Sales and Merchandising Glossary: Key Retail Terms Explained
Dive into the essential glossary of sales and merchandising, a cornerstone for anyone in the retail industry. This collection of terms and definitions provides insights into the strategies and techniques vital for retail excellence. Whether you’re a seasoned professional or new to the field, understanding these terms will enhance your knowledge and operational efficiency.
Upselling: A sales technique where a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.
Planogram: A diagram or model that indicates the placement of retail products on shelves in order to maximize sales.
Assortment Planning: The process of selecting the range of products that will be offered in specific locations or channels, based on customer preferences, sales data, and market trends.
Visual Merchandising: Techniques used to enhance the aesthetic appeal of product displays and store layouts to attract customers and boost sales.
Planogram Compliance: Ensuring that product placement and shelf layout follow the predefined planogram designs to optimize sales and maintain brand consistency.
Category Management: A retail strategy where products are managed by category as strategic business units, focusing on product selection, pricing, and promotions to maximize sales.
Price Optimization: The use of data analytics to determine the best pricing strategies for products, considering factors like demand, competition, and inventory levels.
Cross-Merchandising: The practice of displaying products from different categories together to encourage additional purchases, such as placing complementary items near each other.
Sales Forecasting: Predicting future sales volumes based on historical sales data, trends, and market analysis to inform inventory and marketing decisions.
Stock Keeping Unit (SKU) Rationalization: The process of analyzing the performance of SKUs to determine which products should be continued, discontinued, or introduced.
Merchandise Hierarchy: A structured categorization of products, from broad categories to finer classifications, used for assortment planning, reporting, and management.
Promotional Merchandising: Creating displays and marketing materials focused on promoting specific products or offers to increase sales during a promotional period.
Dynamic Pricing: Adjusting prices in real-time based on market demand, competition, and inventory levels to optimize sales and profitability.
Endcap Marketing: Utilizing the endcap spaces (the end sections of aisles) for promotional displays to capture customer attention and drive product sales.
Omnichannel Merchandising: Coordinating product selection, presentation, and promotions across all sales channels (in-store, online, mobile) to provide a cohesive shopping experience.
Retail Space Allocation: Determining the optimal amount of floor space to allocate to different product categories or SKUs to maximize sales and customer satisfaction.
Markdown Management: Strategically planning price reductions on products to clear inventory, stimulate sales, or respond to product lifecycle changes.
Point of Purchase (POP) Displays: Specialized sales displays located where the purchase decision is made, often near the checkout area, to grab customer attention and encourage impulse buys.
Shopper Marketing: Strategies designed to influence consumers’ in-store behavior and decision-making process, enhancing the shopping experience and increasing sales.
Inventory Turn Strategies: Approaches for managing inventory levels to balance between having enough stock to meet demand and minimizing excess inventory.
Consumer Packaged Goods (CPG) Merchandising: Specific strategies for marketing and displaying CPGs to increase product visibility and sales.
Loyalty Program Integration: Incorporating loyalty programs into the sales and merchandising strategy to encourage repeat purchases and gather customer data for personalized marketing.
Merchandise Performance Analysis: Reviewing sales data, inventory turnover, and profitability by product or category to inform future merchandising decisions.
Seasonal Merchandising: Adjusting product offerings, displays, and promotions to align with seasonal demand patterns and events.
Product Bundling: Combining complementary products for sale as a single package deal to increase the perceived value and encourage purchases.
Flash Sales Strategy: Implementing limited-time offers to create urgency, drive traffic, and quickly sell inventory.
Customer Journey Merchandising: Tailoring product placement and promotional strategies to align with different stages of the customer journey, from awareness to purchase.
Mastering the language of sales and merchandising is a step towards retail mastery. By familiarizing yourself with this glossary, you equip yourself with the knowledge necessary to navigate the dynamic retail landscape successfully. Keep this guide handy as a reference to empower your sales strategies and merchandising efforts.