Most Common Retail Abbreviations & Acronyms
Most Common Retail Abbreviations & Acronyms

KPI (Key Performance Indicator) in Retail

KPI stands for Key Performance Indicator. In retail, KPIs are like your dashboard gauges, telling you how your store is performing in key areas. They help you track progress towards your goals and identify areas for improvement.

Here are some common retail KPIs:

  • Sales per square foot: This measures how much revenue you generate for each unit of floor space. Higher numbers indicate better space utilization.
  • Conversion rate: This shows the percentage of visitors who make a purchase. A higher conversion rate means you're effectively turning browsers into buyers.
  • Average order value: This is the average amount spent per customer order. Increasing this value can boost your overall revenue.
  • Customer satisfaction: This measures how happy your customers are with their experience. Tracking feedback is crucial for building loyalty and repeat business.
  • Inventory turnover: This shows how quickly you're selling through your stock. A healthy turnover rate ensures you're not holding onto unsold merchandise for too long.

SKU (Stock-Keeping Unit) in Retail

An SKU, or Stock Keeping Unit, is your product's unique identifier in the retail world. It's like the fingerprint of your merchandise, allowing you to track inventory, manage orders, and optimize operations.

Think of it as a store detective in code form. Each item, whether a blue t-shirt or a red wagon, gets its own alphanumeric SKU – usually 8-10 characters long – that tells its story:

  • Brand: The first few digits might represent the manufacturer or supplier.
  • Product: Letters or numbers could indicate the item type (shirt, wagon).
  • Variations: Size, color, or other defining features might be encoded within the code.

For example, "BLT-SHIRT-M-BLUE" could identify a medium-sized, blue t-shirt from "Blue Threads" clothing.

 

MBQ Full Form in Retail

In retail, MBQ stands for Minimum Base Quantity. It is the minimum number of units of a specific product that a retailer must keep in stock at all times. MBQs are used to ensure that retailers have enough inventory to meet customer demand, while also avoiding overstocking and waste.

MBQs are typically set based on a number of factors, including:

  • Sales history: The retailer's historical sales of the product can help to determine how much inventory is needed to meet demand.
  • Lead time: The time it takes for the retailer to receive new inventory from the supplier can also be a factor in setting MBQs.
  • Cost of goods sold: The retailer's cost of goods sold can also impact MBQs. Retailers may want to avoid having too much inventory on hand, as this can lead to higher carrying costs.

MBQs can be set at the product level, the department level, or the store level. For example, a retailer may set a MBQ of 100 units for a popular product like a new video game, but only 50 units for a less popular product like a new type of coffee maker.

 

FMCG Full Form in Retail

In retail, FMCG stands for Fast-Moving Consumer Goods. These are everyday items that fly off the shelves quickly, usually at relatively low prices. Think:

  • Food and beverages: Bread, milk, soda, snacks, coffee
  • Toiletries and cosmetics: Shampoo, soap, toothpaste, makeup
  • Household supplies: Cleaning products, paper towels, trash bags
  • Over-the-counter medications: Aspirin, pain relievers

FMCGs are the workhorses of retail, constantly churning through the sales cycle. They often have high volume sales but low profit margins, so they rely on mass appeal and effective distribution. Think about your local supermarket aisles crammed with these familiar faces!

CDIT Full Form in Retail

CDIT can have two main meanings depending on the context, here is an explanation of both contexts:

1. Consumer Durables and Information Technology:

In the retail world, CDIT commonly refers to Consumer Durables and Information Technology. This broad category encompasses a wide range of products, including:

  • Electronics: TVs, refrigerators, washing machines, laptops, smartphones, tablets
  • Home appliances: Air conditioners, vacuum cleaners, ovens, cooktops
  • Furniture: Sofas, beds, tables, chairs
  • Sporting goods: Bikes, fitness equipment, sporting apparel

These products tend to be:

  • Durable: They are meant to last for several years.
  • High-ticket: They have a relatively high price point compared to everyday items.
  • Technology-oriented: They often incorporate advanced technology features.

