What is a Loss Leader? A loss leader is a product that a retailer intentionally prices below cost or profit margin in order to attract customers. While the product itself may not generate a profit, the loss leader strategy is designed to increase store traffic—whether online or in-store. Why Loss
What is a vendor portal? A vendor portal is a centralized, digital workspace where retailers and vendors collaborate on promotional campaigns. It serves as the go-to platform for submitting proposals, negotiating deals, tracking approvals, and sharing performance data — all in real time. Quick metric Proposal Turnaround Time = Approval
What are KVIs? Key Value Items (KVIs) are products that customers are highly price-aware of—meaning they notice and remember their prices. Shoppers often use these items as benchmarks to judge how affordable a store is overall. They’re usually everyday essentials like milk, eggs, detergent, or bananas. Why KVIs matter Because
What are Endcap Displays? Endcap displays are strategically placed shelves at the ends of aisles in retail stores, their purpose is simple: capture shopper attention and encourage impulse purchases.. These displays are particularly effective for showcasing promotions, seasonal items, or high-margin products. Unlike regular shelves, they don’t rely on aisle
What is Price Elasticity of Demand (PED)? Price elasticity of demand (PED) quantifies how the quantity demanded of a product changes in response to price variations. Price Elasticity of Demand formula: The formula for calculating price elasticity of demand is:
What is GMROI? The Gross Margin Return On Investment (GMROI) is a key metric that calculates a retailer’s gross profit generated for the amount of money they invested in their average inventory holdings. In general, a higher GMROI is better, as it indicates that the inventory is turning into profit efficiently, helping retailers optimize
What is a planogram? In retail, a planogram is a schematic model used by brick-and-mortar stores. Planograms create a visual representation of the store’s product placement based on where they may sell the best and where they might have a bigger chance to trigger the shopper’s intention to make a
What is Inventory Turnover Ratio? Inventory Turnover Ratio (ITR), often referred to as Stock Turnover Ratio, is a financial ratio that shows how effectively a company is managing its inventory, measuring how many times it can sell and replace its entire inventory in a given period of time (typically a
What is retail cannibalization? Retail cannibalization is when a customer trades between similar products. This can be driven by many factors like the introduction of a new product, promotional incentivization, better product placement, etc. For example, a new yogurt flavor is introduced, and the store notices record sales for this
What is a halo effect? A halo effect is when a product causes a consumer to purchase another product by affecting their trust in a certain product or brand, perception of quality, and even their association with the product/brand. For example, a retailer, let’s call it “Terra Organic”, is known
