D.E.C.A. BMTD Ultimate Guide

Buying

The process of selecting and purchasing products for resale.

Merchandising

The activity of promoting the sale of goods at retail.

Vertical Integration

Performing more than one marketing channel function.

Organizational Chart

A diagram that depicts a company's corporate structure.

Full Line Discounter

Retailers that carry low-priced brands not found in department stores.

Buyer

A person who purchases and prices merchandise.

Private Company

A business owned by a small group and not publicly traded.

Direct Competing Stores

Stores that offer the same merchandise mix.

Planner

A professional projecting sales and inventory needs.

Discounter

A retailer that sells goods at prices lower than competitors.

Distributor

An intermediary who allocates merchandise to retail locations.

Specialty Store

A retail establishment that focuses on a narrow category of merchandise.

Indirect Competing Stores

Stores offering different assortments within the same merchandise type.

Product Developer

Responsible for determining new products for private label brands.

Department Store

A large store that offers a wide variety of products across different categories.

Complementary Stores

Retailers whose products stimulate each other's sales.

Public Company

A corporation that sells shares to the public through a stock exchange.

Market

A group of potential customers for a specific product or service.

Target Marketing

Responding to niche market needs with tailored marketing strategies.

Basic Goods

Essential items that remain constant throughout the seasons.

Tariff

Taxes imposed on imported goods.

Wholesaler

A business that sells goods in bulk to retailers.

Fashion Goods

Products with strong aesthetic appeal that change frequently.

Private Label

Products branded with the store's own name.

Branded Merchandise

Products identified by a specific brand name or symbol.

Brand Extension

Adding new products to an existing brand line.

Trade Show

Temporary exhibits showcasing vendor merchandise.

Advertising

Paid public communication about a product or service.

Mass Market

A large audience with similar characteristics.

Brand Loyal

Consumers who consistently prefer one brand.

Niche Market

A smaller, defined group of consumers with unique wants.

Cash Flow

The net amount of cash being transferred in and out of a business.

Gross Margin

The difference between sales revenue and the cost of goods sold.

Turnover

A measure of how often inventory is sold over a period.

Balance Sheet

A financial statement showing assets, liabilities, and equity.

Average Inventory

The mean quantity of inventory held over a specified period.

Stock to Sales Ratio

Comparison of beginning of month inventory to sales.

Sales per Square Foot

Sales volume relative to the retail space used.

LIFO

Last In, First Out inventory accounting method.

FIFO

First In, First Out inventory accounting method.

Income Statement

A financial report of a company's revenues and expenses over a period.

GMROI

Gross Margin Return on Investment; indicates inventory profitability.

Physical Inventory

The actual count and evaluation of inventory items.

Cost

The price a retailer pays to acquire goods.

FOB Factory

The retailer assumes shipping costs from the supplier's location.

Markup

The amount added to the cost to set a retail price.

Cash Discount

Reduction in the invoice price for early payment.

Promotional Pricing

Offering products at reduced prices to spur sales.

Dating

The period allowed for payment of a bill or invoice.

4-5-4 Calendar

Retail accounting calendar structuring the fiscal year.

Invoice

A detailed statement of a shipment including costs and charges.

Purchase Order

An agreement between a buyer and vendor for the supply of goods.

FOB Destination

The vendor covers shipping costs until goods reach the buyer.

Floor Ready Merchandise

Products prepped for immediate sale upon delivery.

Control

The process of monitoring and adjusting performance against goals.

Anticipation

Discounts offered for early invoice payment before the due date.

Initial Markup

The original markup percentage applied when pricing a new product.

Cumulative Discount

Discount applied to total purchases over time.

Markdown

A reduction in the selling price of a product.

Open-to-Buy

The budget amount available for new inventory purchases.

Quantity Discounts

Discounts given based on the volume of purchases.

Assortment Planning

Determining the right mix of products in terms of styles and colors.

Distribution Centre

Facilities designed to expedite and manage product shipments to retailers.

Keystoning

Doubling the cost price to determine retail price.

Vendor Partnership

Collaborative relationships with suppliers to optimize efficiency.

Maintained Markup

Difference between the cost and actual selling price.

Cooperative Advertising

Joint advertising costs shared between retailer and vendor.

Market Segmentation

Dividing a market into distinct groups with similar needs.

Fashion

A prevailing style or trend adopted by a large segment of society.

Trend

The general direction in which something is developing.

Positioning

How a product is perceived in relation to competitors.

Micromerchandising

Customizing product offerings based on local market preferences.

Fad

A short-lived trend or craze that quickly gains and loses popularity.

Independent Sales Rep

Contracted individuals who sell products for manufacturers.

Classic

Timeless fashion styles that remain popular over time.

Direct Sales Force

In-house sales personnel selling directly to retailers.

Licensing Agreement

Permission from an owner for another party to use their property.

Manufacturer

A business that produces goods using labor and raw materials.

Chain

A series of retail stores owned by a single organization.

Bankruptcy

A legal status of a person or entity that cannot repay debts.

Conglomerate

A parent company that owns multiple diverse subsidiaries.

Merger

The unification of two or more companies into one entity.

Off Price Discounters

Retailers that offer goods below standard prices due to various factors.

Centralization

Management of all merchandising functions from a central location.

Acquisition

The purchase of one company by another.

Divisional Merchandise Manager

Oversight of a merchandise division's performance and inventory.

Mall

An enclosed shopping space with multiple stores under one roof.

General Merchandise Manager

Executive role managing an entire product group.

Shopping Centre

A retail complex with shared parking and management.

Department Manager

Oversees a specific department within a retail establishment.

Store Manager

Responsible for a retail store's operations and sales.

Category Killer

A store with a vast selection in a particular category, dominating the market.

Manufacturers Outlet

Discount outlet selling surplus or irregular merchandise.