University of Alabama CTD 361 Exam Review Matching Terms

turnover

# of times at which average inventory has been sold and replaced

retail price

the price retailers charge consumers for merchandise

gross margin

how much net sales remain after covering COGS and markdowns (usually represented as a %)

national label

also called designer brands. label that is owned by a manufacturer and is available at a variety of retailers (ex: nike, ralph lauren)

profit

leftover gross margin after expenses. financial gain

% of season

how much each month contributes to the season as a whole (monthly figure / total season figure)

open to buy

amount of unspent $ available to use

BOM

BEGINNING OF THE MONTH

represents $ amount of stock on hand at the start of the month

merchandising

the planning, developing, and presenting product lines for identified target markets with regard to pricing, assorting, styling, and timing

average inventory

average amount of stock on hand during a given time

markup

an increase in price

private label

owned by a department store retailer and found only in their stores (ex: I.N.C at Macy's)

stock/inventory

the amount of merchandise on hand at a specific time

compare

% give the ability to come that $ do not

receipts

$ amount of merchandise brought into stock during a given time

on order

open orders that are expected to be delivered

EOM

END OF THE MONTH

represents $ amount of stock on hand at the end of the month

retailing

the selling of goods and services to the ultimate consumer

wholesale cost

cost of merchandise. the amount the retailer pays for the merchandise

markup complement

the inverse of markup

(100%-MU%) or (1-MU%)

retail label

used by chain stores as their exclusive label in their stores; is the only label offered by the retailer (ex: H&M, Zara)

expenses

the amount of $ spent on something (operating costs, advertising, salaries, etc.)

pre-market

preparations and tasks to prepare for market

markdowns

a reduction in price

6 month plan

before a buyer can go to market to choose their merchandise, they must complete this. it is the most important step in the buying process; includes goals for sales, inventory levels, markdowns, and determines the open-to-buy or budget for the department

1. planned sales

2. planned stock

3. planned markdowns

4. planned receipts

% to total

figure that tells which areas are most or least important to a store (compares how different vendors are doing) a fraction of the whole (ex: jewelry vendor/entire department store)