Online Glossary

Additional Markup An increase in a retail price above the original markup that is used when demand is unexpectedly high or when costs are rising.

Additional Markup Percentage Looks at total dollar additional markups as a percentage of net sales:

Addition to Retail Percentage Measures a price rise as a percentage of original price:

Advertising Any paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor.

Affinity Exists when the various stores at a given location complement, blend, and cooperate with one another, and each benefits from the others' presence.

All-You-Can-Afford Method A promotional budgeting technique in which a retailer first allots funds for each element of the retail strategy mix except promotion. Whatever funds are left over are placed in a promotional budget.

Analog Model A computer site-selection tool in which potential sales are estimated on the basis of existing store revenues in similar areas, the competition at a prospective location, the new store's expected market shares at that location, and the size and density of the location's primary trading area.

Ancillary Customer Services Extra elements that enhance a retail strategy mix. They do not have to be provided.

Application Blank The first tool used to screen applicants. It provides data on education, experience, health, reasons for leaving prior jobs, organizational memberships, hobbies, and references.

Assets Any items a retailer owns with a monetary value.

Asset Turnover A performance measure based on a retailer's net sales and total assets. It is equal to net sales divided by total assets.

Assortment Display An interior display in which a retailer exhibits a wide range of merchandise for the customer. It may be open or closed.

Atmosphere Refers to a store's physical characteristics that are used to develop an image and draw customers.

Atmospherics See Atmosphere.

Attitudes (Opinions) The positive, neutral, or negative feelings a person has about the economy, politics, goods, services, institutions, and so on.

Audit Form Lists the area(s) to be examined and the exact information required in evaluating each area.

Automatic Markdown Plan Controls the amount and timing of markdowns on the basis of the length of time merchandise remains in stock.

Automatic Reordering System Orders merchandise when stock-on-hand reaches a pre-determined reorder point. An automatic reorder can be generated by a computer on the basis of a perpetual inventory system and reorder point calculations.

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