Retail Management Chapter 2
Franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor.
Category Killer/Specialist
A discount retailer that offers a narrow but deep assortment of merchandise in a category and thus dominates the category from the customers' perspective. Also called a category specialist.
Discount Store
A general merchandise retailer that offers a wide variety of merchandise, limited service, and low prices.
Department Store
A retailer that carries a wide variety and deep assortment, offers considerable customer services, and is organized into separate departments for displaying merchandise.
Warehouse Club
A retailer that offers a limited assortment of food and general merchandise with little service and low prices to ultimate consumers and small businesses.
Off-price Retailer
A retailer that offers an inconsistent assortment of brand-name, fashion-oriented soft goods at low prices.
Conventional Supermarket
A self-service food store that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise.
Convenience Store
A store that provides a limited variety and assortment of merchandise at a convenient location in a 2,000- to 3,000-square-foot store with speedy checkout.
Specialty Store
A type of store concentrating on a limited number of complementary merchandise categories and providing a high level of service.
Wholesale-sponsored voluntary cooperative group
An organization operated by a wholesaler offering a merchandising program to small, independent retailers on a voluntary basis.
North American Industry Classification System (NAICS)
Classification of retail firms into a hierarchical set of six-digit codes based on the types of products and services they produce and sell.
Hypermarket
Large (100,000-300,000 square feet) combination food (60-70 percent) and general merchandise (30-40 percent) retailer.
Supercenter
Large store (150,000 to 220,000 square feet) combining a discount store with a supermarket.
Full-line Discount Store
Retailers that offer a broad variety of merchandise, limited service, and low prices.
Value Retailers
Small, full-line discount stores that offer a limited merchandise assortment at very low prices
Depth of Merchandise/Assortment
The number of SKUs within a merchandise category.
Breadth of Merchandise/Variety
The number of different merchandise categories within a store or department.
Stock-Keeping Unit (SKU)
The smallest unit available for keeping inventory control. In soft goods merchandise, an SKU usually means a size, color, and style.
Supermarket
a large, self-service retail food store offering groceries, meat, and produce, as well as some nonfood items, such as health and beauty aids and general merchandise.
