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Gross Margin or Gross Profit
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total sales before customer returns and allowances have been deducted
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Gross Sales
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expenses that do no relate to specific selling departments
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Indirect Expenses
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sales after deductions have been made for customer returns and allowance
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Net Sales
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presentation of figures summarizing income, cost of merchandise sold, and expenses for a specific period, usually a month, season, or year
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Operating Statement
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gross margin less operating expenses
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Operating Profit
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the relationship between sales for a period of time and the number of hours employees have worked during that period
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Sales per Employee Hour
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the relationship between sales for a period of time and the number of full-time equivalent employees who worked during that period
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Sales per Full-time Employee Equivalent
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the relationship between sales and the number of linear feet of shelf space used by a department, merchandise category, or brand
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Sales per Linear Foot of Shelf Space
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a ratio that reflects the sales volume productivitiy of a retailer's selling space
found by dividing net sales by square feet of selling space in store |
Sales per Square Foot of Selling Space
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the relationship of dollar gross sales to the number of transactions
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Sales per Transaction
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Method of allocating space whereby the space to be allocated to a department or merchandise category is based on sales the product has achieved in the past on a square-foot basis
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Sales Productivity Method of Space Allocation
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the total floor space devoted to selling activities, including aisles, fitting rooms, and stock rooms adjacent to the selling department
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Selling Space
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the processing of one sale
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Sales Transaction
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relationship between gross wages and net sales for a salesperson, department, or store
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Selling Cost Percent
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the cost after quantity and/or trade discounts are deducted, but before cash discounts are deducted
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Billed Cost
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the difference between retail percent and markup percent
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Cost Complement
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the difference between total cost price and total retail price of all merchandise handled during a specific period
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Cumulative Dollar Retail
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the difference between net sales and total cost of merchandise sold
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Gross Margin
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the difference between the cost price and the original retail price of merchandise
does not reflect markdowns or stock shortages |
Initial Markup
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the difference between net sasles and gross cost of merchandsie sold
expressed as a percent of next sales and does not reflect cash discounts or workroom costs represents the actual markup achieved for a selling period |
Maintained Markup
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a term often used interchangeably with markup
often indicated the total amount added to the cost of the total merchandise in a department, rather than to the amount added to individual items used more often in manufacturing |
Markon
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the difference between the cost price and the retail price of merchandise
may be expressed in dollars or as a percent if as a percent, it may be based on either cost price or retail price most retailers base on retail price |
Markup
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factors that reduce the retail value of a merchandise assortment
examples: markdowns, employee discounts, special customer discounts, and stock shortages |
Retail Reductions
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price revision that increases the selling price above the original retail price
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Additional Markup
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a pricing policy retailers use that sets prices exactly at or near the same price as competitors' prices.
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At-the-Market Pricing
also, Competitive Pricing |
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charges to the vendor for portions of the money the retailer has already paid for the goods
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Chargebacks
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a reduction in the price of merchandise or services for customers based on their ability to meet particular criteria
used as an incentive encouraging customers to purchase goods or services |
Discount
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a pricing policy that sets prices somewhere between the lowest discounted sale price and the regular, nonsale price of competitors
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Everyday Low Pricing (EDLP)
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a pricing policy that sets prices about the EDLP (everyday low pricing) of competitors and uses frequent special sales for short periods to increase consumer interest
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High/Low Pricing
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third parties that purchase unsold merchandise in bulk, consolidate goods, and resell them to other off-price merchants
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Jobbers
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a pricing policy whereby a retailer offers brand-name merchandise at special, reduced prices to attract consumers with the hope that they will purchase other, regularly priced items
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Leader Pricing
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well-known brand-name products priced below cost and used in leader pricing
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Loss Leaders
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a reduction from the original or previous retail price of merchandise
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Markdown
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an upward price adjustment that is offset against former markdowns
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Markdown Cancellation
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money obtained from manufacturers to cover lost gross margin dollars which result from markdowns that occur late in the season
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Markdown Money
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A reduction in the price of an item after it has been subject to additional markup
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Markup Cancellation
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the difference between the total markdown and the markdown cancellation
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Net Markdown
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a reduction in the retail price of merchandise to clear the merchandise from inventory
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Permanent Markdown
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a pricing policy used in retail stores that wish to project a prestigious image
prices are set higher than those of competitors to reflect exclusivity, personal service, and high-quality merchandise |
Prestige Pricing
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a specific price at which merchandise is offered to the customer
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Price Line
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the practice of predetermining the retail points at which an assortment of merchandise will be offered for sale
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Price Lining
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the spread between the highest and lowest price line offered for sale
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Price Range
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a series of price lines that are relatively close together and tend to appeal to a certain segment of customers
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Price Zone
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merchandise purchased by the retailer at a lower-than-regular price
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Special Purchase
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a reduction in retail price for a specified period, usually short term, with the intent that the merchandise will ultimately be repriced
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Temporary Markdown
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