Category: Merchandising

Oct

8

When our reps are hard at work in retail stores across the nation, they come across what seems like hundreds of terms and acronyms. Think you know the ins and outs of retail jargon? Check out our glossary of commonly used retail lingo below.

1. Audit: A way to ensure compliance and performance of a merchandising display. Tasks of completing an audit include ensuring products are in the right place, the display is set to POG and correct labels/signage are used. Premium completes 985K+ audit visits per year.

2. Backstock: Inventory that is kept palletized in boxes in the back room until it is needed to replenish displays on the sales floor.

Clip strip in Walmart Health & Beauty aisle.

3. Clip strip: A retail product display, so named because it is a length of either plastic or metal with clips or hooks at regular intervals, upon which merchandise is hung. These can be found in the aisle, on an endcap or at the registers and is often an impulse purchase. It depends on the retailer for the rules.

4. CPG (Consumer-Packaged Goods): Merchandise that customers use and need to replace on a frequent basis. CPG examples include food, beverages, cosmetics and cleaning products.

5. Cut-in: Shifting or removing merchandise to make space on the retail shelf for new or promotional products. Cut-ins typically occur between major merchandising resets to introduce items more quickly. Also known as NPI (New Product Introduction) or EOL (Product End of Life).

6. DC (Distribution Center): Where products are stored prior to arriving at a retail store. The velocity of products moving through a distribution center is based on the sales volume occurring in the retail store. The more products people buy, the faster the store will need to replenish with additional inventory from the DC. Premium’s National Logistics and Distribution Center (NLDC) is 130K+ square feet. Last year, we shipped 470K packages to stores such as Best Buy and Walmart.

The Honest Company endcap in Walgreens.

7. Endcap: A display at the end of an aisle. Endcaps provide a competitive advantage for brands to call special attention to new or seasonal products, or to capitalize on impulse purchases from customers who would otherwise walk by. Premium builds endcaps in stores such as Walgreens and Walmart.

8. Facing: A way to describe how many “rows” or items should be front-facing on the shelf. This is the typical language used in a planogram. For example, a product may have 2 facings on the 2nd shelf up from the floor. It’s also the process of pulling products forward to be flush with the front of the shelf. Also known as blocking, zoning, straightening or fronting.

9. Islander: An independent display positioned on the floor in a store’s main aisleway or racetrack. It generally has merchandise on all sides and features a distinct category of products. Premium ensures battery islanders near the registers are merchandised with multiple battery brands. Also known as a quad.

10. MOD (Modular): Different retailers utilize the term MOD in a variety of ways. MOD is yet another word for planogram (POG) and is sometimes used to refer to one 4-foot section of an aisle where a category of goods, like laundry detergent, is on display. For example, the laundry detergent is on MOD 4 in aisle 12.

11. MSRP (Manufacturer’s Suggested Retail Price): The price that the manufacturer of the product believes the item should sell for in stores.

12. Mystery shopping: When a decoy shopper is sent into a retail store to evaluate the product merchandising or the customer experience. The mystery shopper behaves like a regular customer but then provides feedback to the store, the brand or the employee to help improve its performance.

13. OOS (Out of Stock): When a product sells out, it leaves an empty slot on the shelf. At Premium, we ensure our clients’ product is not OOS.

14. OSA (On-Shelf Availability): Walmart uses the acronym OSCA, meaning On-Shelf Customer Availability.

Cereal packed out in Walmart.

15. Pack out: The total number of packages of an item for the shelf to be at capacity or fully stocked. Packing out refers to the process of filling the store shelves with replenishment products from the store’s backroom supply. Premium packed out 1MM+ unique products in 2018.

16. Pallet: A wooden structure used to support goods while they’re being moved.

17. POG (Planogram): Visual diagrams that show exactly where to place specific products on shelves within an aisle in order to maximize sales. Think of a POG as a blueprint to follow as you build a section of facings for several products. Also known as plan-o-grams or schematics.

