Retail management glossary, Basics concepts of retailing, retailer, Merchandising, Retail pricing, Retail Branding, Merchandise, retail operations, merchandise management, store layout, green retailing, Store and Non store Retailers, Price bundling, retail mix, retail strategy,

1. Retail Management Glossary
Dr. Parveen Kaur Nagpal
parveenknagpal@gmail.com
M.Com, MHRD, M.Ed, Ph.D.
1. Airport Retailing
Airport retailing means retailing activities done through stores located in airports. The
passenger traffic at airports has gone up significantly with more low-cost airlines. Also the time
spent by passengers at airports has increased due to early check-in times set by airlines
following security and operational concerns. This has increased retail opportunities, and
airports in recent years have considered retail as an integral part of operations.
2. Anchor Store
This may be one of the largest retail stores in a mall or a shopping centre. This department store
or grocery store helps to generate customer traffic, making it advantageous for neighbouring
smaller retailers. The large advertising budgets and wide range of desirable merchandise help
anchor stores attract shoppers to the mall. Those shoppers often spend money at the anchors as
well as at surrounding smaller retailers.
Anchor Store is also known as a draw tenant, anchor tenant, or key tenant.
3. Anchor Pricing
People usually compare when valuing products and having an anchor price makes it easier.
Anchoring is a cognitive bias that describes the common human tendency to rely too heavily
on the first piece of information offered (the "anchor") when making decisions. During decision
making, anchoring occurs when individuals use an initial piece of information to make
subsequent judgements. Once an anchor is set, other judgements are made by adjusting away
from that anchor.
For example, A customer shopping for a TV might look at two different models and compare
their features and prices. One might be 50 inches and cost Rs. 60,000 while the other might be
48 inches and cost Rs. 48,000. In this case, the customer will probably think that the Rs. 48,000
TV offers the best value because he is paying Rs. 12,000 less for a TV that is only 2 inches
smaller. That thought process is exactly what the retailer intends for the customer to do. He
wants the Rs. 60,000 TV to be an anchor so the Rs.48,000 TV looked like a bargain in
comparison.

2. 4. Atmospherics and Aesthetics
It is an important element of the store interior. Atmospherics is the design of an environment
with the help of visual communications, lighting, colour, music, fragrance and so on to
stimulate customers' perceptual and emotional responses and thereby influence their buying
behaviour. Aesthetics takes into consideration factors like the actual size of the store, the
colours, textures, etc. used within the store to create a particular look and feel of the store.
5. Assortment
An assortment is the combination of all products made available in a store and a set of products
offered within a product category. These products form a set because they share similar
physical characteristics.
6. Assortment Planning
Assortment Planning is the process of deciding the products or merchandise and the quantity
of each product or category of merchandise to be bought. It involves determining the quantities
of each product, along with the details of colour, size, brand, materials, etc., that will be
purchased so as to fit into the overall merchandise plan. The main purpose of creating an
assortment plan is to create a balanced assortment of merchandise for the customers.
7. Automated Vending
This is a way of selling merchandise through vending machines. This is also referred to as
automatic selling. Vending machine is useful in dispensing items like snacks, tickets, beverages
etc. after a currency is inserted by the customer or is credited into the machine. It is the foremost
impersonal kind of selling, however, it provides ease and access to customers 24 hours on a
daily basis. Examples: tea and coffee vending machines, railway ticket vending machine at the
stations.
8. Bar Coding
Bar code is the small image of lines (bars) and spaces that is affixed to retail store items,
identification cards, and postal mail to identify a particular product number, person, or location.
To make the retail operations system easier and simplest, bar coding system where, unique bar
code is given to every product to give identification along with the human readable numbers.

