CMV (COGS): Cost of goods sold.
Sell In: This is a sale by the manufacturer that makes products and services available to the channel, distributor, or retailer. It is a type of negotiation in which the product / services are offered to the intermediary, so that they make the sale to the end customer. This is known as B2B, an acronym for business to business, which refers to companies that sell to the final consumer.
Sell Out: Linked to sell in, this is the next step of the sale: a delivery to the end customer. Also known as B2C, an acronym for business to consumer, which refers to companies that sell to customers.
Same Store Sale: This measures how much sales have increased or decreased by comparing to the same stores in the previous time period. Please note that this is the same as store sales. So, sales in new stores are not counted. This indicator is important because it shows productivity gains within the company.
Ship From Store: This is a service process that transforms the physical store into a distribution hub that uses local stock to fulfill online orders. When the customer places an order online, the order is processed, and then directed to the distribution center. Therefore, the customer can choose to receive their package at home, or pick up the product at a store closer to their current location.
Pick Up In Store: This is a service process in which shopkeepers use the stock of physical stores to fulfill online orders. Instead of distribution centers fulfilling the orders, the stores themselves act as a source of inventory.
Markdown: A term widely used by North American retailers and used by many national companies. However, the best-known term in Brazil is still the markup. But what is the difference between the two? Markup is a margin on cost, whereas markdown is a margin on sales. Profit, as we already know, is always calculated by sales value. There is never a profit on cost, since the use of markups will not allow us to find the sales tax value, operating cost, and mainly, the profit.
Omnichannel: This term comes from the union of the Latin word “omni” which means “all,” along with the English word “channel.” In this context, it would be a sales channel, or a very literal translation: present on all channels. An omnichannel retail company is one that operates on all possible sales channels: physical stores, eCommerce platforms, social media, mobile apps, temporary stores, etc. With the widespread use of smartphones, another possible interpretation for omnichannel would be “I channel.” This means that customers with mobile devices become the channel itself, as we see in the definition of seamless below.
NPS – Net Promoter Score: A metric for customer loyalty and satisfaction with the company.
Retailtainment: The word Retailtainment comes from the union of two words in English: retail and entertainment. In other words, it means retail with entertainment. This is a customer attraction technique that has been used for many years. It has gained a lot of strength in recent years due to the intensification of competition within physical retail, mainly with eCommerce. The longer customers stay inside the store, the greater the chances are for purchase.
Seamless: This definition, when applied to the retail context, is more comprehensive and has a direct relationship with multiple channels or omnichannels. A seamless operation is one where the customer navigates and transacts on all the retailer’s channels in an intuitive way without any type of barrier or difficulty. For example: if you make a purchase on the website and opt for pick-up at the physical store; if you make a purchase on the website and exchange the product in store or at a pop-up shop; or if you make the purchase at the physical store and receives technical support by chat; and so on.
SKU: SKU is the acronym in English for “Stock Keeping Unit.” In retail, the SKU is the “product identity number.” In other words, this unique identifier code is used for inventory control. SKU codes are used to identify exactly which product was sold, delivered, or exchanged. It is the reference number for each item that enables items to be distinguished from others. SKUs must have all product specifications, such as dimensions, weight, color, etc.