Glossary of Retail Terms

Ad sample

Sent to MMG and the Buyers who requested it so they can use it in their advertising. Ideally it will be the final approved sample when it comes to fit, fabric, handfeel, and stripe/pattern if applicable

Age

Means of tracking how long a style has been in stock. 'Age' is the number of weeks since the last receipt of a style.

Allocation

The process of determining which stores get which merchandise and how much

Assortment

The selection and variety of merchandise carried by a given department. Also, a group of similar styles to which the Product ID (PID) belongs

AUR

the 'average unit retail' (AKA out the door) of an item for a week, season or year

Best Seller

An item that sells quickly

Book Inventory

Dollar value of stock at retail shown to be on hand by a perpetual accounting system. Sales and other adjustments are deducted from the total inventory while receipts are added

Brand Values

The brand values express the Macy's, Inc. philosophy for conducting business. They are: Customers First, You Count, Teams Win, Give Back, Integrity Always, Results Matter

Buy Meeting (Market)

A meeting in which the Divisional Buyers meet at MMG to review the Private Label line and place orders for the merchandise they want to sell in the stores

Chargeback

The process of reducing what Macy's owes a vendor for agreed-upon deductions, such as merchandise returns and markdown allowances. Some chargebacks are entered through the RTV system

Competitor

Any other retailer whose merchandise is similar to that which is sold by Macy's retail divisions. All stores that are subsidiaries or divisions of Macy's are not considered competitors

Cost

Simple cost: The price per piece that the vendor charges a retailer for an item. Loaded cost: Simple cost + freight - discount

DC

Distribution Center. A service location where merchandise is physically received, processed, prepared, and sent to stores or customers

Department

Merchandising managing level. Each department can have multiple classes and subclasses. Also a three digit number which identifies related classes of merchandise

Distro

Distribution. The breakdown, by store, of an ordered style

Door

Retail slang for a single store

EDI

Electronic Data Interchange. A method of communicating information electronically from Macy's divisions to trading partners that speeds up orders and delivery and increases accuracy

Fabrication

Fabric or material from which a garment or item of merchandise is made

Family of Business

(FOB) A group of related businesses within a GMM pyramid

Fixture

A retail rack or stand used for floor-selling presentation (for example, Front 4-Wy Stand, Front T-Stand, Main Aisle-Caseline Stand)

Forecast

A three-or six-month estimate of sales, receipts, markdowns, and stock by department

Good-Better-Best

An assortment strategy designed to provide similar merchandise at distinct price points, offering a variety of quality levels to a wider customer base

Gross Margin

Profit before deducting operation expenses; usually expressed as a percentage of net sales for comparative purposes

Hangtag

A tag attached to a product with the brand name and/or descriptive information

Inventory (Physical)

Determining by actual count the merchandise and dollar value of merchandise on hand in the store, stock areas, and distribution centers, etc. at a particular point in time

Key Item

A style of merchandise that is purchased in depth to drive sales

Lead time (Inforem)

The number of days from when a purchase order is approved until the goods are in the store

Markup (MU)

Difference between cost and retail, usually expressed as a percentage of retail. Also known as mark-on or marking

Lifestyle Merchandising

Defining the Macy's customer by lifestyle preferences

Receipts

The total amount of merchandise a buyer plans to bring in for each month. A shipment of merchandise from a vendor to an Operating Division

Trend

A change in consumer buying patterns; a current style or preference. A measurement used to compare current sales performance against LY (last year) or Plan, expressed as a percentage

Open to Receive or Open to Buy

The difference between planned (budgeted) purchases and merchandise already ordered; the amount of funds available to purchase merchandise within a period of time

P.O.S. (Point of Sale)

A reference to the automated sales register system used in all stores to record sales, credit authorization data and price changes

Price Points

Retail selling prices, for example, $9.99, $19.99, $29.99, etc.

Receipts

The total amount of merchandise a buyer plans to bring in for each month. A shipment of merchandise from a vendor to an Operating Division

Season

A 6-month period on the fiscal calendar. February through July is Spring. August through January is Fall.

Sell-off

Rate at which merchandise sells based on beginning on-hand plus receipts.

Sell-through

A measure of the speed at which goods are sold, expressed as a percent.

Sourcing

Where a Private Brand or Label will have their product produced

Turn (stock turn, turnover)

Short for stockturn. The seasonal sales divided by average stock ownership. This value reflects the rate at which an entire stock ownership turns over during a season

Vendor

Manufacturer, wholesaler, or importer providing merchandise to a retailer.

Year

The merchandising fiscal year-from February through January.