3. 9. Buying Cycle
The buying cycle is a patterned process that the buyers go through when contemplating a
purchase. It helps retailers understand the pattern that the buyers go through in the industry for
effective marketing and promotions. The buying cycle is divided in stages such as Awareness,
Consideration, Purchase, After – Sales.
10. Cash Wraps
Cash wraps, also known as point-of-purchase (POP) counters or checkout areas, are places in
the store where customers can purchase merchandise. Because many customers go to these
areas and may wait in line to make a purchase, retailers often use these areas to display impulse
items. For example, in supermarkets, batteries, candy, razors, and magazines are often shelved
at the checkout counter
11. Catalogue Showroom
Catalogue retailers are the ones that specialize in house ware, consumer electronics, jewellery
etc. Here the customers come and place the order through a catalogue of the products that he
would like to buy and then arrangement is done to bring the product from the warehouse for
inspection and purchase.
12. Category Captain
Category captain is the vendor that works with the retailer to develop a better understanding of
shopping behavior, create assortments that satisfy consumer needs, and improve the
profitability of the merchandise category. Thus the category captain is a supplier who forms an
alliance with the retailer to enable the latter to develop consumer insight, satisfy consumers
and improve performance and profit across the category.
13. Chain Retailer or a Corporate Retail Chain
A corporate retail chain exists when two or more outlets are under common ownership, and are
usually having the same merchandise, ambience, promotional schemes etc. E.g. Van Heusen,
Arrow, Planet M etc.
14. Cherry Pickers
Cherry Pickers are customers who go from one store to another, buying only items that are on
special discounts. These shoppers are unprofitable for retailers.

4. 15. Circulation Plan
Circulation plan is the silent guide for customers to know where to go in order to explore the
entire store offerings. The retailers want each customer entering his store to circulate through
the entire store. Most retailers adopt the policy of strategically placing the most demanded
products and impulse products at various points in the store. This certainly leads to people
moving around and browsing the store. This can be achieved by planning the circulation and
the location of merchandise.
16. Clearance Markdowns
Clearance markdowns focus primarily on how retailers get rid of unwanted merchandise, this
merchandise can also be used to attract different market segments based on their degree of
price sensitivity. Fashion-conscious customers who have a high willingness to pay because
they want to be the first to wear the latest fashions self-select to pay higher prices. More price-
sensitive customers wait to buy the merchandise at the end of the season when prices are lower.
17. Convenience Stores
These are stores essentially found in residential areas and convenient locations. They provide
limited variety of merchandise and mainly sell food and groceries. Convenience stores are
relatively small, open for long hours and seven days a week.
18. Consumer Co-operatives
Consumer Cooperatives provide essential commodities at cheaper costs. As a national policy,
shopper cooperatives are inspired and developed as a democratic establishment, owned,
managed and controlled by its members, to protect the interest of the common customers.
Examples of co-operatives in Mumbai are the Sahakari Bhandar and Apna Bazaar retailers.
19. Coupons
Coupons offer a discount on the price of specific items when they are purchased. Coupons are
issued by manufacturers and retailers in newspapers, on products, on the shelf, at the cash
register, over the internet, and through the mail. Retailers use coupons because they are thought
to induce customers to try products for the first time, convert first-time users to regular users,
encourage large purchases, increase usage, and protect market share against the competition.

5. 20. Copycat brands
Copycat brands imitate the manufacturer’s brand in appearance and packaging, generally are
perceived as lower-quality, and are offered at lower prices. Copycat brands are found mostly
in drugstores and grocery stores. Many retailers monitor the introduction of new national
brands and then modify them to meet the needs of their target customers. For instance, a
copycat brand may be placed next to the manufacturer’s brands and often look like them.
21. Counterfeit Merchandise
Counterfeit merchandise is the inferior quality merchandise, made or sold under another's
brand name without the brand owner's authorization., i.e. without the permission of the owner
of a trademark, a copyright or a patented invention, that is legally protected in the country
where it is marketed. E.g. Copy of branded hand bags such as Louis Vuitton, Prada etc.
22. Cross Selling/ Cross Merchandising
This refers to the practice of displaying merchandise from different categories to drive add-on
sales. The sales person associated with one department attempts to sell complementary
merchandise form other departments to their customers. E.g. DVD players placed near
speakers, accessories etc that enhance performance of the player. Thus retailers strategically
place the two items together.
23. Customer Loyalty
Sometimes customers are committed to buying merchandise and services from a particular
retailer. These comprise the loyal customers who will continue to shop at that particular store
even if a competitor opens a store nearby and offers slightly lower prices.
24. Department Store
Department stores are retailers that carry a broad variety and deep assortment, offer customer
services, and organize their stores into distinct departments for displaying merchandise. They
are large scale outlets that are often multi leveled. They offer wide range of merchandise
including clothing, accessories, cosmetics, household goods etc. from more or less separate
departments on different floors. E.g. Shopper’s Stop, Globus, Westside, Lifestyle etc.

