Retail Glossary 'G H I J K L'

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Gross Margin(GM)

Gross margin is the difference between what an item cost and for what it sells.
GM= Sales-cost of goods sold

Gross Margin Return On Investment(GMROI)

A measure of inventory productivity that expresses the relationship between your total sales, the gross profit margin you earn on those sales, and the number of dollars you invest in inventory.

GMROI(%)=(Gross Profit/Total Investment)*100

Hardlines

A store department or product line primarily consisting of merchandise such as hardware, housewares, automotive, electronics, sporting goods, cosmetics etc.

Inventory

Inventory is the merchandise a retail store has on-hand. The term also refers to the act of counting, assorting and recording in-stock merchandise or supplies.

Inventory Turnover

The number of times during a given period that the average inventory on hand is sold and replaced

Inventory Turnover= Cost of goods sold / Average Inventory
Average Inventory = (Beginning Inventory + Ending Inventory)/2

Kiosk

The term kiosk,as related to retailing, refers to a small stand-alone structure used as a point of purchase. This can be either a computer or display screen used to disseminate information to customers or may be a free-standing, full-service retail location. Kiosk are often found in malls and other high-traffic locations.

Keystone

Keystone pricing is a method of marking merchandise for resell to an amount that is double the wholesale price.

Loss Leader

Merchandise sold below cost by a retailer in an effort to attract new customers or stimulate other profitable sales.

Loss Prevention

Loss prevention is the act of reducing the amount of theft and shrinkage within a business.

Layaway

Layaway is the act of taking a deposit to store merchandise for a customer to purchase at a later date.

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