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Chapter 7: Merchandising Termimology

Add-onAdditional merchandise that could be added-on to a sale and purchased by the customer
AdjacencyThe layout of the store that shows how each planogram or rack is set next to each other
Back OrderAn item or order that is presently not in stock but is being reordered and will be available at another time
Back RoomStockroom or receiving area where reserve product is stored
Back TagA printed card used to hang from a peg hook showing that a product is out of stock, the number of facings, SKU and description
BalerA 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 CodeA group of lines printed on a piece of merchandise or on a label attached to the merchandise, also known as a 'UPC Code'
BaseThe bottom flat part of each gondola section, sometimes also referred to as Shelf 1
BlitzA 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 DisplayArranging and putting together merchandise or sample products, usually from scratch
CategoryRefers to the section (set) in the store i.e. Domestics
Chain Drug StoreA pharmacy-driven outlet with a large general merchandise and HBA business. Example: Walgreen's, Eckerd's, CVS
Clearance MerchandiseMerchandise that the retailer has discontinued and cannot charge back to the manufacturer, usually seasonal and priced to sell quickly
Computerized Inventory SystemA computer program that tracks inventory and sometimes creates automated replenishment orders
Cross MerchandiseMixing merchandise from several different departments on one merchandise display; a product merchandised in more than one category
Cut-inWhen a new product is introduced, the manufacturer usually likes to cut-in the new product into the existing planogram via a Revision.
CycleA set period of time where a merchandising visit can be performed
Dead LabelAn EAS label in an inactive state where it will not alarm an EAS System
DemonstrationShowing how to complete a task. Sometimes called a demo, often used in conjunction with food sampling
Direct Store DeliveryD.S.D. is when product is shipped from the manufacturer directly to the store.
Discontinued ItemItems that are no longer being merchandised in the category
DisplayAn entire gondola side, counter, category set complete with product and point of purchase materials
Disposable LabelAn 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 GoodsItems that have been damaged or soiled
DividerUsed along with fencing to separate product on the shelves
Do-It-Yourself-StoresSome examples of DIY stores are Home Depot, Menards, Lowes
Dummy FacingsWhen 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 TableA table or bin used to display merchandise
EAS LabelAbbreviation for Electronic Article Surveillance; lightweight tags that are attached to garments prior to placing on sales floor in order to deter shoplifting
End CapA 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
FacingThe number of times a product is merchandised on the shelf or peg hook. Some better selling products have more than one facing.
Fast-Back HookA two prong hook that attaches into the pegboard
FencingAcrylic rails secured to the front of the shelf to contain product on the shelf
Fixture Accessory Shelves, Peg Hooks, etc.
FixtureA display furnishing to hold merchandise
Free Standing StoreA retail outlet that stands by itself and is not attached to a mall or shopping center
Front RunnerPlastic strips that attach to the pegs to hold the labels
GondolaA type of free-standing shelving unit where products are merchandised, usually secured to the floor
HBAAbbreviation for Health and Beauty Accessories
HBCAbbreviation for Health and Beauty Care
Hang TagManufacturer's label describing the merchandise. Also a hanging price tag used on garments and other merchandise
Hard LinesDurable merchandise that includes everything from hardware and appliances to Health and Beauty Accessories
IRCAbbreviation for Instant Redeemable Coupon or Instant Rebate Coupon
IVRInteractive Voice Response is an electronic reporting system that allows employers to gather store completions in addition to payroll information
Identifier StickerA sticker adhered to product packaging which communicates that the item is protected against theft or shoplifting
Inventory ShrinkReduction in inventory caused primarily by shoplifting and employee theft
InventoryMerchandise in-stock and currently available
J HookA 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
Kiosk1) 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
LabelContains 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 InThe 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 LabelAn 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 LeaderMerchandise sold at or below cost intended to bring customers into the store
ManufacturerProducer of products and merchandise that people buy
MappingThe process of determining locations and adjacencies of departments and merchandise inside a store
Mark DownA reduction in selling price
Mass MerchantA discount retailer that carries a wide variety of merchandise. Example: Target, Wal-Mart
MerchandisingPresenting products in their best light to generate more sales
Mystery ShopStore visit requiring merchandiser anonymity in order to evaluate customer service or gather product information in an unbiased manner; form of market research
NARMSAbbreviation for National Association for Retail Marketing Services
OOSAbbreviation for Out of Stock; item not available for sale at this time
OverheadThe shelf above a section holding overstocks or discontinued items also called Cap Shelf
OverstockAdditional stock of product that is full to capacity on the shelf or peg
POGAbbreviation for Planogram.
POPAbbreviation 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 BoardThe backing on many fixtures where hooks are inserted to display product.
Peg HookMetal or plastic hooks that fit into the pegboard to hold product.
Pegged MerchandiseProduct that is merchandised on peg hooks
Physical InventoryPhysically counting the individual items in stock at a particular date and time
PlanogramA 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 BrandA store's in-house brand
Rack JobberA wholesaler that is allowed by a store to install, stock and replenish selected items on display racks
Reserve StockMerchandise that is stored in an area inaccessible by customers
ResetA major change or revision to an existing planogram, a section, department or an entire store
RetailerAn individual or firm that sells goods and services directly to the consumer
RiserShelves above the shoppable portion of a gondola
Rotate StockStock new merchandise behind old merchandise when filling displays. Can also mean replacing old stock with new stock
RounderRound apparel rack fixture
SKUAbbreviation 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 GoodsMerchandise that has been damaged in transit or storage
SchematicLine-art drawing of the planogram, showing how many shelves or peg hooks to use.
Seasonal MerchandiseProducts that are in demand at a certain time of year, such as Christmas or Back-to-School
Secret ShopperA merchandiser who samples service or products without the knowledge of the employees and reports the findings to the manufacturer or merchandising company
Service RecoveryDealing effectively with customer complaints, problems and dissatisfaction.
Shelf ChannelThe indented front of the shelf where labels or plastic label strip holders are placed
Shelf ExtenderA 7 metal extender used to merchandise and compare a name brand product to a private label product
Shelf LabelLabel showing item placement on the shelf and description of product size, price, UPC code, ordering code, movement and date tag was printed
Shelf TalkerA small sign that points out sale, product features or price
Sky Hook PegFastback metal peg with label holder attached. Front-runner is not used
Soft linesClothing merchandise including accessories
Specialty RetailerA retail outlet that concentrates its merchandising efforts in a particular category of items within that category. Example: ToysRUs, Ace Hardware
Stock TurnoverA measure for determining how quickly merchandise is being sold
SuperStoreA larger than average supermarket or discounter. Example: Target Superstore, Kroger, Wal-Mart SuperCenter
SurgeExpanded or increased need for a reset due to a new item initiative
T-StandsBasic apparel fixtures with posts topped by cross bars
TelzonHand-held tracking unit used to order and track store inventory
Tri-Level RoundAn apparel fixture with three face-out arms
UOMAbbreviation for Unit of Measure
UPCAbbreviation for Universal Product Code
Universal Product CodeStandard 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
VendorPerson or company providing merchandise or service to a retail store
Visual MerchandisingArranging items for display. Also known as Visual Presentation
Wing DisplayA display that flanks or attaches to the side of an end cap

Congratulations! You have completed the NARMS Merchandising Proficiency Skills Training. If necessary, you may want to review chapters you felt you could do better at OR move right to taking the test.

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