6. 25. Depth of Assortment
The variety in any one goods/service category (product line) with which a retailer is involved.
It refers to the average number of SKU's within each brand of the merchandise line. For
example, if a retailer decides to stock 10 designs of ladies tops in five different sizes and six
colours, then it would be the depth of the assortment.
26. Digital Signage
Digital signage includes signs whose visual content is delivered digitally through a centrally
managed and controlled network, distributed to servers in stores, and displayed on a flat-panel
screen. The content delivered can range from entertaining video clips to simple displays of the
price of merchandise.
27. Direct Selling
Direct selling is a non-store based retail channel used by top global brands and smaller,
entrepreneurial companies to market products and services to consumers. It involves making a
personal contact with the end consumer, may be at his residence or place of work. Companies
market all types of goods and services, including jewellery, cookware, cosmetics, housewares,
etc.
28. Discount Stores
Discount Store are stores that offer standard merchandise at lower prices with lower margins
and high volume. They may offer broad variety but limited service. Mostly, discount stores
offer national brands. E.g. The Loot.
29. Everyday Low Pricing (EDLP)
Many retailers, particularly supermarkets and discount stores, have adopted an everyday low-
pricing strategy. This strategy emphasizes the continuity of retail prices at a level somewhere
between the regular non-sale price and the deep-discount sale price of retailers. Retailers that
adopt EDLP strategy include D-Mart and Big Bazar
30. Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is defined as the exchange of business information, through
standard interfaces, by using computers. It can also be interpreted as transmission of business
data between organizations in a computerized format. EDI helps in exchanging the information

7. from retailers to suppliers computers and facilitate orders, delivery notices, specifications,
invoices, sales returns etc.
31. Electronic Shelf Label (ESL)
An electronic shelf label (ESL) system is used by retailers for displaying product pricing on
shelves. These modules use electronic paper (E-paper) or liquid-crystal display (LCD) to show
the current product price to the customer. This communication network is the true
differentiation and must support reasonable range, speed, battery life, and reliability.
32. E-tailing
Electronic retailing (e-tailing) is the sale of goods and services through the internet. Electronic
retailing, or e-tailing, can include business-to-business (B2B) and business-to-consumer (B2C)
sales of products and services. E-tailing is a subset of e-commerce.
33. Exterior Store Design
The exterior store design is a function of the location of the retail store site, which is an
integration of various factors like the location of the store itself, impressive building, facilities
like parking and ease of access, architecture of the building etc. The store theme is in turn,
decided by the target customers that the store intends to serve and the merchandise mix offered.
The exterior store design is a function of the place where the store is located. If the store is
located in a shopping mall, the exterior store design may be decided upon by the mall
developer/promoter to ensure consistency in the look. The kind of image being projected by
the retailer also influences the image of the retail store. For example, a diamond jewellery retail
outlet located in a five star hotel carries the image of the five star hotel.
34. Fad Merchandise
Fad merchandise is the merchandise items that generate a high level of sale for a short period
of time. Fads are also known as crazes. A fad is a product that has a very brief product life
cycle that rises quickly in popularity but then declines about as quickly. E.g. Pokemon.
35. Fashion Merchandise
Merchandise that has high demand for a relatively short period of time is referred to as fashion
merchandise. Buying the right quantities at the right time is of great importance for this
category of products as the demand for the product is for a limited time. Excess buying may

8. result in heavy markdowns at the end of the season or when the product goes out of style.
Examples of such products include various shades in jeans, which may be in style for a season,
palazzo pants etc.
36. Five S’s of Retail Operations
The 5 S’s of Retail Operations was a model presented by Pal and Byrom, depicted by a fish
bone diagram. The 5 S are Systems, Standards, Stock, Space and Staff
37. Fixtures
Fixtures are used for storing and displaying merchandise. They may be floor fixtures or wall
fixtures and are manufactured in various materials like wood, glass, steel and synthetic.
Examples of fixtures include tables, racks, stands, shelves, gondolas, bins and other materials,
which may be used to display merchandise. Ideally, fixtures should be flexible so that the size
can be varied to suit the merchandise being displayed.
38. Flagship Store
This is a retailers primary location in a prominent area. It may be the chains largest store that
sells highest volume of high priced merchandise catering to the most upscale market.
39. Foreign Direct Investment (FDI) in Retail
Foreign Direct Investment (FDI) refers to capital inflows from abroad that is invested in retail
industry to enhance the economy of a country. FDI in retail industry means that foreign
companies in certain categories can sell products through their own retail shop in the country.
40. Franchise
A franchise is a contractual agreement between the franchisor and the franchisee, allowing the
franchisee to conduct a business under an established name as per a particular business format
in return for a fee, royalty or compensation.
The Franchisor: is the provider of the franchise, who owns the trademark/product/ service
and licenses the trademark to another party.
The Franchisee: is the person who pays for and purchases a franchise from a franchisor and
operates a business using the name, product, business format and other items provided by the
franchisor.