The CDIT sector is a significant part of the retail landscape, and its growth is driven by factors like rising disposable incomes, increasing urbanization, and technological advancements.

2. Center for Development and Implementation of Technologies (India):

If you're dealing with Indian retail specifically, CDIT might also stand for the Center for Development and Implementation of Technologies (CDIT). This government agency falls under the Ministry of Commerce and Industry and focuses on:

  • Developing and promoting technological innovations for the retail sector.
  • Facilitating the adoption of digital technologies by retailers.
  • Providing training and support to retailers in using technology to improve their operations.

So, the meaning of CDIT in retail depends on the context. If you're unsure, it's always best to ask for clarification to avoid any confusion!

GRN Full Form in Retail:

In retail, it stands for Goods Received Note.

Think of it as the official handshake and documentation between you (the buyer) and your supplier. It's like a birth certificate for your inventory, proving the goods you ordered have arrived safely and correctly.

Here's what a GRN does:

  • Confirms delivery: It acknowledges that the supplier has delivered the goods you ordered, as per the purchase order.
  • Verifies product details: It specifies the type, quantity, and condition of the goods received. This helps avoid discrepancies and protects against receiving the wrong items or damaged goods.
  • Updates inventory: It forms the basis for updating your stock levels, ensuring your records are accurate and reflecting the physical goods you have on hand.
  • Facilitates payments: The GRN is often attached to the supplier's invoice, serving as proof of delivery and authorizing payment. This smooths out the financial process and avoids payment disputes.
  • Improves efficiency: It streamlines receiving and stock control processes, saving time and reducing errors.

Overall, GRNs are crucial for maintaining inventory accuracy, ensuring smooth supplier relationships, and preventing financial headaches. They're the silent heroes behind the scenes of a well-run retail operation.

SOH Full Form in Retail

In the world of retail, SOH, or Stock on Hand, is your inventory's current state of being. It's like a real-time snapshot of all the goods you have available at any given moment. Think of it as the answer to the question: "What do I have in stock right now?"

SOH can be viewed at different levels:

  • Total Inventory: The overall quantity of all your merchandise across all locations.
  • Product Level: The specific number of units of each individual product you have.
  • Location Specific: The inventory levels at each store, warehouse, or distribution center.

UPT Full Form in Retail

In retail, UPT stands for Units Per Transaction. It is a metric used to measure the average number of items a customer purchases in a single transaction. UPT is calculated by dividing the total number of items sold by the total number of transactions.

For example, if a store sells 100 items in 10 transactions, the UPT would be 10 items per transaction.

UPT is an important metric for retailers because it can help them to understand how efficiently they are selling their products. A high UPT indicates that customers are buying more items each time they visit the store. This can lead to increased sales and profits.

Retailers can take a number of steps to increase UPT, including:

  • Focus on products that are likely to be impulse purchases.
  • Set competitive prices.
  • Offer promotions that encourage customers to buy more.
  • Merchandise products effectively.

DSD Full Form in Retail

In Retail, DSD can have 2 Possible meanings depending upon the context:

1. Direct Store Delivery (DSD):

Imagine a streamlined process where manufacturers bypass the retailer's central warehouse and deliver goods straight to individual stores. That's DSD in a nutshell! It's like a shortcut in the supply chain, saving time and potentially reducing costs.

Here's how DSD works:

  • Manufacturers manage deliveries: They handle transportation and stocking shelves in stores, often using their own dedicated sales force and delivery vehicles.
  • Faster restocking: Products reach stores quicker, minimizing out-of-stock situations and keeping shelves full.
  • Improved product control: Manufacturers have more control over product presentation and handling, ensuring optimal shelf space and freshness.
  • Data-driven decisions: Real-time sales data from stores helps manufacturers adjust production and deliveries based on actual demand.

