Fundamentals & Core Concepts Flashcards

Which retail metric measures the percentage of store visitors who make a purchase?

Answer: Conversion rate

Conversion rate is calculated as the number of transactions divided by the number of visitors to the store.

In retail analytics, 'dead stock' refers to inventory that:

Answer: Has not sold within a defined period and is unlikely to sell

Dead stock (also called obsolete inventory) ties up capital and shelf space without generating revenue.

What does the term 'planogram' refer to in retail operations?

Answer: A visual diagram specifying product placement on shelves

A planogram is a schematic drawing that details how and where products should be placed on retail shelves to maximize sales.

The 'halo effect' in retail analytics describes a situation where:

Answer: A promoted item drives incremental sales of related non-promoted items

The halo effect occurs when promoting one product positively impacts sales of complementary or adjacent products.

Which of the following best describes 'omnichannel retailing'?

Answer: Integrating multiple sales channels to deliver a seamless customer experience

Omnichannel retailing integrates physical stores, e-commerce, mobile, and other channels so customers experience a unified brand journey.

A retailer's 'shrinkage' most commonly results from which combination of causes?

Answer: Employee theft, shoplifting, vendor fraud, and administrative errors

Retail shrinkage is the loss of inventory due to theft (internal and external), vendor fraud, and paperwork errors.

When analysts refer to a retailer's 'assortment breadth,' they mean:

Answer: The total number of distinct product categories carried

Assortment breadth refers to the number of different product categories or lines a retailer offers, as opposed to depth which is the number of options within a category.