9. 41. Freeform Layout
In a free form, merchandise is arranged in an asymmetrical manner. It allows for free movement
to encourage people to browse and shop. Here the fixtures and merchandise are grouped into
free-flowing patterns on the sales floor. It works best in small stores. While there is no
standardized principle as to what needs to be a layout for a particular type of a store, the retailer
may choose the same on the basis of the target customer that he chooses to serve.
42. Graphics and Signage
Graphics and signage inform the customers about the products, price and special offers and
also help customers locate products in the store. Signage and graphics when used in the store
window can compel customers to enter the store and also help identify brands, indicate items
like 'new releases' or 'new arrivals' as the case may be, offer direction to various departments
within the store and so on.
Graphics within the store may be classified as:
o Theme graphics: relating to a particular theme being followed throughout the retail
store.
o Campaign graphics: relating to the current advertising campaign.
o Promotional graphics: pertaining to the promotional campaign being carried out in
the store, in a particular department.
Signage on the other hand, can be:
o Merchandise related: informing customers about the location, type, price or features
of merchandise within the store.
o Directional signs: directing customers towards the cash counters, gift wrapping areas,
customer service areas, washrooms, location of the lifts and staircases and trial rooms.
o Instructional signs: informing customers entering the store that the store is under
electronic surveillance, instructions about the malfunctioning of a lift, caution etc.
o Courtesy signs: Signs like 'Thank You, Visit Again'.
o Store directory: informing customers about the location of the various sections in the
store. It is placed at the entrance of the store or near the escalator, lifts and staircases.
43. Green Retailing
Green Retailing (GR) refers to the management approach that pursues environmental
protection to improve the retail value chain through eliminating waste, increasing efficiency
and reducing costs. It is an approach towards managing a retail business that takes advantage

10. of environmentally friendly processes. It is a part of the larger obligation of business -
Corporate Social Responsibility that describes the voluntary actions taken by a company to
address the ethical, social, and environmental impacts of its business operations.
44. Grid Layout
The Grid Layout has parallel aisles with merchandise on shelves on both sides of the aisles. It
has long aisles with highlighted items on the ends of the aisles which are known as endcaps. It
is well suited for customers who want to easily locate products they want to buy, and they make
their purchases as quickly as possible. Most supermarkets use the grid layout because this
design enables their customers to easily find the product they are looking for and minimize the
time spent on a shopping.
45. Hypermarket
The word hypermarket is derived from the French word hypermarche, which is a combination
of a supermarket and a department store. Hypermarkets are large stores (100,000 to 300,000
square feet), having a combination of food (60 to 70 percent) and general merchandise (30 to
40 percent). Hypermarkets stock items, ranging from groceries, hardware, and sports
equipment to furniture and appliances to computers and electronics. Examples of hypermarkets
in India include Big Bazaar, Star India Bazaar etc.
46. Independent Retailer
An independent retailer is the one who owns and operates only one retail outlet. Normally such
outlets have an owner or a proprietor and other working members in the outlet may be from
the family (like the mom and pop store). In India, there is huge number of independent retailers
ranging from a paanwala, small stationary store, to stores like Premsons, Amarsons etc.
47. Interior Store Design
Interior store design is a function of the aesthetics within the store, the merchandise sold within
and the space used for the same and the overall layout of the store.
48. Leader Pricing
Retailers sometimes price particular fast moving products at a lower price to attract customers
to the store. Some retailers call these products loss leaders. In a strict sense, loss leaders are
sold below cost. The key to successful leader pricing is that the product must appeal to a large