DSD is typically used for:

  • Perishable goods: Fresh produce, dairy, and baked goods benefit from quicker deliveries to maintain quality and freshness.
  • High-demand products: Popular items like beverages and snacks can be replenished efficiently to meet customer needs.
  • Specialized products: Items requiring specific handling or knowledge, like cosmetics or electronics, can be delivered with dedicated expertise.

2. Demand Shaping Diagram (DSD):

This meaning of DSD takes us into the realm of marketing and sales forecasting. A DSD is a visual tool used to map out and analyze the factors influencing customer demand for a product or service.

Think of it as a roadmap for understanding what drives customers to buy, helping businesses:

  • Identify key demand drivers: Factors like seasonality, promotions, competitor activity, and economic trends are analyzed.
  • Predict future demand: Based on the identified drivers, businesses can forecast future sales patterns and adjust their operations accordingly.
  • Develop effective marketing strategies: Insights from the DSD can inform targeted promotions, pricing strategies, and product development decisions.
  • Optimize resource allocation: Understanding demand fluctuations helps businesses allocate resources efficiently, ensuring they have enough inventory and staff during peak periods.

GRDC Full Form in Retail

GRDC in Retail stands for Goods Returned to Distribution Center (DC) in retail. This refers to the process of returning merchandise from stores or customers back to the main distribution hub for further processing.

Here's a breakdown of the GRDC process:

1. Returning merchandise: This can happen for various reasons, such as:

  • Customer returns: Unsatisfied customers might return unwanted or faulty items.
  • Excess inventory: Stores might return unsold merchandise to adjust stock levels.
  • Damaged goods: Products damaged during storage, transportation, or handling might be returned for replacement or disposal.

2. Sorting and inspection: When the GRDC arrives at the distribution center, it's sorted and inspected to determine the reason for return, condition of the goods, and appropriate action.

3. Processing options: Depending on the outcome of the inspection, the GRDC can be dealt with in different ways:

  • Restockable: Items in good condition might be processed for restocking in stores.
  • Refurbished: Slightly damaged items might be repaired and resold.
  • Liquidated: Unsalvageable goods might be sold to discount stores or recycled.
  • Credited: Customers might receive refunds or replacements for returned items.

4. Documentation and tracking: Throughout the process, proper documentation and tracking are crucial to maintain inventory accuracy, manage finances, and avoid discrepancies.

lfl Full Form in Retail

LFL, in the world of retail, stands for Like-for-Like (LFL) sales. It's a key metric used to measure the growth of a retailer's sales, but with a twist! Unlike regular sales figures, LFL sales exclude the impact of changes like opening new stores or closing existing ones.

Think of it as taking a temperature check of your existing business, excluding any external factors that might skew the results. It's like comparing apples to apples, ensuring a fair and accurate assessment of your core business performance.

Here's why LFL sales are so important:|

  • Focus on core performance: They isolate the growth driven by factors like marketing, merchandising, and customer service, giving you a clear picture of how well your existing operations are performing.
  • Benchmarking against competitors: Allows you to compare your LFL growth to similar retailers, offering valuable insights into your competitive position.
  • Strategic decision-making: LFL trends can inform decisions about pricing, promotions, product mix, and store operations, helping you optimize your business for future success.

SOP Full Form in Retail

In Retail, SOP can have 2 different meanings depending upon the context:

1. Standard Operating Procedure (SOP):

In retail, an SOP is a set of instructions that outlines the best practices for completing a specific task or process. It's essentially a blueprint for ensuring consistency and efficiency across your entire operation, from opening and closing the store to handling customer returns and processing sales.

Some common examples of SOPs in retail include:

  • Opening and closing the store
  • Processing cash transactions
  • Handling customer returns
  • Stocking shelves
  • Providing customer service
  • Cleaning and maintaining the store

2. Sale of Premium (SOP):

In this context, SOP refers to the sale of a premium, which is a type of financial instrument that gives the holder the right to purchase a certain amount of an underlying asset (such as a stock or bond) at a fixed price within a specific period.

