UPMSP High School Retail Trading flashcards

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

Retail definition

Sale of goods or services directly to the final consumer for personal or household use, making the retailer the last link in the distribution chain.

Department store

A large retail format offering many product lines, each managed as a separate department with its own buying and staffing, typically with high service levels.

Convenience store

A small format with long opening hours, a limited product range and higher prices, located close to customers for quick top-up purchases.

Franchise

An arrangement where a franchisee pays fees or royalties to a franchisor for the right to trade under its brand, systems and supply chain.

Benefit versus feature

A feature is a factual product attribute; a benefit is what that attribute does for the customer. Sales presentation should translate features into benefits.

Open question

A question beginning with what, how or why that invites a descriptive answer, used to uncover the customer's needs and situation.

Alternative-choice close

A closing technique offering two acceptable purchase options, such as this colour or that one, so the decision is about which, not whether.

Customer lifetime value

Average purchase value multiplied by purchase frequency per year and by average retention years, showing the total worth of a repeat customer.

Planogram

A diagram specifying the shelf position, number of facings and space allocated to each stock-keeping unit, used to standardise display across stores.

Golden zone

The shelf area roughly between waist and eye height, where high-margin and impulse products are placed because it is easiest for shoppers to see and reach.

Shrinkage

The difference between recorded book stock and physically counted stock, caused by theft, supplier short-delivery, billing error or damage.

Grid layout

A store layout of parallel aisles and shelves, typical of supermarkets, that makes navigation easy and maximises shelf space for self-service shopping.

Reorder level

Average daily demand multiplied by lead time in days, plus safety stock; stock is reordered when the quantity on hand falls to this point.

ABC analysis

Stock classification by value: A items are few SKUs with the largest value share and need tight control, while C items are many low-value SKUs.

FEFO

First expired, first out: a stock rotation rule issuing the item with the earliest expiry date first, used for perishables and dated goods.

Stock turnover ratio

Cost of goods sold divided by average inventory at cost, indicating how many times stock is sold and replaced during a period.

Cash drawer reconciliation

Opening float plus cash sales minus refunds and petty payments gives expected closing cash; the counted cash is compared with this figure.

Tax invoice

A GST-compliant bill showing GSTIN, invoice number and date, HSN or SAC code, taxable value, tax rate and tax amount.

Trade discount

A reduction from list price allowed to a buyer on the invoice, deducted before tax is calculated on the taxable value.

Void bill

A cancelled sale transaction that must carry a stated reason and authorisation, with the original copy retained and the cancellation recorded.

Active listening

Attending fully to a speaker by maintaining eye contact, not interrupting, paraphrasing what was said and asking clarifying questions to confirm understanding.

Seven Cs of communication

Clear, concise, concrete, correct, coherent, complete and courteous - a checklist for messages that are easy to understand and act upon.

Noise in communication

Any interference that distorts a message between sender and receiver, such as background sound, poor network, jargon or a distracted listener.

Grievance escalation

The defined route for raising a workplace complaint: supervisor first, then store manager, then HR or grievance committee, with the matter recorded in writing.

PASS technique

Fire extinguisher procedure: pull the pin, aim at the base of the fire, squeeze the handle, sweep from side to side.

Legal Metrology declaration

Mandatory package particulars including net quantity, maximum retail price and manufacturer or packer details, required under the Legal Metrology Act, 2009.

FSSAI licence

The food safety registration or licence required for businesses handling food, covering storage, hygiene and labelling standards for food products.

Conversion rate

Number of orders divided by number of site visits, multiplied by one hundred, expressing how many visitors actually buy.

Cart abandonment rate

Carts abandoned divided by carts created, multiplied by one hundred, showing the share of online shoppers who leave before completing payment.

D2C retailing

Direct-to-consumer selling, where a brand sells through its own website or store to the buyer without an intermediary retailer or marketplace.

Break-even quantity

Fixed costs divided by the difference between selling price per unit and variable cost per unit, giving the units needed to cover all costs.

Working capital

Current assets minus current liabilities; in retail it is largely cash tied up in stock and receivables minus what is owed to suppliers.