Wednesday
May272015

Account executive

An account executive is the individual responsible for selling a manufacturer's or a brand's line to retailers.  Negotiating the terms of sale, showing product and business management for his/her retailers are their primary responsibilities.

Wednesday
May272015

Advance Shipping Notice

A computerized notification sent from the shipper to the retailer that indicates when a particular order will be shipped.  It includes details like PO number, and expected receipt/delivery date, carton count, etc. 

Wednesday
May272015

Advertising allowance

Often referred to as marketing co-op or promotional allowance, an advertising allowance is a monetary contribution made to support the retailer’s marketing or advertising expenses. 

The allowance or co-op amount is commonly determined by a contribution amount based on a retailer’s purchases.  A percentage of a retailer’s total purchases (in dollars or other currency) is the most common method of calculating. 

A manufacturer supplying a large retailer who may not participate in collaborative of branded marketing may also give an allowance based on the volume of units purchased.  For example $0.10 for each unit purchased.

Thursday
Aug272015

Allowance

Allowances come in two forms: for the customer or from the supplier. Generally, allowances are a discount or ‘adjustment’. An allowance is given to the customer in the form of a discount off the selling price (i.e. for damaged merchandise, etc.). An allowance is given by the supplier to the retailer for a variety of things: late delivery, marketing, defective merchandise, etc. 

Wednesday
May272015

Anchoring

Anchoring or focalism 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. 

Wednesday
May272015

Anniversary

In the retail industry, anniversary is a verb. It indicates to repeat, or do the same thing as last year. For example, to anniversary last year's promotional cadence means to run the same program at the same time as last year. If you were to anniversary your sales in a particular brand, it indicates you expect that plan to achieve the same sales dollars as last year. 

Wednesday
May272015

Average

Average is the result obtained by adding together several quantities and then dividing this total by the number of quantities.  Average indicates the usual or standard level of something.  


Wednesday
May272015

Average inventory

Also referred to as "average stock", average inventory is the typical amount of stock that is held in inventory for a specific period of time.  Most commonly considered for a full season (six months) or a year.  

Wednesday
May272015

Average retail

The average retail figure is calculated taking into account a pre-season (or regular-price) retails. It is often used as a benchmark figure in the industry:  

  • Brand managers to communicate their positioning in the marketplace
  • Sourcing and design professionals, to indicate what the end retail of a garment should be
  • Buyers to determine if their order/assortment is in-line with the retailer's strategy
Wednesday
May272015

Average sell-price

The average price at which a group of merchandise is sold at. Unlike average retail price, which is taken pre-selling season, average sell price considers markdowns, discounts, and other price adjustments that occur through the selling of goods. 

Wednesday
May272015

Beginning of month inventory

Beginning of month inventory is the stock-value on hand, in dollars, at the start of each month. 

Thursday
Jan282016

Benchmark

A standard or point of reference against which things may be compared or assessed.

Wednesday
May272015

Benchmarking

To evaluate or compare something against a standard. Common ways to benchmark a business include, but are not limited to:

  • against last year
  • against plan
  • against the total business
  • against industry
  • against another comparable business
Wednesday
May272015

Black Friday

"(In the US) the day after Thanksgiving, noted as the first day of traditional Christmas shopping, during which crowds of consumers are drawn to special offers by retailers." -oxforddictionaries.com

Black Friday isn't classed as a holiday but is said to be the busiest shopping day in the US since 2005.

Wednesday
May272015

Bottom-up planning

Bottom-up refers to fundamental analysis, review, or planning that begins at the lowest level.  In planning, increases planned at the bottom level are then added to arrive at a total increase at the top level.  

Wednesday
May272015

Broken sizes

A size range is considered "broken" when a retailer is out of stock in key sizes, and no longer has a complete range to satisfy most of their customers. 

Wednesday
May272015

Buy now, wear now

‘Buy now, wear now’ is an apparel merchandise concept that describes a consumer desire to purchase product that can be immediately used. It is often used to describe product for transitional deliveries, where the climate may not match the seasonality of product being delivered. 

 

For example, spring begins to arrive on-floor in February. In the Northern hemisphere, most cities are still experiencing winter weather at this time.  In this case, ‘buy now, wear now’ may describe spring sweaters (sweaters being the weather-appropriate commodity) that are delivered in February or March.

Wednesday
May272015

Comparable store sales

Also referred to as 'same store sales' or 'comp sales', comparable store sales are the total sales only for stores that have been open for a full year, this year and last year.

Wednesday
May272015

Consumer packaged goods

In general, this refers to things that get used up and have to be replaced frequently, such as food and beverages, footwear and apparel, tobacco and cleaning products.

Wednesday
May272015

Cost of goods sold

Expenses associated with the actual sale of the merchandise, which include the cost of the stock (inventory or purchases), duty & freight, cash discount, workroom expenses, etc.

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