When you sell a premium, you are essentially entering into a contract with the buyer to sell them the underlying asset at the strike price on or before the expiry date. In exchange for this obligation, you receive a premium payment from the buyer.

The sale of premiums can be a complex financial strategy, and it's important to understand the risks involved before entering into any such agreement.

ASP Full Form in Retail

In Retail, ASP can have 2 different meanings depending upon the context:

1. Average Selling Price: This is the most common meaning in the context of retail. It refers to the average price at which a particular product or service is sold. To calculate ASP, you simply divide the total revenue generated from the product or service by the total number of units sold.

Here's why ASP is an important metric:

  • Tracks profitability: A higher ASP indicates higher profit margins per unit sold.
  • Compares pricing to competitors: You can benchmark your ASP against competitors to see how your pricing strategy is performing.
  • Informs pricing decisions: Understanding ASP helps you make informed decisions about setting prices for new and existing products.
  • Identifies growth opportunities: If your ASP is trending upwards, it could indicate a successful pricing strategy or increased demand for your products.

2. Apparel Selling Period: This term is more specific to the apparel and fashion industry. It refers to the timeframe during which a particular season's collection is available for sale at full price before being marked down. The length of the ASP can vary depending on the brand, retailer, and type of product.

For example, a high-end fashion brand might have a shorter ASP of a few weeks, while a mass-market retailer might have a longer ASP of several months. Understanding the ASP for different brands and retailers can help you plan your shopping accordingly.

ATV Full Form in Retail

ATV stands for Average Transaction Value. It's the average amount spent per customer order in your retail business.

Remember, a high ATV means your customers are buying more per transaction, leading to potentially higher overall revenue and profit.

Here's a quick recap of the benefits of understanding and optimizing your ATV:

  • Increased revenue: A higher ATV can directly lead to higher overall revenue, even if you have the same number of customers.
  • Improved profitability: Increased sales with the same fixed costs can significantly improve your profit margins.
  • Better resource allocation: Knowing your ATV helps you allocate resources such as staffing and marketing more effectively.
  • Data-driven decisions: You can use ATV insights to inform pricing strategies, product mix, and promotional campaigns.

MBO Full Form in Retail

MBO in retail Stands for Multi Brand Outlet.  It is a retail store that carries a wide variety of products from different brands under one roof. This can encompass anything from clothing and footwear to electronics and home goods.

Benefits for consumers:

  • One-stop shopping experience for diverse needs and preferences.
  • Can often find competitive prices and deals due to competition between brands.
  • Opportunity to compare different brands and products side-by-side.

Benefits for brands:

  • Access to a larger customer base without the need for individual stores.
  • Shared marketing and operational costs.
  • Potential for increased brand awareness and sales.

Examples: Macy's, Nordstrom Rack, DSW, and Decathlon are all popular multi-brand outlets.


SSPD Full Form in Retail

In the retail industry, SSPD stands for Sales Per Square Foot. Imagine it as a measuring tape for your store's efficiency, telling you how much revenue gets squeezed out of every square inch of your available space.

Think of it like this: you have a limited amount of real estate in your store (think square footage), and SSPD tells you how effectively you're using that precious space to generate income. The higher the SSPD, the more you're squeezing out those sales dollars for each square foot you have.

Calculating SSPD is pretty straightforward:

  1. Total Sales: Take your total sales for a specific period, like a month or a year.
  2. Total Retail Space: Measure your entire retail space in square feet, including aisles, checkout areas, storage rooms, and anything customers can wander through.
  3. Divide: Simply divide your total sales by your total retail space.

For example, if you had $10,000 in sales during a month and your store is 2,000 square feet, your SSPD would be $5 per square foot.

VM Full Form in Retail

In retail, VM stands for Visual Merchandising. It is the art of transforming your store into a captivating spectacle, where products sing their siren song and entice customers to delve deeper. It's the magic touch that turns shelves into stages, walls into canvases, and every corner into a story waiting to be told.