11. number of people and should appear as a bargain. For example, a grocery retailer can sell eggs
cheaper than other competing stores so that customers consider him while purchasing foodstuff.
Since the customer is also likely to buy milk, bread, flour etc. along with eggs, these products
are priced slightly higher. So, the profit foregone on eggs is more than recovered on other items
of groceries.
49. Leased Departments (shop-in-shops)
When a part of a department in a retail store is leased or rented to an outside party, it is termed
as a leased department. Thus a leased department is a space within a store leased to a third
party. The entity that leases the space typically runs the space as a separate business from the
host store. The leased department may either have independent ownership or represent a co-
branding effort with the host department store.
50. Lifestyle Merchandising
When a retailer provides merchandise or knowingly adopts a merchandise strategy, which will
serve the needs of a specific target audience in keeping with the lifestyles they lead, it is termed
as lifestyle merchandising. Products that have met with success in terms of lifestyle
merchandising, include furniture, cookware, accessories like watches, bags, exclusive
cosmetics, skincare, body-care and hair-care products etc. Example: Sanjeev Kapoors granite
non-stick cookware.
51. Loyalty Programs
Loyalty Programs are part of an overall CRM programs which may be prevalent in retailing,
from department store to a local pizza shop. Retailers provide long-term benefits and incentives
to repeat customers who demonstrate loyal buying behaviour. Members of loyalty programs
are identified when they buy from the store and use some type of loyalty card provided by the
retail outlets.
52. Mall
A mall is a large building complex with a conglomeration of shops of various sizes and types,
with fun, food and entertainment facilities that provide pleasurable shopping experience to the
customers. The first mall in India was set up in 1997 by the Goenka Group in Chennai, called
Spencer Plaza. Shopping malls play a key role in modern retailing and marketing system and
dominate the distribution system of goods.

12. 53. Mall Management
Mall management is defined as an overall operation and maintenance of the entire building
infrastructure, including the services and utilities, ensuring that they are used in a way that are
consistent with the purpose for which it was acquired. Mall management encompasses
operations, facilitates management, security, accounts, common area maintenance, marketing,
leasing and all the other functions even remotely related to a mall.
54. Market Penetration Pricing
Penetration pricing is the pricing technique of setting a relatively low initial entry price, a price
that is often lower than the eventual market price. The expectation is that the initial low price
will secure market acceptance by breaking down existing brand loyalties. Price penetration is
most appropriate when companies attempt to enter new or international markets.
55. Market Skimming Pricing
Price skimming is a strategy in which a retailer sets a relatively high price for a product or
service at first, and then lowers the price over time. It allows the firm to recover its sunk costs
quickly before competition steps in and lowers the market price. Skimming pricing strategy
works well when the products are considered to be prestige goods or luxury items.
56. Merchandise Category
The merchandise category is the basic unit of analysis for making merchandise management
decisions. A merchandise category is an assortment of items that customers see as substitutes
for one another. For example, a department store might offer a wide variety of girls’ dresses
sizes 4 to 6 in different colors, styles, and brand names.
57. Merchandise Management
Merchandise management is the process by which a retailer attempts to offer the right quantity
of the right merchandise in the right place at the right time and meet the company’s financial
goals. It is the core of retail management that includes need analysis, planning, acquisition,
handling and control of the merchandise investments of a retail operation.
58. Merchandise Planning
Merchandise planning is basically the act of creating a merchandise plan. It means planning
and control of merchandise inventory of the retail firm, in such a way that there is a balance

13. between the expectation of target customer and strategy of firm. Merchandise planning is a
systematic approach that aims at maximizing return on investment, through planning sales and
inventory in order to increase profitability.
59. Merchandise Procurement/Sourcing
Merchandise sourcing or procurement is the process of finding out the products from different
places, manufacturers and suppliers. The merchandise can be either manufactured or sourced.
60. Model Stock Plan
The retailer makes a budget to determine the funds available for buying and accordingly takes
a decision what to buy and in what quantity. This results in the creation of a Model Stock Plan.
Thus the model stock plan gives the precise items and quantities that need to be purchased for
each merchandise line.
61. Multi-Channel Retailers
Multichannel retailers are retailers that sell merchandise or services through more than one
channel. Multi-channel retailing is basically a marketing strategy that offers customers a choice
of ways to buy products. The strategy covers purchases from a store, purchases from a website,
telephone ordering, mail orders, interactive television, catalogue ordering and comparison
shopping sites. The aim of a multi-channel retailing strategy is to maximize revenue and loyalty
by offering customers choice and convenience.
62. Multiple Pricing
Under this pricing strategy, the customer is given a discount for making quantity or bulk
purchases. For example, a soap bar may be priced at Rs. 25 while a banded pack of 3 may be
sold for Rs. 68. Here the customer believes that he is getting a bargain for buying more units.
63. Mystery Shopping
This is an activity practiced by market research companies or even retailers themselves to
evaluate product or service quality or compliance. The mystery shopper acts like a regular
consumer and performs tasks like asking questions, submitting complaints, or simply
completing a purchase like they normally would. They would then provide feedback or write
reports detailing their experience with the retailer.

