Glossary Chapter 1 bricks-and-mortar retailers Retailers that operate out of a physical building. buying The retailing career path whereby one uses quantitative tools to develop appropriate buying plans for the store's merchandise lines. category killer Is a retailer that carries such a large amount of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing what they need, thus killing the competition. channel advisor or channel captain Is the institution (manufacturer, wholesaler, broker, or retailer) in the marketing channel that is able to plan for and get other channel institutions to engage in activities they might not otherwise engage in. Large store retailers are often able to perform the role of channel captain. clicks-and-mortar retailers Retailers that sell both online and in physical stores. gross margin Is the difference between net sales and cost of goods sold. gross-margin percentage A measure of profitability derived by dividing gross margin by net sales. high-margin/high-turnover retailer Is one that operates on a high gross margin percentage and a high rate of inventory turnover. high-margin/low-turnover retailer Is one that operates on a high gross margin percentage and a low rate of inventory turnover. high-performance retailers Are those retailers that produce financial results substantially superior to the industry average. inventory turnover Refers to the number of times per year, on average, that a retailer sells its inventory. low-margin/high-turnover retailer Is one that operates on a low gross margin percentage and a high rate of inventory turnover. low-margin/low-turnover retailer Is one that operates on a low gross margin percentage and a low rate of inventory turnover. market share Is the retailer's total sales divided by total market sales. operating expenses Are those expenses that a retailer incurs in running the business other than the cost of the merchandise. optional stock list Is a merchandising method in which each store in a retail chain is given the flexibility to adjust its merchandise mix to local tastes and demands. private label branding May be store branding, when a retailer develops its own brand name and contracts with a manufacturer to produce the product with the retailer's brand, or designer lines, where a known designer develops a line exclusively for the retailer. retailing Consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer. same-store sales Compares an individual store's sales to its sales for the same month in the previous year. scrambled merchandising Exists when a retailer handles many different and unrelated items. standard stock list Is a merchandising method in which all stores in a retail chain stock the same merchandise. store management The retailing career path that involves responsibility for selecting, training, and evaluating personnel, as well as in-store promotions, displays, customer service, building maintenance, and security.