Key Retail Terms Overview

Study Notes

Key Retail Terms

AUC (Average Unit Cost): Represents the cost incurred for an item; can be calculated for individual items or an entire class of products.
AUR (Average Unit Retail): The price customers pay for an item after any applicable discounts; applicable for single or multiple items.
APS (Average Per Store): Measures unit sales per store over a week; serves as a performance benchmark against pre-season plans and other products.
BOP (Beginning of Period): An inventory metric indicating the quantity owned at the start of key periods (quarterly and monthly) assessed in both units and cost.
Cost Sales: The total costs (AUC) accumulated for every unit sold in a specific time period, representing the total expenditure for sold inventory.
Cost Inventory: Reflects the total amount invested in the inventory currently held, assessing potential liabilities.
Discount Rate (DR%): A comparison of the customer’s paid price (AUR) against the original price (AIR) for an item.
EOP (End of Period): An inventory measure taken at the conclusion of a specific timeframe, transitioning into the BOP for the following period.
GM$ (Gross Margin $): Displays profit earned determined by the difference between AUR and AUC, or between Retail Sales and Cost Sales, exclusive of any operational costs like SGA.
GM% (Gross Margin %): Indicates the percentage of Retail Sales that constitutes the profit.
Receipts: Documents unit and cost inventories that have not yet reached distribution centers or have been recorded from past deliveries.
Retail Sales: Total revenue generated within a specific timeframe calculated by the number of units sold multiplied by AUR.
AIR (Average Initial Retail): The initial price set on an item before any discounts are considered.
Unit Sales: Denotes the number of individual items sold over a designated timeframe.
Unit Inventory: The total quantity of units currently in possession.
LY & LLY: Abbreviations for "Last Year" and "Last Last Year," used for comparative analysis.
OP & WP: Acronyms for "Original Plan" and "Working Plan," representing different stages of strategic planning.
CC: Stands for "Color Choice" or "Customer Choice," reflecting preferences in inventory.
Committed Inventory: Refers to inventory that is currently in transit or has been received in-store.
Available Inventory: Calculated by adding CEC (Current Inventory Count), in-transit goods, and in-store products.
GMROI (Gross Margin Return on Investment): A ratio used to assess profitability against inventory investment, indicating the effectiveness of inventory management. High GMROI signifies favorable gross margin and inventory cost relationships.

Description

This quiz covers essential retail terminology essential for understanding inventory management and sales metrics. Explore concepts like Average Unit Cost, Average Per Store sales, and inventory valuation metrics to enhance your retail expertise.