UPMSP Vocational Retail Trading flashcards

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

Retail

Sale of goods or services to the final consumer for personal, non-business use. The retailer is the last link between the distribution chain and the consumer.

Retail shrinkage

Loss of recorded stock through theft, fraud, damage, or paperwork error, expressed as a percentage of sales. It reduces gross margin directly without any corresponding sale.

Retail mix

The controllable set of decisions a retailer makes: merchandise assortment, price, location, promotion, store presentation and atmosphere, and customer service. Together these shape the customer's store choice.

Hypermarket

A very large store combining full food ranges with substantial non-food ranges under one roof, typically located away from prime high streets and relying on high volume and low margins.

Category killer

A large specialty store that offers a very deep assortment in one category at competitive prices, often drawing customers from a wide trading area and weakening smaller general retailers nearby.

Franchise model

An arrangement where the franchisor licenses its brand, systems and supply to a franchisee, who invests capital and operates the outlet under agreed standards and pays fees or royalties.

Span of control

The number of subordinates who report directly to one manager. A narrow span allows closer supervision; a wide span relies more on written procedures and trained staff.

Stock keeping unit

A unique combination of product, size, colour and pack that is counted, priced and tracked separately. Two shirts differing only in size are two distinct SKUs.

FEFO rotation

First Expired, First Out: stock with the earliest expiry date is sold or issued first. It applies to perishables, medicines and dated packaged goods, unlike plain FIFO.

Cross-selling

Offering a complementary product related to what the customer is already buying, such as shoe polish with shoes or a case with a phone, to increase units per transaction.

Gross margin percentage

Gross profit divided by net sales, multiplied by 100. Gross profit equals net sales minus cost of goods sold; the ratio shows how much of each sale remains after product cost.

Inventory turnover ratio

Cost of goods sold divided by average inventory at cost. A higher ratio means stock moves faster and less working capital is locked in shelves and the stockroom.

Reorder level

The stock level that triggers a fresh order: average daily sales multiplied by supplier lead time in days, plus a safety stock buffer for demand and supply variation.

ABC analysis

Classification of stock by value: A items are few but high value and need tight frequent control, B items moderate, and C items numerous but low value with simple periodic checks.

Service quality RATER

Five dimensions customers use to judge service: Reliability, Assurance, Tangibles, Empathy and Responsiveness. Reliability, doing what was promised, is usually rated most important.

Moment of truth

Any point where a customer interacts with the store and forms an impression: entry, greeting, product trial, billing queue, packing and exit. Each one can win or lose the sale.

Objection handling

Responding to a buyer's doubt by listening fully, acknowledging the concern, clarifying it, answering with evidence, and confirming the doubt is resolved, without arguing or criticising competitors.

CGST and SGST

For a sale within one state, GST is split equally into Central GST and State GST, each at half the notified rate. Inter-state supplies attract the full rate as IGST instead.

Cash reconciliation

Expected cash equals opening float plus cash sales minus refunds and petty payouts. Variance is counted cash minus expected cash and must be reported even when it is zero.

Z-report

The end-of-day POS summary that closes the trading day, showing gross sales, returns, discounts, taxes collected, and tender-wise totals for cash, card, UPI and credit.

Average transaction value

Total sales divided by the number of bills. It rises when staff cross-sell or up-sell, and is tracked alongside units per transaction and conversion rate.

Planogram

A diagram that fixes the exact shelf position and number of facings for each SKU on a fixture. Compliance is checked by comparing the actual shelf with the planogram.

Goods received note

The document raised when stock arrives, recording quantity, MRP, batch and expiry checked against the purchase order and invoice. It authorises the stock to enter inventory records.

Decompression zone

The first one and a half to two metres inside a store entrance. Shoppers tend to walk past it while adjusting, so it is kept open with the first display placed just beyond.

Colour blocking

A display technique that groups merchandise by colour family to create visual impact and easier scanning, often combined with size grading from small to large within each block.

Active listening

Giving full attention without interrupting, paraphrasing what the speaker said to confirm understanding, asking clarifying questions, and summarising before responding. It reduces misunderstandings at the counter.

Communication barriers

Interferences that distort a message: physical noise, semantic problems such as jargon, psychological factors such as stress or prejudice, and organisational factors such as hierarchy or unclear channels.

Break-even quantity

Fixed costs divided by the difference between selling price per unit and variable cost per unit. It is the volume at which total revenue equals total cost and profit is zero.

Working capital

Current assets minus current liabilities. For a retailer it is mainly cash tied up in stock plus a buffer to pay rent, wages and suppliers before sales are collected.

PASS technique

The sequence for using a fire extinguisher: Pull the pin, Aim at the base of the fire, Squeeze the handle, Sweep side to side until the fire is out.

Manual handling rule

Keep the load close to the body, bend the knees rather than the back, avoid twisting while lifting, and use a trolley for loads beyond a safe individual limit.

UPI collect request

A payment request sent to a UPI user who must approve it to send money. Approving a collect request debits the payer, so an unexpected request should be rejected as possible fraud.