RBSE Sec Voc Retail flashcards

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

Retail mix

The combination of merchandise, price, location, promotion, presentation, service and personnel that a retailer uses to serve its target customer and compete in its market.

Wheel of retailing

A theory holding that new retailers enter with low prices and low service, then gradually add services and raise prices, opening space for the next low-cost entrant.

GMROI

Gross margin return on inventory, calculated as gross margin divided by average inventory at cost. It shows how much gross margin each unit of inventory investment returns.

SERVQUAL reliability

The service-quality dimension reflecting the ability to deliver the promised service dependably and accurately. Customers usually weight it as the most important of the five dimensions.

Service recovery paradox

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

Customer lifetime value

The gross margin expected from a customer over the whole relationship: average purchase value times annual purchase frequency times retention years times margin percentage.

Moments of truth

Every point of contact between customer and retailer, such as entering, asking for help, paying or returning an item, each of which shapes the overall service perception.

Feature-advantage-benefit

A selling structure in which a factual product feature is linked to what it does (advantage) and then to what the customer personally gains from it (benefit).

Assumptive close

A closing technique in which the salesperson proceeds as if the purchase decision is made, for example by asking about delivery date or wrapping rather than whether to buy.

Units per transaction

Total units sold divided by the number of transactions in a period. It measures how effectively staff add items to each basket through cross-selling and up-selling.

Cross-selling

Offering a complementary product related to the item the customer has already chosen, such as a case for a phone, to meet additional needs and raise basket value.

Assortment depth

The number of variants offered within a single product line, such as sizes, colours or flavours. Depth is traded off against shelf space and inventory investment.

Planogram

A diagram showing the exact position and facing count of each product on a fixture. Compliance with it is checked by audit because layout drives visibility and sales.

ABC analysis

Ranking stock items by sales or profit so that the small number of A items generating most value gets closest attention, while C items may be delisted.

Inventory turnover

Cost of goods sold divided by average inventory at cost for the period. It indicates how many times stock is sold and replaced, and how much capital is tied up.

Reorder point

The stock level that triggers a new order: average daily demand multiplied by supplier lead time in days, plus the safety stock held against variability.

Shrinkage

The difference between recorded book stock and physical stock, caused by theft, administrative error, supplier shortfall, damage or spoilage. It is expressed as a percentage of sales.

Safety stock

Extra inventory held beyond expected demand during lead time, protecting against demand spikes and delivery delays. It rises with higher target service levels.

Decompression zone

The entrance area where shoppers slow down and orient themselves. Because attention is low there, it is usually kept open rather than loaded with impulse merchandise.

Power wall

The prominent wall a customer first sees on entering, used to display new, seasonal or high-margin merchandise because it attracts immediate attention and traffic.

Grid layout

A layout of parallel aisles and shelves, typical of supermarkets, that maximises product density and efficient shopping but offers limited browsing freedom.

Free-flow layout

An open layout with fixtures placed irregularly rather than in fixed aisles, common in fashion and specialty stores, encouraging browsing and a relaxed shopping experience.

Markup on retail

Markup expressed as a percentage of the selling price rather than cost: (selling price minus cost) divided by selling price, multiplied by one hundred.

Loss leader

A product priced below normal margin, sometimes below cost, to attract customers into the store in the expectation that they buy other profitable items.

Price elasticity

The percentage change in quantity demanded divided by the percentage change in price. Absolute values above one mean demand is elastic and a price rise reduces total revenue.

Till reconciliation

End-of-shift check comparing counted cash with expected cash, calculated as opening float plus cash sales minus refunds and paid-outs. Variances are recorded and investigated.

Void versus refund

A void cancels a transaction before it settles and leaves no sale on record; a refund reverses an already completed and settled sale, usually requiring the original receipt.

Successive discounts

Two discounts applied one after the other are multiplicative, not additive: twenty percent followed by ten percent gives a total reduction of twenty-eight percent.

Sales tax on gross

To extract tax from a tax-inclusive total, divide the gross amount by one plus the tax rate; the difference between gross and net is the tax amount.

Change-of-mind return

A return of unwanted but non-faulty goods. It is granted only under the retailer's published policy or where law provides, unlike faulty goods which carry statutory remedies.

Acceptable quality

The statutory standard that goods must be fit for ordinary purpose, durable for a reasonable period and free from defects, considering price, description and display.

Manual handling rule

When lifting, keep the load close to the body, bend the knees rather than the back, avoid twisting while loaded, and use team lifting or equipment for heavy items.

Assembly point

The designated safe location outside the building where staff and customers gather after evacuation so that a headcount can confirm everyone is accounted for.