MATSEC SEC Retail key terms

A business that sells goods or services directly to the final consumer, rather than to another business for resale. Retailers range from small corner shops to large supermarket chains and online stores.

A business that buys goods in bulk from producers and sells them in smaller quantities to retailers, who then sell to consumers. Wholesalers usually do not sell directly to the public.

The route a product follows from producer to consumer, including any intermediaries such as wholesalers, distributors and retailers. Choosing a short or long channel affects price, availability and control over how goods are sold.

A company that operates several shops under the same brand and central management, such as a supermarket chain. Buying is usually centralised, giving the business bulk-purchase discounts and consistent pricing across branches.

A shop owned and run by an individual or family rather than a large chain. Independents often compete on personal service, local knowledge and flexibility rather than on low prices.

An arrangement where an independent operator pays a fee to trade under an established brand, following the franchisor's rules on products, pricing and appearance. The franchisee keeps the profits but carries much of the risk.

Selling goods or services through websites, apps or online marketplaces. It requires stock visibility, secure payment handling and delivery or collection arrangements, and competes directly with physical shops.

An ordering method where a customer buys online or by phone and picks the goods up at a store or collection point. Staff must locate, reserve and hand over the correct items promptly and check identity where needed.

The support and assistance a retailer gives customers before, during and after a purchase, including advice, problem-solving and complaint handling. Good service builds repeat business and word-of-mouth recommendations.

The overall attitude and standards a business applies to treating customers well, such as courtesy, listening, respect and going beyond the minimum. It shapes how customers feel about the brand, not just the transaction.

What a shopper assumes will happen when dealing with a retailer, such as accurate product information, fair prices, working goods and quick help. Meeting or exceeding them creates satisfaction; falling short creates complaints.

Help provided once a sale is complete, such as returns, repairs, warranties, exchanges and follow-up advice. It protects the customer's purchase and encourages them to return to the same retailer.

The structured process of listening to a customer's problem, acknowledging it, investigating, offering a fair solution and recording the outcome. Handled well, a complaint can keep a customer who might otherwise leave.

Knowing a product's features, benefits, materials, sizes, care requirements, limitations and how it compares with alternatives. It allows staff to answer questions honestly and recommend suitable items.

Features are factual characteristics of a product, such as fabric or capacity; benefits are what those features mean for the customer. Selling links each feature to a benefit that matters to that particular shopper.

How products are presented and promoted in store or online to attract attention and increase sales, including layout, displays, signage, lighting and stock placement. Good merchandising makes shopping easier and encourages extra purchases.

A diagram showing exactly where each product should be placed on shelves or display units. Staff use it to keep layouts consistent, ensure best-selling lines are visible and make restocking quicker.

The ticket or label fixed to the shelf showing a product's price and often its unit price and barcode. It must match the till price; mismatches can cause disputes and may breach pricing rules.

The cost per standard measure, such as per kilogram or per litre, shown alongside the total price. It lets shoppers compare value between different pack sizes and brands.

The staged sequence a salesperson follows: approaching the customer, finding out needs, presenting suitable products, handling objections, closing the sale and following up. Each stage builds on the previous one.

A question that invites a full answer rather than a yes or no, usually starting with what, how, when or why. In retail it helps staff discover a customer's real needs and preferences.

Responding to a customer's doubts about price, suitability or quality with information, reassurance or alternatives rather than pressure. Done well, it clarifies the decision and keeps trust intact.

The point where the salesperson helps the customer commit to buying, for example by confirming the choice, asking how they wish to pay or summarising the benefits. It should feel natural, not pushy.

Encouraging a customer to buy a higher-value or upgraded version of what they were considering. It only works ethically when the upgrade genuinely suits the customer's stated needs.

Suggesting related or complementary products that add value to a purchase, such as batteries with a toy or a case with a phone. Suggestions should be relevant and never forced on the customer.

The place where a transaction is completed, usually a till or checkout, including the equipment used to scan items, take payment and issue a receipt. It is also where stock records are updated automatically.

A printed pattern of lines and numbers that identifies a product and is read by a scanner at the till. It links the item to its price and stock record, speeding up checkout and improving accuracy.

Card payment taken at the till, where the customer's bank transfers money to the retailer electronically. Staff must check the amount, confirm the transaction is approved and keep card data secure.

A card or device payment made by holding it near a reader without entering a PIN, usually for small amounts. Staff should know the spending limit and when a PIN or signature is still required.

The procedures for taking, counting, securing and banking notes and coins, including giving correct change and checking for counterfeit notes. It protects both the business and the customer from error and theft.

The amount of change kept in a till at the start of trading so staff can give change to customers. It is counted and recorded so shortages or surpluses can be traced.

Comparing the cash actually in the till with the expected takings recorded by the till system, and investigating any difference. It is a key control against theft and accounting error.

The log, often computerised, of how many units of each product the business holds and how many have been received, sold or returned. Accurate records prevent both empty shelves and excess stock.

A physical count of the goods held, carried out regularly to check the stock record against reality. Differences reveal losses from theft, damage or recording errors and inform future ordering.

The loss of stock that cannot be explained by sales, caused by theft, fraud, damage, spoilage or administrative error. Reducing shrinkage protects profit margins and is measured during stocktakes.

Putting older stock at the front and newer stock behind so goods are sold in date order and waste is minimised. It is essential for perishable items such as food and medicines.

Selecting and gathering the exact items a customer or branch has ordered, checking quantities and condition before packing or handover. Errors here cause short deliveries and complaints.

Lifting, lowering, carrying, pushing or pulling loads by hand. Correct technique, such as bending the knees and keeping the load close, reduces the risk of back and other injuries at work.

A careful look at what in the workplace could harm people, how likely and how serious that harm is, and what controls are needed. It is a legal duty for employers and should be reviewed regularly.

Clothing or equipment worn to reduce a specific hazard, such as gloves, safety shoes, aprons or eye protection. It is a last line of defence after other controls and must be suitable and maintained.

The legal protections a shopper has when buying from a trader, including that goods are of satisfactory quality, fit for purpose and as described. Remedies include refunds, repairs and replacements.

What a customer is entitled to when goods or services fall short of the legal standard, such as a refund, repair, replacement or price reduction. The appropriate remedy depends on the fault and timing.

A manufacturer's or retailer's promise to repair or replace faulty goods within a stated period, in addition to the customer's legal rights. Staff should explain what it covers and what it excludes.

Acting fairly and responsibly towards customers, workers and suppliers, for example by avoiding misleading claims, respecting labour standards and sourcing honestly. It protects the business's reputation and public trust.

Giving full attention to a speaker, noting their words and tone, and confirming understanding by summarising or asking follow-up questions. It is central to good service and to working well in a team.

Working cooperatively with colleagues so shared tasks such as restocking, serving and cashing up are completed accurately and on time. It depends on clear communication, reliability and respect for each person's role.

The transfer of information and responsibility from one shift or colleague to the next, covering unfinished tasks, incidents and anything the next person must know. A clear handover prevents mistakes and gaps in service.

Keeping customer, staff and business information private and sharing it only with those who genuinely need it. It covers payment details, personal data and commercial information, and supports trust and legal compliance.