Retail Management Basic Vocabulary Terms
Variety (breadth of merchandise): wide vs. narrow- The number of merchandise categories
Assortment (depth of merchandise): deep vs. shallow
-the number of items in a category (SKUs)
First tier Upscale, high fashion chains with exclusive designer merchandise and excellent customer service
Second tier Retailers sell more modestly priced merchandise with less customer service
Third tier Value oriented caters to more price conscious customer
Category killer/specialist A discount retailer that offers a narrow but deep assortment of merchandise in a category and thus dominates the category from the customers' perspective. Also called a category specialist.
Convenience store A store that provides a limited variety and assortment of merchandise at a convenient location in a 2,000- to 3,000-square-foot store with speedy checkout
Conventional supermarket A self-service food store that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise.
Department store A retailer that carries a wide variety and deep assortment, offers considerable customer services, and is organized into separate departments for displaying merchandise.
Discount store A general merchandise retailer that offers a wide variety of merchandise, limited service, and low prices.
Franchising A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor.
Full-line discount store Retailers that offer a broad variety of merchandise, limited service, and low prices.
Hypermarket Large (100,000-300,000 square feet) combination food (60-70 percent) and general merchandise (30-40 percent) retailer.
North American Industry Classification System (NAICS) Classification of retail firms into a hierarchical set of six-digit codes based on the types of products and
Assortment (depth of merchandise): deep vs. shallow
-the number of items in a category (SKUs)
First tier Upscale, high fashion chains with exclusive designer merchandise and excellent customer service
Second tier Retailers sell more modestly priced merchandise with less customer service
Third tier Value oriented caters to more price conscious customer
Category killer/specialist A discount retailer that offers a narrow but deep assortment of merchandise in a category and thus dominates the category from the customers' perspective. Also called a category specialist.
Convenience store A store that provides a limited variety and assortment of merchandise at a convenient location in a 2,000- to 3,000-square-foot store with speedy checkout
Conventional supermarket A self-service food store that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise.
Department store A retailer that carries a wide variety and deep assortment, offers considerable customer services, and is organized into separate departments for displaying merchandise.
Discount store A general merchandise retailer that offers a wide variety of merchandise, limited service, and low prices.
Franchising A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor.
Full-line discount store Retailers that offer a broad variety of merchandise, limited service, and low prices.
Hypermarket Large (100,000-300,000 square feet) combination food (60-70 percent) and general merchandise (30-40 percent) retailer.
North American Industry Classification System (NAICS) Classification of retail firms into a hierarchical set of six-digit codes based on the types of products and