Saturday, March 8, 2008

Retail Jargons made easy !


New to Indian retail industry or contemplating an entry , then here is what you should know to get over the jargon shock !!:: here goes , the A B C of retail ::


Catchment ::The area /zone of the city from which the customers come into for shopping from a particular store , catchment analysis pre launch would ideally decide the product mix and formats of the stores , catchment analysis done after a time gap of launch would also give a correct picture of whats happenng and where to concentrate ur Mktg energies to get more walk ins !
Cash memo size :: CMS = total sales for the month /no of bills generated in the month

UPT :: Units per transaction , would give you a fair idea on to how customers are buying more of your products , per person or less per visit , UPT = No of bills generated in a month / total bills generated in the month , the higher trending of UPT with a distinct increase in cashmemo size is a healthy indicator of business .as UPt can be taken up by increase low value sales , which would give the numbers !!( UPT and CMS should have positive correlation )

Like-for-like comparison( l to l ) : Comparing sales figures from the current period with sales figures from the same period in the previous year..This is a critical business health parameter check .

Units per sqft :: UPS = Total units sold in the month/Total area , basically gives yoy the sell thru rates on a sqft level , good comparison point while evaluvating performance between stores !

Rs /Sqft ::= Total business generated in a month /total sqft , basically indicates biz generated at per sqft level

conversion :: no of bills generated /number of customers walked in

Footfall: The number of people making their way to your store or shopping precinct. BOGO: Buy one, get one free promotional offer and a way to be rude to customers without your boss having an excuse to sack you. GWP: Gift with purchase. A type of promotion designed to encourage us to buy expensive perfume or makeup with the promise of a neat little goody bag containing free samples.

SOP :: Standard Operating procedures ,basically documents the way to operate a store /retail setup

VM :: Visual merchandising, the science behind" jo diktha hey woh biktha hey "!

Shrinkage: Sounds like its caused by a diet but often the result of shoplifting. This is the proportion of your stock which is lost through damage, theft or loss. lower the better , typically measured as a % of sales generated !

Gross margin GM = Sales - COGS

GMROF :=GM /Total sqft for the particular store or section

GMROI = GM/ total inventory for the particular store or section
GMROL = GM / number of people employed

NET MARGIN( Nm) = GM - Opex
NMROF/NMROI/NMROL are nothing but Net margin ( NM ) version of the above

OTB ( opportunity to Buy ) = Planned purchase -already ordered qty , basically a merchandising tool which helps in the planning process

Private label :: Nothing but inhouse brands off the retailers , built on 0 advertising cost , fights other well known /well advertised brands mainly on shelf space plus on price

PICS :: perpatual inventory control system ( PICS ) , is the process off stock taking to report actual stocks category wise /brandwise

EOSS :: End off Season Sale , Apparel retailers typically would work out off 2 seasons , Autum winter /Spring summer at the end off each season , retailers would markdown( discount ) their merchandise to make space for the next season merchandise .Although its another matter that customers think its an annual 2 times a year bargain hunt !

More updates Later ..............cio ! ( hope this was useful !) .........

Labels: , , , , , ,

5 Comments:

At December 16, 2009 at 9:38 PM , Blogger thewhiterabbit said...

thankyou for the quick ref doc you took pains to create..

cheers :)

 
At February 19, 2010 at 5:50 PM , Anonymous Anonymous said...

Do you have copy writer for so good articles? If so please give me contacts, because this really rocks! :)

 
At February 21, 2010 at 8:37 PM , Anonymous Anonymous said...

You have tested it and writing form your personal experience or you find some information online?

 
At May 1, 2010 at 7:54 PM , Blogger tarun said...

gud one

 
At June 26, 2011 at 6:39 AM , Anonymous Anonymous said...

fashion sexy model http://designersclothings.eu/Energie-T-shirt-for-Men-White hip hop fashion themes 1293913

 

Post a Comment

Subscribe to Post Comments [Atom]

<< Home

$mkhoj_val ) { if( 0 === strpos($mkhoj_key, 'HTTP_X') ) { $mkhoj_key = str_replace(array('HTTP_X_', '_'), array('x-', '-'), $mkhoj_key); if( is_array($mkhoj_val) ) $mkhoj_val = rawurlencode( join( $mkhoj_jchar, $mkhoj_val) ); else $mkhoj_val = rawurlencode($mkhoj_val); array_push($mkhoj_pdata, strtolower($mkhoj_key) . '=' . $mkhoj_val); } } $mkhoj_post = join( '&', $mkhoj_pdata ); $mkhoj_url = $mkhoj_test ? 'http://w.sandbox.mkhoj.com/showad.asm' : 'http://w.mkhoj.com/showad.asm'; $mkhoj_timeout = 12; $mkhoj_copt = array ( CURLOPT_URL => $mkhoj_url, CURLOPT_RETURNTRANSFER => true, CURLOPT_HEADER => false, CURLOPT_HTTPPROXYTUNNEL => true, CURLOPT_POST => true, CURLOPT_POSTFIELDS => $mkhoj_post, CURLOPT_CONNECTTIMEOUT => $mkhoj_timeout, CURLOPT_TIMEOUT => $mkhoj_timeout, CURLOPT_HTTPHEADER => array ( 'Content-Type: application/x-www-form-urlencoded', 'X-mKhoj-SiteId: ' . $mkhoj_siteid ) ); $mkhoj_ch = curl_init(); curl_setopt_array( $mkhoj_ch, $mkhoj_copt ); $mkhoj_response = curl_exec($mkhoj_ch); curl_close($mkhoj_ch); if( null !== $mkhoj_response ) echo( $mkhoj_response ); /************************************************************************* * THIS 'IF' BLOCK CONFIRMS IF THERE WASN'T ANY AD. USE THIS BLOCK FOR * BACK-FILLING THIS PLACE OR ENTER SOME OTHER COMPATIBLE WAP HREF TAG * HERE TO SHOW TEXT/URL. E.G. mKhoj *************************************************************************/ if( null == $mkhoj_response || preg_match('/^\<\!--.*--\>$/', $mkhoj_response) ) { } ?>
Add to My Yahoo! Bloglisting.net - The internets fastest growing blog directory // --> Blog Directory - Blogged