18. POP (Point of Purchase): Promotional collateral or signage that is not part of the regular store but is placed next to the product it’s promoting. POP may call customer attention to a discounted price, new packaging, coupons or special offers. Also known as shelf talkers or IRCs (Instant Redeemable Coupons)

19. PSP (Preferred Service Provider): Premium is 1 of only 5 approved PSPs who are allowed to merchandise products in the world’s largest retailer, Walmart. We are also a preferred partner for Walgreens, Target, Best Buy and several others. To join our PSP team, click here. To learn more about what our PSP team does click here.

20. RSA (Retail Sales Associate) or RSP (Retail Salesperson): An employee who works directly for the retailer. At Premium, we work in tandem with these folks on behalf of our clients. In 2018, Premium trained 475K+ Retail Sales Associates.

Premium Retail Specialist with battery sidekick.

21. Sidekick: Refers to a display that requires little to no assembly in store. These displays are generally made from corrugated cardboard and are pre-packed when they arrive in stores. Different from POP, sidekicks contain merchandise within the display whereas POP is simply promotional collateral. Also known as shippers or PDQs (Predetermined Display Quantity).

22. SKU (Stock-Keeping Unit): A unique number (usually eight alphanumeric digits) assigned to an item by a retailer for the purpose of tracking their inventory. The category of chips can easily have 40 SKUs, in various combinations of brands, sizes and flavors. Pronounced ‘skew.’

23. Top stock: Additional inventory that is stored on top of store shelves for quick re-stocking to the products’ home location.

24. UPC (Universal Product Code): SKUs and UPCs are commonly confused. The difference is that SKUs are unique to a single retailer whereas a UPC is placed on the product by the manufacturer and applies to that product no matter what store is selling it. If two stores are selling the same product, that item will have different SKUs, but the same UPC.

25. Quantity on hand: This describes the physical inventory that a retailer has in possession at the store. Also known as on hand or OH for short.

Haven’t applied yet? Search for retail merchandising jobs here

Sep

27

Watch our latest video produced in-house by Premium Creative to learn more about what we do for our clients.

Aug

1

Retail is changing faster than ever, but the importance of fundamentals still holds true.

As the list of victims of what many are calling the 2017 “Retail Apocalypse” continues to grow, retailers and manufactures find themselves scrambling for answers in a fast-changing landscape. According to a Pew Research survey, roughly eight in ten Americans are now online shoppers, and 15% buy online weekly. Many brick and mortar retailers attempt to combat this shift by investing in revitalizing the shopping experience with new store layouts and expanding assortments. However, many overlook one of the biggest brick-and-mortar basics: ensuring products are in-stock and on the shelf.

Minimizing out-of-stocks and maximizing on-shelf availability is an attainable goal that is becoming increasingly lost in the shuffle at retail. According to the Path to Purchase Institute, some estimate that nearly 10% of sales are lost due to out-of-stocks. For retailers and the manufacturers selling products in their stores, this amounts to billions of dollars each year.

According to Retail Dive, 62% of shoppers still choose to purchase in retail stores over e-commerce so they can see, touch, feel and try out items. In addition, 49% of consumers say they choose stores over the web because they want to take items home immediately. Clearly, consumers still appreciate the tangibility and immediacy brick and mortar stores offer, but they can’t get that if the product is stuck in the backroom. They’re also unlikely to purchase if the product is priced incorrectly or is on an unappealing, unmaintained display.

A solution for manufacturers.  

Job one is getting back to basics through effective merchandising. By focusing on driving efficiencies with improved supply chain practices, new technologies, and tailored merchandising programs, retailers, manufacturers and consumers win. Effective displays, organized products and stocked shelves draw consumers to products, bringing them ever closer to picking it up and taking it home, fulfilling their expectation for immediacy.

Leveraging an experienced merchandising partner with scale and expertise can help eliminate these holes. If your partner is nimble enough to anticipate and adapt to the changing landscape, tailors merchandising strategies based on your specific retail needs, and has the infrastructure to propel your brand to new heights, your product will thrive in brick-and-mortar stores.

For over 30 years, Premium has been that partner for some of the most iconic brands in retail.