14. 64. Non Store Retailing
Non store retailing is a generic term describing retailing that takes place outside of shops and
stores i.e. off the premises of fixed retail locations. There is absence of the shop/physical store
and retailers sell to the customers through direct selling, mail orders, automated vending etc.
65. Odd Pricing
Odd pricing refers to the practice of using a price that ends in an odd number, typically a 9.
Retail prices are set in such a manner that the prices end in odd numbers, such as 95, 195, 99
etc. Odd pricing is used to denote lower sale prices. Odd pricing is a subset of psychological
pricing method based on the belief that certain prices or price ranges are more appealing to
buyers.
66. Off price Retailers
Here, the merchandise is sold at costs lower than that at retail stores. Off-price retailers
purchase manufacturers’ seconds, overruns or off seasons at a deep discount. The merchandise
that is offered in these stores may be in odd sizes, colours may be unpopular or with some
minor defects. They offer an inconsistent assortment of branded goods such as air conditioners,
refrigerators etc at low prices.
67. Omni-Channel Retailing
Omni-channel means establishing a presence on several channels and platforms such as brick-
and-mortar, mobile, online, catalogue etc. and enabling customers to transact, interact, and
engage across these channels simultaneously or even interchangeably. It basically integrates
all the channels together so as to give customers a seamless experience. Such retailers provide
customer the convenience and flexibility to purchase an item using their shopping app, and
then letting them pick up the merchandise in the store as well as allowing them to process a
return via website.
68. Organized Retailing
The organized retail comprises of the licensed retailers who are registered for sales tax, income
tax etc. and it comprises of the malls, supermarkets, hypermarkets etc. It can take form of
modern trade which include stores run by professional management.

15. 69. Planogram
A planogram is a tool used by the retailer that helps determine the location of merchandise
within a department. It is a diagram that visually communicates how merchandise and props
physically fit onto a store fixture or window to allow for proper visibility and price point
options. A planogram is created after taking into account factors like product sales, the
movement of the products within the product category and the space required for various
products.
70. Price Bundling
Price bundling is the practice of offering two or more different products or services for sale at
one price. For instance, McDonald’s offers a bundle of a sandwich, french fries, and a soft
drink in a Value Meal at a discount compared with buying the items individually. Price
bundling increases both unit and sales in rupees by increasing the amount of merchandise
bought during a store visit.
71. Private-label brands
Private-label brands, also called store brands, house brands, or own brands, are products
developed by retailers. In many cases, retailers develop the design and specifications for their
private-label products and then contract with manufacturers to produce those products. In other
cases, national-brand vendors work with a retailer to develop a special version of its standard
merchandise offering to be sold exclusively by the retailer. In these cases, the national-brand
vendor or manufacturer is responsible for the design and specification as well as the production
of the merchandise. E.g. Stop brand at Shoppers Stop.
72. Promotional Markdowns
Retailers employ promotional markdowns to promote merchandise and increase sales.
Markdowns can increase customer traffic flow. Retailers plan promotions in which they take
markdowns for holidays, for special events, and as part of their overall promotional program.
Another opportunity created by promotional markdowns is to increase the sale of
complementary products.
73. Race Track Layout
The race track layout is also called the loop layout. As the name suggests, the display is in the
form of a racetrack or a loop, with a major aisle running through the store. The idea is to control

