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Chapter 7: Merchandising Terminology

Add-On Additional merchandise that could be added-on to a sale and purchased by the customer
Adjacency The layout of the store that shows how each planogram or rack is set next to each other
Back Order An item of order that is presently not in stock but is being reordered and will be available at another time.
Back Room Stockroom or receiving area where reserve product is stored
Baler A large cardboard compactor found in the back room
Bar Code Scanners Reads bar codes. Bar code scanners are generally classified as wands, hand-helds, etc.
Bar Code A group of lines printed on a piece of merchandise or on a label attached to the merchandise, also known as a ‘UPC Code’
Base The bottom flat part of each gondola section, sometimes also referred to as Shelf 1
Blitz A type of merchandising that denotes a rapid roll-out of a product or planogram within a geographic area. A blitz is usually coordinated with an ad date or promotional event.
Building a Display Arranging and putting together merchandise or sample products, usually from scratch
Category Refers to the section (set) in the store i.e. Domestics
Chain Drug Store A pharmacy-driven outlet with a large general merchandise and HBA business. Example: Walgreen’s, Eckerd’s, CVS
Clearance Merchandise Merchandise that the retailer has discontinued and cannot charge back to the manufacturer, usually seasonal and priced to sell quickly
Computerized Inventory System A computer program that tracks inventory and sometimes creates automated replenishment orders
Cross Merchandise Mixing merchandise from several different departments on one merchandise display; a product merchandised in more than one category

