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Assortment / Range A selection of products that are chosen based on a number of attributes (including
consumer need, retailer strategy) that maximises efficiency and commercial return within a
category or store.
Base Depth The physical distance (usually expressed in mm) between the back and front of the base
Base Shelf The lowest shelf of a fixture.
Base Sales / Baseline Sales Those sales of a product that would have occurred had there been no promotional or
Blocking The grouping of products together within a fixture to produce a clearer display and reduce
consumer confusion. Products can be blocked either horizontally or vertically within a
Brand Blocking A group of products blocked by brand. E.g. Siting all of Campbell's Condensed Soups
Brand Cannibalization Switching of sales within a brand. E.g. consumers buying 375g Kellogg's Corn Flakes
instead of 250g.
Brand Loyalty Defined as a measure of the expenditure on one brand as a proportion of expenditure by a
household on all brands within a category or sub category.
Case Size The number of products in an outer case.
Category Products or services grouped together to reflect consumer usage or purchase occasion. For
example ‘Canned Vegetables’.
Category Decision Tree Purchase Decision Hierarchy The order of priority in which shoppers make their purchasing
decisions. The hierarchy is usually described like a family tree and details the various product
attributes (such as price, flavour, size, brand etc).
Category Management The strategic management of product groups through trade partnerships, which aims to
maximize sales and profits by satisfying consumer and shopper needs.
Category Strategy A long term plan of action designed to achieve a particular goal or set of goals or objectives.
Category Tactic A series of activities deployed to achieve a strategy and objectives.
Cluster A group (consumers, stores, locations) that identifies "like" characteristics or attributes.
This can be targeted at cluster groups to better meet consumer needs. Stores can be
clustered and managed depending on their catchment area.
Color Blocking Merchandising a group of products by the product color or packaging color.
Consumer The end user of a product. The consumer is not necessarily the same as the shopper, who is
the person who buys the product or service. The term customer is often used (by retailers)
when referring to the consumer.
Consumer Demand / Sales The average daily sales of a product.
Core Range Products that form the "must stock" range within a store or category. These products offer
what is regarded as the "minimum" choice and usually include key brands.
Coverage / Market Coverage A measurement of range - the percentage in either value or volume terms that a given
retailer's range covers within a market. For example, retailer X's range accounts for 35% of
the complete market's value compared to retailer Y's range accounting for 25%.
Cross Merchandising The display of a product in a different category to its usual location, due to an associated
relationship (e.g. can openers within the canned food section). Cross merchandising
assumes there is an element of lateral thinking and shopper logic to the purchase.
Days on Hand / Days Stock The average inventory (in units) divided by the average daily movement of the unit.
Depth (of range) Refers to the number of variants/sizes of a product within a range. A deep range may include
a large number of product sizes within the same product. Finite in-store shelf space usually
necessitates a trade off between ‘depth of range’ versus ‘width of range’.
DPC-Direct Product Cost A method of assigning all costs of a particular product (manufacturing, distribution,
stock holding, handling, store displays etc,) directly to that product.
DPP-Direct Product Profitability A means of defining the actual profit achieved by a retailer or distributor from an individual
product, having taken into consideration direct product costs (see DPC).
Direct Store Delivery A.k.a DSD. The manufacturer delivers products directly to the retail store.
Distribution This can be measured as the number of stores that a product is stocked in, or based on total
volume sales. The level of distribution can be classified in a number of ways although is
usually reported as a %ACV, or less frequently the % of stores within a specific retailer.
Eye Level The predominant part of the fixture that shoppers look at when purchasing. Research has
shown that when a shopper approaches a fixture, natural vision is limited and there is a
greater emphasis aimed at eye level. Eye level can change depending on the length of the
Facing The physical (linear) space that a single product occupies.
Facings Deep The number of units placed from front to back in a single position on a fixture.
Frequency of Purchase How often a product or category is purchased by consumers over a given period of time.
FSI-Free standing insert Typically a coupon booklet is inserted into the local newspaper, checkout
dispensers: On checkout the customer is given a coupon based on products purchased. It
can also be a dispenser attached to the shelf near the product to incentivize the customer
thus driving impulse buys & trial
Geodemographic Data Information which matches geography with consumer demographics (including lifestyle, age,
income, social class etc.). Census data is matched with postcodes to produce profiles or
classifications of consumers.
Gondola The physical unit that products are displayed on.
Gondola End The selling space that is located at the end of an aisle. Due to the increased consumer flow
around gondola ends, they are often used for promotional or new product display.
Horizontal Blocking The grouping of products horizontally along a shelf for example all the products of a certain
Horizontal Facings The number of horizontal facings of product on a shelf.