16. the path of what the customers see before they get to the checkout. This layout facilitates the
goal of getting customers to see the merchandise available in multiple departments and thus
encourages unplanned purchasing. Low fixtures are used so that customers can see
merchandise beyond the products displayed on the racetrack. This layout is popularly found in
department stores like Shoppers Stop.
74. Radio Frequency Identification or RFID
Radio frequency identification (RFID) is a technology that allows an object or person to be
identified at a distance by means of radio waves. The RFID devices or tags are attached to
containers, shipping cartons, or even behind labels on individual items. They then transmit data
about the object in which they are embedded. Radio Frequency Identification (RFID) can be
described as a wireless bar code which provides wireless communication between objects and
readers.
75. Retail
Retail is the end or final stage of any economic activity. The word “retail” comes from the old
French word “retaillier”, which means to cut off or to break bulk.
76. Retailer
A retailer buys goods or products in large quantities from manufacturers or importers, either
directly or through a wholesaler, and then sells smaller quantities to the end-user. Retailer may
be defined as a dealer or trader who sells goods in small quantities. In other words, a retailer is
any business enterprise whose sale volume comes primarily from retailing.
77. Retailing
Retailing is a convenient and comfortable method of selling goods and services to the final
consumers for personal, non-business use. It is that value addition activity which adds services
along with the sale of goods/commodities.
78. Retail Formats
Retail format is a distinctive way in which the retailers organize their activities in order to
deliver the goods and services to the end consumer. Retail format describes the nature of
retailer’s operations and its retail mix (type of merchandise and services offered, pricing policy,

17. advertising and promotion programs, store design and visual merchandising, typical locations,
and customer services) that he will use to satisfy the needs of the target market.
79. Retail Mix
Retail mix includes the variables that a retailer can combine in alternative ways to arrive at a
marketing strategy for attracting the customers. The variables of retail mix include merchandise
variety and assortment, services offered, pricing strategies, store design, promotion, visual
merchandising etc.
80. Retail Pricing
Retail pricing is the pricing strategy adopted to fix the price of a merchandise when it is sold
to the end user for consumption through a third-party distribution channel.
81. Retail Shopper
Retail Shopper is the one who visits the retail store or even his website in search of
merchandise. Shoppers/ consumers have different needs that motivate them to go shopping.
The needs can be classified as utilitarian or hedonic. When consumers go shopping to
accomplish a specific task, such as a man buying a suit for job interview, he is seeking to satisfy
utilitarian needs. When consumers go shopping for pleasure, they are seeking to satisfy their
hedonic needs - their needs for entertaining, emotional, and recreational experiences. Thus,
from the consumer’s perspective, utilitarian needs are associated with work, whereas hedonic
needs are associated with fun.
82. Retail Strategy
Retail strategy is a clear and definite plan outlined by the retailer to tap the market. It is the
basic plan to build a long-term relationship with the consumers. Retail strategy is a statement
identifying the retailers target market, format that the retailer plans to use to satisfy the target
markets needs and the bases upon which the retailer plans to build a sustainable competitive
advantage.
83. Seasonal Merchandise
Seasonal merchandise are the products that sell well for specific time periods. Examples of
such products include rainwear like umbrellas and raincoats, winter wear, thermal clothing,
etc.

18. 84. Services Retail
Services retailers sell services to customers. Service retailing is labour-intensive and focuses
on training and development of the sales-force.
The main differences between retailing of products and retailing of services are on account of
the intangibility, simultaneity, perishability and inconsistency. Some of the key service areas
are retail banking, car rentals, restaurants, electricity, gas etc.
Service contracts can be entered in for a couple of durable goods like maintenance of water
filters, laptop systems, etc.
85. Shrinkage
Shrinkage is the difference between the amount of stock that a retailer has on record (books)
and the actual stock that is available in the store. Retail shrinkage is a reduction or loss in
inventory that may be caused by employee theft, shoplifting, administrative error, vendor fraud,
damage etc.
86. Single Pricing
Single pricing is a pricing strategy in which same price is offered to every customer who
purchases the product under the same conditions. Single pricing policy may also mean that
prices are set and cannot be negotiated by customers. Example: A dollar shop that charge one
price for a variety of items sold. This pricing policy is the opposite of a differential pricing
approach, in which prices may vary based on location, promotional offers, method of payment,
or other factors.
87. Space Planning
Space Planning is a fundamental element of the interior design process that starts with an in-
depth analysis of how the space is to be used. The retailer gets the plan drawn that defines the
space and the activities that will take place there. The space plan will also define the circulation
patterns that show how people will move through the space. The plan is finished by adding
details of all the furniture and fixtures.
88. Specialty Stores
A specialty store refers to a store that stocks a particular type of merchandise or a single product
of durable goods like furniture, household goods, consumer electronics etc. Such a business
model is characterized by a high level of service or product information being made available

