Online Glossary

Factory Outlet A manufacturer-owned store selling that firm's closeouts, discontinued merchandise, irregulars, canceled orders, and, sometimes, in-season, first-quality merchandise.

Family Life Cycle Describes how a traditional family evolves from bachelorhood to children to solitary retirement.

Feedback Signals or cues as to the success or failure of part of a retail strategy.

FIFO Method Logically assumes old merchandise is sold first, while newer items remain in inventory. It matches inventory value with the current cost structure.

Financial Leverage A performance measure based on the relationship between a retailer's total assets and net worth. It is equal to total assets divided by net worth.

Financial Merchandise Management Occurs when a retailer specifies exactly which products are purchased, when products are purchased, and how many products are purchased.

Fixed Pricing Exists in situations where a branch of government has some degree of control and retailers must conform to a stated price structure.

Flat Organization A firm with many subordinates reporting to one supervisor.

Flea Market Has many retail vendors offering a range of products at discount prices in plain surroundings. Many flea markets are located in nontraditional sites not normally associated with retailing. They may be indoor or outdoor.

Flexible Pricing A strategy that allows consumers to bargain over selling prices; those consumers who are good at bargaining obtain lower prices than those who are not.

Floor-Ready Merchandise Items that are received at the store in condition to be put directly on display without any preparation by retail workers.

Food-Based Superstore A retailer that is larger and more diversified than a conventional supermarket but usually smaller and less diversified than a combination store. It caters to consumers' complete grocery needs and offers them the ability to buy fill-in general merchandise.

Formal Buying Organization Views the merchandise-buying function as a distinct retail task; a separate department is set up.

Franchising Involves a contractual arrangement between a franchisor (a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to conduct a given form of business under an established name and according to a given pattern of business.

Free-Flowing Traffic Flow See Curving Traffic Flow.

Frequency The average number of times each person who is reached is exposed to a retailer's ads in a specific period.

Frequent Shopper Programs See Customer Loyalty Programs.

Fringe Trading Area Includes the customers not found in primary and secondary trading areas. These are the most widely dispersed customers.

Full-Line Discount Store A type of department store characterized by (1) a broad merchandise assortment; (2) centralized checkout service; (3) merchandise normally sold by self-service with minimal assistance; (4) no catalog order service; (5) private-brand nondurable goods and well-known manufacturer-brand durable goods; (6) hard goods accounting for a much greater percentage of sales than at traditional department stores; (7) a relatively inexpensive building, equipment, and fixtures; and (8) less emphasis on credit sales than in full-service stores.

Functional Product Groupings Categorize and display a store's merchandise by common end uses.

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