Assam Higher Secondary Skill Subject Retail Trade flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Time utility

Value created by making a product available when the customer wants it, such as holding festival stock in advance or keeping winter wear ready before the cold season begins.

Breaking bulk

A retailer's function of buying in large quantities from manufacturers or wholesalers and selling smaller, affordable quantities to individual consumers.

Organised retail

Retail activity carried out by a registered business with salaried employees, formal accounting records, and compliance with tax and licensing laws, unlike family-run unregistered shops.

Retail mix

The combination of product, price, place, promotion, people, and presentation decisions that a retailer uses to serve its chosen target customer segment.

Customer lifetime value

The total profit a customer is expected to generate over the whole relationship, estimated as average purchase value times purchase frequency times retention years.

Service recovery paradox

The finding that a customer whose complaint is resolved quickly and fairly may become more loyal than a customer who never experienced a problem.

Moments of truth

Every touchpoint where a shopper forms a judgement about the store, including entry, shelf browsing, trial, billing queue, and returns counter.

First-contact resolution

The percentage of customer issues resolved at the first interaction without transfer or callback, used as a key measure of customer service efficiency.

Grid layout

A store layout of parallel aisles and straight shelving that maximises shelf space and speeds planned purchases, typical of supermarkets and pharmacies.

Decompression zone

The first one to two metres inside a store entrance where shoppers slow down and orient themselves; it should stay open rather than crowded with fixtures.

Planogram

A diagram that specifies the exact position, number of facings, and shelf space allotted to each product on a fixture, used to keep displays consistent.

Space productivity

Sales generated per square metre of selling area or per running metre of shelf, used to decide which category deserves prime store location.

Open-to-buy

The amount a buyer may still commit in a period, calculated as planned purchases at retail minus stock on hand and stock already on order.

Stock-to-sales ratio

Average inventory at retail divided by sales for the period; a ratio of two means the store holds about two periods of sales as stock.

Sell-through percentage

Units sold divided by units received, multiplied by one hundred; low sell-through before season end signals the need for markdown or transfer.

Weeks of supply

Stock on hand divided by average weekly sales, compared against supplier lead time in weeks to decide when to place the next order.

Landed cost

The true cost of merchandise after adding freight, insurance, non-creditable duties, and handling to the invoice price less trade discount; it drives margin calculation.

Five rights of buying

The buying principle of obtaining the right merchandise, in the right quantity, at the right place, at the right time, and at the right price.

Private label

A product manufactured for and sold under the retailer's own brand, usually giving higher margin and exclusivity but requiring the retailer's own quality control.

Reorder level

The stock position at which a fresh purchase order is raised, calculated as average daily sales times lead time in days plus safety stock.

ABC analysis

A stock classification where A items are few but hold most of the value and get tight control, while C items are many, cheap, and loosely controlled.

Cycle counting

Counting a rotating sample of stock items on a scheduled basis instead of closing the store for a full physical inventory, with high-value items counted most often.

Goods received note

A document raised when stock arrives, recording quantity and condition after matching the delivery against the purchase order and the supplier invoice.

Cross-merchandising

Placing complementary products together, such as batteries beside toys, so shoppers notice and buy related items without needing extra shelf space.

Colour blocking

A display technique that arranges merchandise in colour families or gradients to create visual impact and slow shoppers down along the fixture.

Price-point merchandising

Grouping products by round price bands such as 99, 199, and 299 rupees so customers compare within a band rather than across the full range.

Tax invoice essentials

A GST invoice must show supplier name, GSTIN, invoice number and date, HSN code, quantity, taxable value, and the CGST-SGST or IGST split.

POS cash reconciliation

Matching the day's POS sales summary against physical cash, card and UPI settlements, and refunds, then investigating any difference the same day.

Average transaction value

Total sales divided by the number of transactions in a period, raised by upselling to a better model or cross-selling complementary items.

Cross-sell versus upsell

Cross-selling offers a complementary product to the chosen item, while upselling offers a higher-value or larger version of the item already chosen.

Gross margin percentage

Gross profit divided by net sales, multiplied by one hundred, where gross profit equals net sales minus the cost of goods sold.

Break-even sales

The sales value at which total contribution equals fixed costs, calculated as fixed costs divided by the contribution margin ratio.