Retail Terms: Must Read

accrued liabilities Liabilities that accumulate daily but are paid only at the end of a period.
activity-based costing (ABC) A financial management tool in which all major activities within a cost center are identified, calculated, and then charged to cost objects, such as stores, product categories, product lines, specific products, customers, and suppliers.
bottom-up planning When goals are set at the bottom of the organization and filter up through the operating levels.
customer returns The value of merchandise that customers return because it is damaged, doesn’t fit, and so forth.
input measure A performance measure used to assess the amount f resources or money used by the retailer to achieve outputs.
productivity measure The ratio of an output to an input determining how effectively a firm uses a resource.
retained earnings The portion of owners’ equity that has accumulated over time through profits but has not been paid out in dividends to owners.
top-down planning One side of the process of developing an overall retail strategy where goals are set at the top of the organization and filter down through the operating levels.
central business district (CBD) the traditional downtown business area of a city or town.
destination store a retail store in which the merchandise, selection, presentation, pricing, or other unique feature acts as a magnet for customers.
fashion/specialty center A shopping center that is composed mainly of upscale apparel shops, boutiques, and gift shops carrying selected fashions or unique merchandise of high quality and price.
freestanding site Fixtures and mannequins located on aisles that are designed primarily to get customers’ attention and bring them into a department.
gentrification a process in which old buildings are torn down or are restored to create new offices, housing developments, and retailers.
inner city Typically a high-density urban area consisting of apartment buildings populated primarily by ethnic groups: African Americans, Hispanics, and Asians.
kiosk A small selling space offering a limited merchandise assortment.
lifestyle center A shopping center with an outdoor traditional streetscape layout with sit-down restaurants and a conglomeration of specialty retailers.
Main Street the central business district located in the traditional shopping area of smaller towns, or a secondary business district in a suburb or within a larger city.
mall a shopping center with a pedestrian focus where customers park in outlying areas and walk to the stores.
mixed-use development (MXD) development that combines several uses in one complex-for example, shopping center, office tower, hotel, residential complex, civic center, and convention center.
outlet centers Typically features stores owned by retail chains or manufacturers that sell excess and out-of-season merchandise at reduced prices.

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