19. to customers. Specialty stores concentrate on a limited number of complementary merchandise
categories. These are characterized by a narrow product line, with product depth concentrating
mostly on jewellery, apparels, furniture etc. E.g. Pedigree Stores.
89. Staple/Basic Merchandise
Staple merchandise are those products which are always in demand. They may be the basic
necessities like sugar, salt, pulses, groceries etc. Alternately, they may be products that have a
steady demand. Depending on the type of the retail model, the retailer has to determine the
staple products for the store.
90. Stock Keeping Unit (SKU)
A stock-keeping unit (SKU) is the smallest unit available for inventory control. In soft-goods
merchandise, for instance, SKU usually means a particular size, colour, and style. For example,
a pair of size 6, stonewashed, blue, straight-legged Levi jeans is the SKU.
91. Store Based Retailing
Store based retailing is a tangible retailing channel where the customers buy products after their
practical exposure in stores. These are the customers who like to see, feel and touch the product
before making actual purchase.
92. Store Design
Retail store design is a branch of marketing and considered part of the overall brand of the
store. Store design is important not only from retailers’ perspective but also consumer. Retailer
looks at store design from view point of target audience, their needs, buying habits, and
merchandise which he is going to sell. Consumers feel store design should be simple so that
they can move, navigate, appealing to his sensory perceptions, create a sense of belonging, a
sense of security and a pleasure in shopping experience.
93. Store Image
It is the way a store is defined in a shoppers mind. Store image is based on the stores physical
characteristics, its retail mix and a set of psychological attributes that develop an impression in
the minds of the consumers.

20. 94. Store Layout
Store layout is the design of a store’s floor space and the placement of items within that store.
It is the design in which a store’s interior is set up and one of the key strategies in its success.
Layouts also help retailers understand how much revenue per square foot they are making;
using this information, they can properly assess the strengths and weaknesses in their
merchandising mix. An ideal layout strikes the balance between the merchandise to be
displayed and productivity.
95. Store Marquee
The store marquee is a roof-like structure that bears a signboard, projecting over the entrance
of the retail store. Store marquee and the store frontage play an important role in influencing
the perception of consumers about the store. The store marquee is the first mark of
identification of the retailer or the retail store. It helps the retailer in identifying the store and
in attracting customers and it is an integral part of the building façade.
96. Supermarkets
A conventional supermarket is a large, self-service retail food store offering groceries, meat as
well as some non-food items, such as health and beauty products and general merchandise.
Supermarkets are usually characterized by large, low cost, low margin, high volume self-
service market designed to meet the food and non-food items need of the consumers. Generally,
the supermarket has a selling area of between 400 sq. m. and 2,500 sq. m, selling at least 70%
of its merchandise comprising of foodstuffs and everyday commodities. E.g. Food Bazaar.
97. Tele Marketing
Tele marketing is a kind of selling that needs publicity of merchandise on television discussing
its options, price, guarantee etc. Asian Sky search was the primary organization to introduce
television marketing in Asian countries. An inventory of phone numbers, area-wise is provided
for every town so that the customer can take decision and place the order for the merchandise
which can be delivered at home.
98. Unorganized Retailing
The 'unorganized retail sector' includes units whose activities are not regulated by any statute
or legal provision, and/or those, which do not maintain regular accounts. E.g. local kiraana
stores, hawkers, paanwalas etc.

21. 99. Visual Merchandising
Visual merchandising is associated with creating the overall look of the store. Visual
merchandising refers to anything that can be seen by the customer inside and outside a store,
including displays, decorations, signs and layout of space. It involves displaying merchandise
and décor in a store in a way that elicits a positive image of the store, gets customers' attention,
stimulates demand, leading to increase in sales.
100. Width of Assortment
Width is the number of different goods/service categories (product lines) a retailer carries.
Width of merchandise can also be referred to as Breadth of merchandise and it refers to the
number of merchandise brands in the merchandise line. For example, a retailer stocking various
brands of women’s hand bags.
References:
1. Michael Levy & Barton A Weitz, “Retailing Management”, Tata Mc Graw Hill
2. Swapna Pradhan, “Retailing Management–Text and Cases”, 4th Edn, Tata Mc Graw Hill
3. Nagpal, Sharma, “Retail Management”, Sheth Publishers