Cut-in When a new product is introduced, the manufacturer usually likes to cut-in the new product into the existing planogram via a Revision.
Cycle A set period of time where a merchandising visit can be performed
Dead Label An EAS label in an inactive state where it will not alarm an EAS System
Demonstration Showing how to complete a task. Sometimes called a demo, often used in conjunction with food sampling
Direct Store Delivery D.S.D. is when product is shipped from the manufacturer directly to the store.
Discontinued Item Items that are no longer being merchandised in the category
Display An entire gondola side, counter, category set complete with product and point of purchase materials
Disposable Label An EAS label that is attached to or inserted inside of merchandise or packaging and is not intended to be removed at the point of purchase
Distressed Goods Items that have been damaged or soiled
Divider Used along with fencing to separate product on the shelves
Do-It-Yourself-Stores Some examples of DIY stores are Home Depot, Menards, Lowes
Dummy Facings When the actual product is not in stock, another product with the same dimensions is temporarily faced backwards to ensure correct space is left on shelf
Dump Table A table or bin used to display merchandise
EAS Label Abbreviation for Electronic Article Surveillance; lightweight tags that are attached to garments prior to placing on sales floor in order to deter shoplifting
End Cap A 3 or 4 foot section located at the end of a gondola used to merchandise seasonal, temporary or promotional product. High margin items are placed on end caps to generate impulse purchases
Facing The number of times a product is merchandised on the shelf or peg hook. Some better selling products have more than one facing.
Fast-Back Hook A two prong hook that attaches into the pegboard
Fencing Acrylic rails secured to the front of the shelf to contain product on the shelf
Fixture Accessory Shelves, Peg Hooks, etc.
Fixture A display furnishing to hold merchandise
Free Standing Store A retail outlet that stands by itself and is not attached to a mall or shopping center
Front Runner Plastic strips that attach to the pegs to hold the labels
Gondola A type of free-standing shelving unit where products are merchandised, usually secured to the floor
HBA Abbreviation for Health and Beauty Accessories
HBC Abbreviation for Health and Beauty Care
Hang Tag Manufacturer’s label describing the merchandise. Also a hanging price tag used on garments and other merchandise
Hard Lines Durable merchandise that includes everything from hardware and appliances to Health and Beauty Accessories
IRC Abbreviation for Instant Redeemable Coupon or Instant Rebate Coupon
IVR Interactive Voice Response is an electronic reporting system that allows employers to gather store completions in addition to payroll information
Identification Sticker A sticker adhered to product packaging which communicates that the item is protected against theft or shoplifting
Inventory Shrink Reduction in inventory caused primarily by shoplifting and employee theft
Inventory Merchandise in-stock and currently available
J Hook A hook so called because of its J shape. Placed on a shelf used to merchandise impulse products
Just-In-Time (JIT) A replenishment system that reduces the amount of space a retailer needs for back stock. The product is reordered every time the cashier rings up a sale
Kiosk 1) A small leased area, booth or cart inside a mall or store. (2) An interactive display or terminal giving access to an Intranet or to the Internet from inside a store for ordering or checking on merchandise
Label Contains price information for the consumer. Labels are placed in the shelf channels to the left of the product or on the front runners for peg hooks
Lead In The first product a consumer sees from the main aisle. Planograms have lead in indicators to show which end of the planogram starts near the main aisle.
Live Label An EAS label in an active state which will set off the store alarm system if the merchandise is taken past an authorized check point
Loss Leader Merchandise sold at or below cost intended to bring customers into the store
Manufacturer Producer of products and merchandise that people buy
Mapping The process of determining locations and adjacencies of departments and merchandise inside a store
Mark Down A reduction in selling price
Mass Merchant A discount retailer that carries a wide variety of merchandise. Example: Target, Wal-Mart
Merchandising Presenting products in their best light to generate more sales
Mystery Shop Store visit requiring merchandiser anonymity in order to evaluate customer service or gather product information in an unbiased manner; form of market research
NARMS Abbreviation for National Association for Retail Marketing Services
OOS Abbreviation for Out of Stock; item not available for sale at this time
Overhead The shelf above a section holding overstocks or discontinued items also called Cap Shelf
Overstock Additional stock of product that is full to capacity on the shelf or peg
POG Abbreviation for Planogram.
POP Abbreviation for Point of Purchase material. Printed material that draws attention to the product on the shelf
POS Abbreviation for Point of Sale Term normally used to describe cash register systems that record transactions or the area of checkout in a retail store
Peg Board The backing on many fixtures where hooks are inserted to display product.
Peg Hook Metal or plastic hooks that fit into the pegboard to hold product.
Pegged Merchandise Product that is merchandised on peg hooks
Physical Inventory Physically counting the individual items in stock at a particular date and time
Planogram A schematic drawing of fixtures that illustrate product placement. Picture or layout plan describing where merchandise is to be placed on the fixtures. Also known as a POG
Preferred Product Shelves that are located between hip level and eye level
Private Label A store’s in-house brand
Rack Jobber A wholesaler that is allowed by a store to install, stock and replenish selected items on display racks
Reserve Stock Merchandise that is stored in an area inaccessible by customers
Reset A major change or revision to an existing planogram, a section, department or an entire store
Retailer An individual or firm that sells goods and services directly to the consumer
Riser Shelves above the shoppable portion of a gondola
Rotate Stock Stock new merchandise behind old merchandise when filling displays. Can also mean replacing old stock with new stock
Rounder Round apparel rack fixture
SKU Abbreviation for Stock Keeping Unit. Some SKU’s have more than one facing. Each SKU is associated with a different product on a planogram (POG) and is a number assigned by the retailer to keep track of the type, color and size of a product
Salvage Goods Merchandise that has been damaged in transit or storage
Schematic Line-art drawing of the planogram, showing how many shelves or peg hooks to use.
Seasonal Merchandise Products that are in demand at a certain time of year, such as Christmas or Back-to-School
Secret Shopper A merchandiser who samples service or products without the knowledge of the employees and reports the findings to the manufacturer or merchandising company
Service Recovery Dealing effectively with customer complaints, problems and dissatisfaction.
Shelf Channel The indented front of the shelf where labels or plastic label strip holders are placed
Shelf Extender A 7 metal extender used to merchandise and compare a name brand product to a private label product
Shelf Label Label showing item placement on the shelf and description of product size, price, UPC code, ordering code, movement and date tag was printed
Shelf Talker A small sign that points out sale, product features or price
Sky Hook Peg Fastback metal peg with label holder attached. Front-runner is not used
Soft Lines Clothing merchandise including accessories
Speciality Retailer A retail outlet that concentrates its merchandising efforts in a particular category of items within that category. Example: ToysRUs, Ace Hardware
Stock Turnover A measure for determining how quickly merchandise is being sold
SuperStore A larger than average supermarket or discounter. Example: Target Superstore, Kroger, Wal-Mart SuperCenter
Surge Expanded or increased need for a reset due to a new item initiative
T-Stands Basic apparel fixtures with posts topped by cross bars
Telzon Hand-held tracking unit used to order and track store inventory
Tri-Level Round An apparel fixture with three face-out arms
UOM Abbreviation for Unit of Measure
UPC Abbreviation for Universal Product Code
Universal Product Code Standard for encoding a set of lines and spaces that can be scanned and interpreted into numbers to identify a product. A sequence of numbers and bar code on the back of each product
Vendor Person or company providing merchandise or service to a retail store
Visual Merchandising Arranging items for display. Also known as Visual Presentation
Wing Display A display that flanks or attaches to the side of an end cap

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