List of Contributions

GMROI -- Gross Margin Return on Investment/Inventory

Posted By Glenda Lembicz 08-11-2014 15:25
Found In : Glossary

Gross Margin Return on Inventory (GMROI) = Gross Margin ÷ Average Inventory at Cost What it is This benchmark measures how efficiently the store has invested in inventory, or the store’s ability to turn inventory into cash after deducting the cost of inventory. This ratio assists in ...

Return on Assets

Posted By Glenda Lembicz 08-11-2014 12:59
Found In : Glossary

Return on Assets (ROA) = Net Income Before Taxes ÷ Average Total Assets What it is This measure reflects the store’s efficiency at creating revenue from assets. Why it matters A higher ratio indicates your store is earning more on less investment in assets. A low ROA may ...

Quick Ratio

Posted By Glenda Lembicz 08-11-2014 12:58
Found In : Glossary

= (Current Assets – Physical Inventory) ÷ Current Liabilities What it is This benchmark, also referred to as the “acid test ratio,” is a measure of the store’s ability to pay immediate liabilities. It is a more stringent measure than the Current Ratio because it does not include the merchandise ...

Current Ratio

Posted By Glenda Lembicz 08-11-2014 12:57
Found In : Glossary

Current Ratio = Current Assets ÷ Current Liabilities What it is This ratio is a measure of your store’s ability to generate cash to pay its short-term debts: a gauge of your store’s liquidity. Why it matters A larger ratio indicates a greater ability to pay bills. ...

Operating Income as a Percent of Net Sales

Posted By Glenda Lembicz 08-11-2014 12:56
Found In : Glossary

Operating Income as a Percent of Net Sales = (Total Net Sales – Cost of Goods Sold – Total Operating Expenses) ÷ Total Net Sales x 100 What it is This ratio is another broad measure of the store’s profitability from operations, without regard to interest charges, taxes, and nonoperating ...

Merchandise Philosophy

Posted By Glenda Lembicz 08-08-2014 10:26
Found In : Glossary

A formally written statement that allows your store buyers to make better purchasing decision, which in turn will drive your store's retail success. #RetailPlanning #PlanningMerchandiseAssortments #Promotion #VisualMerchandising #Pricing

Merchandise

Posted By Glenda Lembicz 08-08-2014 10:01
Found In : Glossary

The good or services for sale. #BuyingMerchandise

Price Point

Posted By Glenda Lembicz 08-08-2014 09:53
Found In : Glossary

Prices at which demand for a given product stay relatively high. Also referred to as pricing strategy. #RetailSelling #Pricing #FinancialManagement #RetailPlanning

Markup

Posted By Glenda Lembicz 08-08-2014 09:47
Found In : Glossary

A percentage expression using an item's cost price as its computational basis. To calculate: Selling Price = Cost Price x (1 + margin percentage expressed as a decimal) . Here is the difference between the same percentage of Markup and Margin Example of 22% ...

Merchandise Strategy

Posted By Glenda Lembicz 08-08-2014 09:24
Found In : Glossary

Provides the direction to deal effectively with your store's environment, customers, and competitors. This strategy should identified your target market, the format you plan to satisfy the target market's needs, and how you plan to build a competitive advantage. Overall, the strategy is to create a better ...

Merchandising

Posted By Glenda Lembicz 08-08-2014 08:49
Found In : Glossary

At the store level, the approach to provide a variety of goods available for sale, display these goods to inspire interest, and persuade the purchase of these goods. #BuyingMerchandise #RetailPlanning #PlanningMerchandiseAssortments

Merchandise Categories

Posted By Glenda Lembicz 08-08-2014 08:47
Found In : Glossary

Merchandise categories enable the store staff to classify and structure all aspects of the merchandise in their store. The main goal is for you shift from managing individual articles to merchandise groupings. Merchandise categories can be assigned to stores and store department. In doing so, each article ...

Visual Merchandising

Posted By Glenda Lembicz 08-08-2014 08:40
Found In : Glossary

At the store level, the approach to provide a variety of goods available for sale, display these goods to inspire interest, and persuade the purchase of these goods. #VisualMerchandising

Merchandise Plan

Posted By Glenda Lembicz 08-08-2014 08:35
Found In : Glossary

A planned approached mapped out on how your store will promote and cross-merchandise products via events and sales. While s ometimes refereed to as visual merchandising, yet a merchandise plan is more comprehensive to include calendar of events, budget, displays plan-o-grams, and communication. ...

succession planning

Posted By Glenda Lembicz 08-05-2014 15:01
Found In : Glossary

The act or processes that an organization may take in order for a person to replace a job position or the elimination of a job position. This can be done through cross training for example. Succession Planning is different for every organization, the act or processes is tailored to their needs and wants. ...

Performance Management

Posted By Glenda Lembicz 08-05-2014 14:35
Found In : Glossary

The process that provides feedback, accountability, and documentation for performance outcomes. It also helps employees to channel their talents toward organizational goals. For your employees to be successful, it is important to establish a shared understanding about what is to be achieved. Ideally, ...

Evaluation

Posted By Glenda Lembicz 08-05-2014 14:33
Found In : Glossary

A process by which an employee’s performance and attendance are reviewed and compared to norm or expectations. Typically there are written standards that the performance can be compared to, (i.e., a job description or a goal list). Also referenced to as performance management. #HiringandPerformanc ...

Training

Posted By Glenda Lembicz 08-04-2014 15:10
Found In : Glossary

The action of teaching a person or a particular skill or type of behavior. A critical component that will contribute to a successful “store of the future” is employee training. We all sustain our businesses with student staff. To insure a postive customer experience, it is important that we give student ...

Interviewing

Posted By Glenda Lembicz 08-04-2014 14:42
Found In : Glossary

Interviewing is a critical step in the hiring process. It is a formal meeting between the hiring manger (and perhaps others from the current staff) and a candidate applying for a position at your store. The conversation involves questions to evaluate the candidate’s knowledge and skill base for the open ...

Organizational Culture

Posted By Glenda Lembicz 08-04-2014 14:41
Found In : Glossary

Organizational culture is the collective behavior of people who are part of an organization, and the meanings they attach to their actions. This includes values, vision, norms, working language, systems, symbols, beliefs, and habits. Organizational culture affects the way people and groups ...

Glenda Lembicz, CAE

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