Horizontal Space The horizontal space taken up by products. It usually refers to a particular brand or category
Hot Spot A position on a shelf or display that generates increased interest, or sales of a product.
Incremental Sales The additional sales of a product that have happened directly as a result of promotional or
marketing activity. Sales over and above Base Sales.
Inventory Value The monetary value of stock available.
Instant redeemable coupon A.k.a (IRC). Typically a coupon attached to the product that is instantly redeemable at the
check out register.
Key Performance Indicators A.k.a (KPI). Measures that are deemed essential in monitoring the category for
example volume sales, gross margin.
Linear Foot The literal space of one foot of shelving. Often used to compare the space taken up by a
particular segment or brand.
Loyalty Consumer's allegiance to a product, brand, store or image. Loyalty can be measured by the
proportion of the total spending made by shoppers (across all outlets) that they spend in the
Merchandising Space Planning The planning of space at a micro level (category and product). Merchandising involves the
allocation of shelf space and physical layout of product within a specific category or gondola.
Optimum Shelf Capacity Calculating the amount of stock to hold on the shelf (or fixture) to meet consumer demand,
whilst minimizing stock levels.
Out of Stock A.k.a (OOS). In demand management the term usually refers to when a product is
unavailable at the shelf. (As opposed to supply chain terminology where it can refer to any
given point in the supply chain e.g. supplier distribution centre, retailer distribution centre,
Overhang The distance that products can hang over the sides of a fixture.
Overlap Where products overlap on a fixture. Some space management software systems can allow
for overlap between products when merchandising them on a planogram. Used more often
for hanging products.
Pegboard A vertical board with regularly spaced holes for attaching pegs that display hanging product
on a gondola (e.g. bagged sweets).
Planogram A visual representation of the fixture layout that aids communication, planning and
replenishment of products in store. It shows the position of every product within a fixture,
shelf heights, length of fixture and fixture adjacencies.
PoS / Point of Sale This can have two meanings. The most literal is its use as reference to the physical location
where a product or service is displayed for sale (e.g. shelf, gondola end. checkout). Secondly
PoS is used in reference to communication material (e.g. of promotional offers) that is
displayed at the point of sale.
Range Change The process of changing the level of distribution of a product or range. This can cover
introduction of new lines, deletion of existing lines or the increase or decrease in the number
of stores in which a product or range is stocked. In general, range changes are usually made
during a range cycle.
Range Cycle A period in time during which a product or range can be introduced or deleted in to a store.
Regional Ranging The process of deciding which geographic region(s) a product or range should be listed in.
This can be a complex process utilizing product, sales and consumer information to aid the
Rod / Bracket Equipment used to support hanging products from a gondola (such as bagged sweets}.
Segmentation / Sub-groups The clustering of products within a category into discrete groups on the basis of consumer
need, product form, shopper behavior etc.
Shelf Depth The physical distance between the back and front of the shelf.
Shelf Elasticity The measurement of the impact on a product’s sales performance by moving its position
either vertically or horizontally within a fixture.
Shelf Talker A communication mechanic, usually in the form of a printed message or image on a
cardboard rectangle, that is used to highlight a number of messages to the consumer (e.g.
promotional offer, new product, product information etc.)
Shelving The shelf, attached to the gondola, which is used to display product.
Shopper The person who visits a store to purchase a product or service. The shopper is not
necessarily the consumer (i.e. the end user).
Shopper Mission A specific reason a shopper has gone to a particular store/outlet.
Space Elasticity The measurement of the impact on a product's sales performance by increasing or
decreasing its allocation of space within a fixture.
Space Management The allocation and control of in-store space. This can be at a macro level, such as department
(e.g. Non Food) or category (e.g. Health & Beauty). It can also be at a micro level relating to
products within a category.
SKU Stock Keeping Unit A uniquely identifiable line within a product range. A particular product may have many
variations (e.g. 10% extra free), each of which would be a unique SKU.
Sub Category A smaller subset within a category. For example, Coffee within the Hot Drinks category.
Traffic Flow / Shopper Flow The direction that a shopper walks around the store, often used to aid merchandising
decisions (e.g. which product should be ‘first in flow’).
Vertical Blocking The grouping of products in a vertical line across a number of shelves.
Vertical Facings The number of facings of a product stacked on top of one another.
Weight of Purchase A statistical measure of how much of a product is purchased by shoppers over a given period
Width (of range) Refers to the variety of products and brands within a range. Finite in-store shelf space usually
necessitates a trade off between ‘width of range’ versus ‘depth of range’.