MATSEC SEC Retail flashcards

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

Retail definition

The sale of goods or services directly to the final consumer for personal or household use, not for resale. The retailer is the last link between producer and consumer.

Multiple retailer

A retail business operating many outlets under common ownership with central buying, central branding and standard operating procedures, giving economies of scale in purchasing and marketing.

Symbol group

A voluntary group of independent retailers trading under a shared brand and buying terms while keeping individual ownership. It gives independents chain-style pricing and promotion support.

Franchising

An arrangement where the franchisor licenses its brand, systems and supply to a franchisee, who pays an initial fee and continuing royalties and follows set operating standards.

Retail mix

The combination of product range, price, location, promotion, store layout and service level a retailer uses to serve its target customers and create a distinct market position.

Service gap model

A model showing service shortfalls arising between customer expectations and management perception, service standards, actual delivery, and the promises made to customers through advertising.

Moments of truth

Every point where a customer meets the business, such as the entrance, shelf, till or returns desk. Each confirms or breaks the service promise.

Service recovery paradox

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

Customer lifetime value

Average purchase value multiplied by purchase frequency per year and by average retention years. It estimates the total value of a customer relationship over time.

Complaint handling sequence

Listen without interrupting, acknowledge and apologise, establish the facts, agree a remedy within policy, act promptly, then follow up to confirm the customer is satisfied.

Planogram

A diagram specifying the exact position and number of facings of each product on a fixture. Merchandising audits check that the shelf matches the planogram.

Facing or blocking

Pulling products to the front edge of the shelf and aligning labels so the fixture looks full, improving visibility and giving the impression of complete stock.

Golden zone

The shelf area roughly between waist and eye level, where products are most visible and easiest to reach. High-margin and impulse lines are usually placed there.

FEFO stock rotation

First expired, first out: goods with the earliest expiry date are sold first. Used for date-coded products such as chilled food, medicines and fresh goods.

Feature, advantage, benefit

A selling technique: state what the product has (feature), what that does (advantage), then what it means for this customer's stated need (benefit).

Alternative-choice close

A closing technique that assumes the sale and offers two acceptable options, such as which colour or which delivery date, rather than asking whether to buy.

Upselling versus cross-selling

Upselling offers a higher-value or upgraded version of the chosen product. Cross-selling offers a related, complementary product to add to the same purchase.

Conversion rate

The number of sales divided by the number of customer contacts, multiplied by 100. It measures how effectively staff turn enquiries into completed transactions.

Cash variance

Counted cash minus expected cash, where expected cash equals opening float plus cash sales minus refunds and paid-outs. Negative is a shortage, positive an overage.

Void versus refund

A void cancels a transaction before settlement; a refund returns money after settlement. They are recorded as different operations in the point-of-sale system.

Card payment authorisation

The terminal checks the card and requests approval from the issuer through the acquirer. Settlement of approved transactions happens later, not at the moment of sale.

Sweethearting

A point-of-sale fraud where a cashier gives friends or family unauthorised discounts, free goods or unrecorded sales. Till audits and segregation of duties are the main controls.

Stock turnover

Cost of goods sold divided by average stock value. Days of stock equals 365 divided by stock turnover. Higher turnover generally means stock is being sold faster.

Reorder level

Average daily sales multiplied by supplier lead time in days, plus safety stock. Stock is reordered when the quantity on hand reaches this level.

Shrinkage

The difference between recorded stock and actual stock. Main causes are customer and staff theft, administrative error, supplier error, damage and waste.

Use by versus best before

'Use by' is a safety date and food must not be sold after it. 'Best before' is a quality date and food may still be sold after it if safe and acceptable.

Risk assessment

A recorded process identifying hazards in the workplace, deciding who may be harmed and how, evaluating the risk, and setting out control measures to reduce it.

Manual handling technique

Assess the load, keep the back straight, bend the knees, hold the load close to the body, avoid twisting, and use a trolley or ask for help with heavy items.

Electronic article surveillance

Tags or labels attached to merchandise that trigger an alarm at store exits unless removed or deactivated at the till. A deterrent against shop theft.

Satisfactory quality

A legal standard requiring goods to be fit for purpose, of acceptable appearance and finish, safe, and durable, taking account of price, description and normal use.

Cooling-off right

A cancellation right in distance and off-premises sales allowing the consumer to withdraw within a set period. The trader must give prescribed pre-contract information.

Active listening

Paying full attention, not interrupting, noting key points, and reflecting back or summarising what was said to confirm understanding before responding.