Here's how VM works its magic:

  • Product placement: Strategic positioning of products to highlight their features, tell a story, and guide customer flow.
  • Displays and fixtures: Creating eye-catching installations that showcase products in their best light and spark curiosity.
  • Lighting and color: Playing with the power of light and color to create ambiance, emphasize key products, and guide customers' attention.
  • Signage and props: Using well-placed signage and eye-catching props to tell product stories, highlight promotions, and add a touch of whimsy.

RTV Full Form in Retail

In Retail Context, RTV most commonly stands for Return to Vendor. This refers to the process where a retailer sends unsold, damaged, or unwanted merchandise back to the supplier or manufacturer.

Think of it as a rewind button for products that didn't quite make the cut in your store. RTVs can happen for various reasons:

  • Overstock: You ordered too much of a product and it didn't sell as expected.
  • Seasonality: Some items are trendy for a limited time and might need to be returned once the season ends.
  • Damaged goods: Products arriving with defects or getting damaged in the store can be returned for replacements or credit.
  • Warranty issues: Defective products covered under warranty would be sent back to the manufacturer for repair or replacement.

CSA  Full Form in Retail

CSA can have 2 different meanings depending upon the context:

1. Customer Service Associate:

Think of a CSA as the frontline ambassador of your brand, the friendly face and helpful voice that guides customers through their shopping journey. They're the problem solvers, the information providers, the product whisperers who turn browsers into buyers and keep loyal customers coming back for more.

Here's what a typical CSA does:

  • Greets and welcomes customers: Setting a positive tone and creating a welcoming atmosphere.
  • Answers questions and provides product information: Helping customers find what they need and understand product features.
  • Processes sales and transactions: Handling cash, cards, and other payment methods efficiently.
  • Merchandises and stocks shelves: Keeping the store organized and visually appealing.
  • Resolves customer complaints and returns: Handling issues professionally and finding solutions to ensure customer satisfaction.
  • Promotes sales and offers: Highlighting deals and enticing customers to purchase additional items.

Benefits of having great CSAs:

  • Increased customer satisfaction: Happy customers return and spend more.
  • Boosted sales: Friendly and knowledgeable service can turn browsing into buying.
  • Strong brand image: Excellent customer service reflects positively on your brand.
  • Reduced employee turnover: A positive work environment with opportunities for growth keeps good employees around.

2. Commercial Services Agreement:

CSA or Commercial Services agreement can be defined as a handshake agreement between a retailer and a service provider, outlining the terms of their collaboration.

CSA includes:

  • Scope of services: Defining the specific services the provider will offer, such as marketing, logistics, or technology solutions.
  • Term and conditions: Specifying the duration of the agreement, payment terms, and termination clauses.
  • Performance metrics: Setting expectations for service quality and measuring success based on agreed-upon criteria.
  • Confidentiality and intellectual property: Protecting sensitive information and ensuring ownership of relevant materials.

OTB Full Form in Retail

In Retail, OTB can have 2 different meanings depending upon the context:

1. Open to Buy: This is the most common meaning in the world of inventory management. Imagine OTB as your shopping budget for buying new merchandise. It represents the amount of money you have left to spend on fresh inventory after factoring in:

  • Your sales forecast: Estimating future sales helps you decide how much new stock you need.
  • Current inventory levels: You don't want to overstock, so consider what you already have on hand.
  • Markdowns and returns: Account for expected price reductions and returned items impacting your budget.
  • Planned end-of-month inventory: Aim to maintain a healthy level of stock at the end of each month.

Calculating OTB:

Planned sales + Planned markdowns + Planned end-of-month inventory - Planned beginning-of-month inventory = Open to Buy


2. Offer to Buy: In some instances, OTB can also signify an "Offer to Buy" made by a potential buyer for a retail business. This often happens during acquisition negotiations and involves details like:

  • Purchase price: The amount offered for the business.
  • Terms and conditions: Payment structure, transition period, and other stipulations.
  • Contingencies: Conditions that need to be met before the purchase becomes final.
 
Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading