RETAIL NEWS

E-COMMERCEIndia to overtake US as world’s largest e-commerce market ― p12

Mobile: How’s the Retail Industry Stacking Up? p6

DECEMBER 2016

INNOVATIONWill Car Vending Machine Upend Used Car Sales ― p10

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DECEMBER 2016 RETAIL NEWSCO

NTEN

TS 6 BEST PRACTICES / MARKET TREND REPORTMobile: How’s the Retail Industry Stacking Up?

Omnichannel, not omnishambles

Simpler is (sometimes) better: Managing complexity in consumer goods

The Outerwear Report Fall 2016

7-9 TOP STORIES156 Million Americans Plan To Shop On Super Saturday

A $260 billion ‘ticking time bomb’: The costly business of retail returns

Holiday Inventory: Intuition just isn’t enough anymore

Online spend per gift rises; outerwear most popular gift

Organized Retail Crime (ORC) On The Rise

UPS Takes a Stake in Retail Returns Specialist Optoro

Wintry blast drives holidays shoppers online, into malls

Online desktop sales climb one week before Christmas

What’s Next: Predicting where retailers will focus their energy in 2017

Retail Imports Up As Holiday Shoppers Head To Stores

10-11 INNOVATION & OPERATIONSWill Car Vending Machine Upend Used Car Sales

Forget Robots – People Skills Are the Future of American Jobs

How Do You Get All of Your Data into Amazon’s Cloud, By Truck of Course!

Robotic Palletizer Boosts Production, Prevents Injuries

Alibaba-Amazon brawl looms on SE Asia

Affluent millennials interested in purchasing luxury goods drops 15%

Online and convenience-store sales drive China FMCG growth

11 RETAILING IN ASIA-PACIFIC

CONT

ENTS

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DECEMBER 2016 RETAIL NEWS

12 RETAILING IN EUROPE, INDIA, MIDDLE EAST, AFRICAIndia to overtake US as world’s largest e-commerce market

Musgrave to export SuperValu own-brand products to China: Move comes as wholesaler strikes deal with Chinese e-commerce company Alibaba

The grocery chain that became Africa’s biggest retailer by betting on its middle class

13 RETAILING IN LATIN AMERICAMexico Drive Billions in U.S. Commerce

Mexico Overtakes Canada as No. 2 U.S. Exporter Ahead of Trump

Retailer Wal-Mart de Mexico to invest $1.3 billion in Mexico

13-14 RETAILING IN NORTH AMERICACostco’s switch to Visa is paying off

PetSmart’s holiday gift: Free same-day deliveries

UPS, FedEx fight to stay ahead of gift package deluge

14 CWW RETAIL LOGISTICS SUCCESS STORY CWW CMH

15-17 RETAILING JARGON

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DECEMBER 2016 RETAIL NEWS

Happy holidays!

I want to take a moment to thank each one of our

retail clients along with all the Crane Companies’

personnel who have made the retail marketplace

and our vertical successful this year. The retail

sector has plenty to be happy about as we look at

overall performance and now initial holiday sales

results.

During the 1st few weeks of the retail 2016

holiday retail season, consumers are meeting

and exceeding all sales increase expectations.

According to the latest reports from Adobe, Chain

Store Age, National Retail Federation, and Verizon,

the retail market is reporting double digit

percentage increases in sales this holiday season

with ecommerce leading the sector. Additionally

over 150 million consumers are expected to shop

in stores and online during super Saturday, 12/24,

potentially driving sales even higher. While 2016

has been a hectic year, full of economic ups and

downs, the retail sector and its consumers have

continued to drive consistent month over month

growth.

In this month’s newsletter, I have selected articles

and reports which look at how and what is driving

the 2016 holiday season as well as including some

useful retailing terms and definitions. Additionally,

Hello everyone,“

Source: U.S. News & World Report. (2016). Retrieved from http://money.usnews.com/money/blogs/my-money/articles/2016-12-19/6-marvelous-last-minute-holiday-sales-for-2016.

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DECEMBER 2016 RETAIL NEWS

I have included a Crane Worldwide Logistics

success story demonstrating how we (our clients

and Crane Worldwide Logistics) work together to

make the retail market a success.

In closing I want to again wish everyone a very

happy holiday season and looking forward to

working with each of you to make 2017 even better.

Sincerely,

Dr. David Widdifield, DM.Director, Retail Solutions, Crane Worldwide Logistics

Contact: david.widdifield@craneww.com

”

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DECEMBER 2016 RETAIL NEWS

Mobile: How’s the Retail Industry Stacking Up?Newstore- What is omnichannel really like for today’s mobile first consumer? Get access to the only report to examine online AND offline through the lens of a mobile shopper. Are retailers making the grade? Find out by downloading this complimentary copy of the 2016 Mobile Retail Report. This report reviews;• Extensive, original research of 112 well-known luxury, lifestyle and fashion retailers,• A comprehensive analysis of the consumer experience across native app, mobile web, and in-store,• Over 120 data points covering consumer path to purchase, engagement, fulfillment and more.

> Download the full report to learn more. _____________________________________________

Omnichannel, not omnishambles McKinsey- Although consumers have quickly adopted digital channels for both service and sales, they aren’t abandoning traditional retail stores and call centers in their interactions with companies. Increasingly, customers expect “omnichannel” convenience that allows them to start a journey in one channel (say, a mobile app) and end it in another (by picking up the purchase in a store). For companies, the challenge is to

provide high-quality service from end to end, regardless of where the ends might be.

> Download the report to learn more._____________________________________________

Simpler is (sometimes) better: Managing complexity in consumer goodsMcKinsey- With consumers’ product preferences diverging and retail formats proliferating, consumer-packaged-goods (CPG) companies have compelling reasons to constantly launch new SKUs. Fast-growing niche markets—such as health and wellness products, socially and environmentally responsible wares, and ethnic foods—represent enticing opportunities for CPG companies, as do new online and offline retail channels. Indeed, product innovation can help CPG companies win shelf space and capture growth, which is crucial at a time when many CPG categories are experiencing flat sales. But manufacturing more SKUs means having more complexity in the entire business system—and that’s not a trivial matter to CPG companies already under pressure to cut costs and to become ever more efficient. We estimate that complexity among food-and-beverage manufacturers, for example, is costing them as much as $50 billion in gross profit in the US market alone.

> Download the report to learn more _____________________________________________

The Outerwear Report Fall 2016 Business Insider - Intelligence Node brings you a comprehensive, infographic-based report highlighting up-to-date category analysis for Outerwear in the US market across all major e-commerce retailers. Focusing on price and discount benchmarking across major brands and retailers, top trending styles and attributes working well within the Fashion & Apparel category, this report will give you a unique insight into competitive intelligence to base your merchandise planning for the coming Holiday season.

> Download the full report to learn more.

Best Practices/Market Trend Report

IMAGE:IStock

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DECEMBER 2016 RETAIL NEWS

156 Million Americans Plan To Shop On Super Saturday National Retail Federation- The biggest shopping day of the holiday season is approaching, with 66 percent of Americans – an estimated 155.7 million people – planning to or considering taking advantage of Super Saturday sales to complete their holiday gift list, according to the annual survey released today by the National Retail Federation and Prosper Insights & Analytics. For the first time in survey history, consumers were asked if they are planning to or considering shopping on Super Saturday, December 17. The survey found that more people said they planned to shop on Super Saturday than those who said they planned to shop over Thanksgiving Weekend, in an earlier survey.

> Read more

A $260 billion ‘ticking time bomb’: The costly business of retail returnsCNBC- The holiday shopping season is often a peak for retailers’ sales. But the flipside to that boom is it leads to peak returns season — costing retailers billions to handle unwanted, used or damaged goods each year. The surge in digital shopping is only compounding the pain, as record online sales means record online returns. It’s not uncommon to see return rates of 30 percent or more for merchandise that’s bought online. Clothing returns can be closer to 40 percent. In total, Americans returned $260 billion in merchandise to retailers last year, or 8 percent of all purchases, according to the National Retail Federation.

> Read more _____________________________________________

Top Stories

IMAGE:IStock

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DECEMBER 2016 RETAIL NEWSHoliday Inventory: Intuition just isn’t enough anymore Chain Store Age- When it comes to holiday inventory, most retailers use their intuition and industry knowledge to make their sales projections, plan their promotional calendar, and schedule product reorders. This was fine when the season’s promotions were merely percentages off and customers purchased products in stores. But as the retail world becomes more complex, so too must retailers’ holiday plans. With an estimated 40% of retailers’ yearly profits on the line, intuition this holiday season just isn’t enough.

> Read more_____________________________________________

Online spend per gift rises; outerwear most popular gift Chain Store Age - Consumers are spending more money per gift online this holiday season than last — 49% more to be exact. That’s according to e-gifting platform and service Loop Commerce, which announced insights into consumer gifting behavior and top gifts purchased between Dec. 10 and Dec. 16, 2016. While consumers are spending more, the top gifts continue to be apparel, led by outerwear, including fleece sweatshirts and jackets. The data also underscores a growing trend toward more personalized, thoughtful gifts as accessories, like handbags, displaced traditional gifts of the past, such as kitchen appliances, cookware, and even electronics.

> Read more_____________________________________________

Organized Retail Crime (ORC) On The Rise National Retail Federation- For the first time in the 12-year history of the National Retail Federation’s organized retail crime survey, every responding retail company — 59 in total — said it had been a victim of ORC in the past 12 months. In addition, 83 percent of respondents, all top-level loss prevention executives, reported that ORC activity had increased in the past 12 months: 44 percent reported a “significant increase” while 39 percent reported a “slight increase.” The survey also uncovered a trend of ORC criminals and shoplifters

becoming “more aggressive and brazen;” 97 percent reported an increase in the levels of aggression, and one in six felt the level of aggression was much higher than the previous year.

> Read more_____________________________________________

UPS Takes a Stake in Retail Returns Specialist Optoro Wall Street Journal- United Parcel Service Inc. is investing in a logistics provider that helps companies take back and resell returned merchandise, an increasingly costly burden for retailers as more consumers take their shopping online. Optoro Inc. makes software that sorts and analyzes unwanted merchandise, then routes it to online marketplaces and other channels using the company’s algorithms to determine where retailers will get the most money back.

> Read more_____________________________________________

Wintry blast drives holidays shoppers online, into malls USA Today- As temperatures plummeted, retailers’ online traffic soared this past weekend as they entered the home stretch of the holiday shopping season. The last full weekend before Christmas and the start of Hanukkah proved to be a big winner for online shopping, with online traffic up 11% on Saturday, and 16% on Sunday, according to Verizon which tracked traffic on home-based Internet connections to the 25 largest U.S. online retailers. > Read more _____________________________________________

Online desktop sales climb one week before Christmas Chain Store Age- With only days to go in the 2016 holiday shopping season, online desktop spending continues to rise. For the holiday season-to-date, $55.2 billion has been spent online, marking a 13% increase versus the corresponding days last year. The most recent week, Dec. 12-18, posted a strong 15% growth in

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DECEMBER 2016 RETAIL NEWS

online sales, marking $7.6 billion in desktop spending during the last full week before Christmas. These details were shared by comScore in analysis highlighting U.S. retail e-commerce spending from desktop computers for the first 48 days of the November-December 2016 holiday season.

> Read more_____________________________________________

What’s Next: Predicting where retailers will focus their energy in 2017 National Retail Federation- On the election night last month crystal balls shattered from coast to coast, proving once again that making predictions is not for the faint of heart. Still, it’s become a tradition at STORES to put a stake in the ground and make some educated guesses about how the coming year is likely to unfold. 2017 will be a tipping point for many of the technologies that have been in startup mode for two to three years. That’s not to say that concepts such as artificial intelligence and virtual reality are ready for prime time, but clearly we’re at a point where these emerging technologies have proven valuable and are on the cusp of sparking greater change. We’ve also reached an inflection point in the expectations of consumers and how they want to interact with brands

and retailers. Shoppers expect brands to understand what’s important to them. They want and demand trust; if they have a problem, they expect answers. Connecting with today’s shopper implies understanding the fierce urgency of now that prevails in their lives. For retailers, that means being prepared to adapt quickly and transform processes when needed. Shoppers can be a punishing crowd; get on their bad side and you’ll suffer. > Read more_____________________________________________

Retail Imports Up As Holiday Shoppers Head To Stores National Retail Federation- With the holiday shopping season officially under way, imports at the nation’s major retail container ports are expected to be up 4.4 percent this month over the same time last year and should see a slightly larger increase next month, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates. “Retailers are importing more during the holidays this year than last year and that can only mean one thing – they expect to sell more,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said.

> Read more_____________________________________________

IMAGE:IStock

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DECEMBER 2016 RETAIL NEWS

Will Car Vending Machine Upend Used Car Sales Industry Week- If brick-and-mortar stores fear Amazon and e-commerce as a threat to their existence, used car dealers may be terrified by the newest development in their industry: a car vending machine. Yes, it’s real. And no, you can’t shake it to get a free one. Online used car retailer Carvana opened its newest “vending machine” in Houston, where the gleaming, glass-encased structure sits right off a busy freeway. It dispenses used vehicles in four delivery bays, but only to customers who have the special coin to make it work -- which they receive after completing an online purchase. The company believes it could prove a valuable part of the strategy to win customers over by completely overhauling the dreaded process of buying a used car, something notoriously difficult and plagued by the fear of sales people taking advantage of prospective buyers.

> Read more _____________________________________________ Forget Robots – People Skills Are the Future of American Jobs Industry Week- Automation may be gutting American manufacturing jobs, but there’s one thing the robots still can’t beat us at: people skills. It just so happens

that the future of American labor will require a lot of them. The occupations projected to add the most jobs in the next 10 years, according to the Bureau of Labor Statistics, all require people skills — like home health aides, registered nurses, and retail and service workers. The future of American labor lies in jobs that require empathy and critical thinking. For an office worker, that could mean being able to communicate across departments. For someone in customer service, it’s interacting with another complicated human. For a care provider, it’s the empathy to help someone vulnerable and in need. These are all skills robots are really bad at — at least for now. And they have, over the last three decades, become increasingly vital in the labor market.

> Read more_____________________________________________ How Do You Get All of Your Data into Amazon’s Cloud, By Truck of Course! Supply Chain 247- Amazon Web Services CEO Andy Jassy just announced a new service called AWS Snowmobile, which is a 21st century version of the classic “sneakernet” method of data transport. Basically, Amazon is offering to tow a 45-foot-long shipping container full of hard drives to your data center, plug in to your servers via fiber, and siphon off up to 100 petabytes (a petabyte is 1 million gigabytes) of data. That shipping container is then transported to an Amazon data center where all the data is uploaded to S3 or Amazon Glacier, Amazon’s cloud data storage services.

> Read more _____________________________________________ Robotic Palletizer Boosts Production, Prevents Injuries Industry Week - Pryor, Oklahoma-based Red Devil, Inc. is a privately-owned maker of more than 400 hand tools and chemical products, such as caulk, spackling and sealants, for professional construction and home maintenance and improvement. Along with its brand-name products, Red Devil manufactures private label products for some of America’s largest hardware and

Innovation & Operations

IMAGE: BoeingIMAGE:Carvana

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DECEMBER 2016 RETAIL NEWS

Alibaba-Amazon brawl looms on SE Asia China Daily- US major set to challenge Chinese behemoth’s Lazada platform in regional online shopping Alibaba Group Holding Ltd and Amazon.com Inc are about to clash in Southeast Asia. Singapore-based online marketplace Lazada Group SA, which Alibaba bought in April for $1 billion, will be right at the heart of that conflict. Lazada, Southeast Asia’s largest e-commerce site, is rolling out a series of initiatives in anticipation of the US giant’s entry next year. It’s expanding its delivery network within the region and beyond, via partners in China and South Korea.

> Read more_____________________________________________

Affluent millennials interested in purchasing luxury goods drops 15% Luxury Daily- Travel experiences are proving to be dramatically more important to affluent millennials, with most interested in hotel accommodations and flight tickets rather than luxury goods. A recent report from Agility showed that across the globe the majority of prosperous millennials are likely to travel abroad in the next year. Percentages in China, India, Singapore, Malaysia, Hong Kong, South Korea and Taiwan are all above 71 percent for those interested in abroad travel over the next 12 months. “Millionaires in Asia are young

and many of them in our study are in the millennials age group,” said Amrita Banta, managing director at Agility Research & Strategy. “Travel is the new luxury in Asia amongst this profile of consumers and we see that the appetite for travel has increased this year from the last year but the appetite to buy luxury goods has definitely decreased in our sample.” The study interviewed 922 affluent millennials from China, India, Singapore, Hong Kong, Malaysia, South Korea and Taiwan.

> Read more_____________________________________________

Online and convenience-store sales drive China FMCG growth Campaign Asia- Online retailers and convenience stores are enjoying strong momentum in China thanks to rapid urbanization, according to the annual Chinese shopper report released by Kantar Worldpanel and Bain & Company. Online FMCG sales grew by 36.5 percent last year on the back of 69 percent gains in volume growth, while convenience-store FMCG sales online grew at 13 percent. The top 10 e-retailers accounted for 64 percent of total FMCG spending online last year, compared with 55 percent in 2014. Online cosmetics platform Jumei grew nearly six-fold between 2013 and 2015, while its competitor Lefeng grew by 245 percent.

> Read more

Retailing in Asia-Pacific

home center chains. Red Devil’s manufacturing facility includes semi-automated production lines, which, until recently, terminated with a manual palletizing process. One high volume line produces, among other things, custom color caulk in tubes for tile grout and backsplashes. The other line produces spackling and sealants in pint-sized cans to gallon-size pails. Red Devil employed workers who stood two and three deep at the end of the line lifting and positioning boxes of product (weighing up to approximately 30 pounds) on pallets. Workers would flip flop on the lines to give one another a break. One would palletize, while the other

fed the assembly line’s box erector. Each line would run two, 10-hour shifts per day for four days. “We looked to automate the production lines and deploy our people elsewhere, instead of hiring more people to increase throughput,” added Brown. According to Brown, hiring an additional staff position for robotic programming was not possible. S&R Robot Systems, LLC of Plano, Texas, a Yaskawa Motoman integrator, recommended the five-axis Motoman MPL80 II robot with MLX200 controller platform and PalletSolver pallet generation software. > Read more

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DECEMBER 2016 RETAIL NEWS

India to overtake US as world’s largest e-commerce market Economic Times- The Indian e-commerce market is set to overtake the US and become the second largest in the world in less than two decades, going head-to-head with China for the numero uno position, according to a report by global payments firm Worldpay. The report said the e-commerce market is expected to grow exponentially with emerging markets leading the charge particularly India, where the segment is predicted to mature by 28% per year from 2016 to 2020.

> Read more_____________________________________________

Musgrave to export SuperValu own-brand products to China: Move comes as wholesaler strikes deal with Chinese e-commerce company Alibaba Irish Times - Wholesale retailer Musgrave has announced it is to begin exporting SuperValu own-brand products to China following a deal with Chinese e-commerce company Alibaba. Musgrave will initially supply up to 40 own-brand ambient products, including SuperValu breakfast cereals, coffee, jam, biscuits and healthy snacks. The company has agreed a partnership

with Alibaba and will use its Tmall Global ecommerce platform to sell directly to Chinese consumers. Musgrave will open a flagship SuperValu e-commerce storefront on Tmall Global, making it the first Irish retailer with a presence on the platform.

> Read more _____________________________________________

The grocery chain that became Africa’s biggest retailer by betting on its middle class Quartz- Just as Freedom Park, south of Johannesburg, completed its transition from a shanty town to a lower middle class neighborhood with electricity, piped water, and tarred roads; a spanking new Shoprite store opened up in November, with its distinct bright red and white logo and brand livery. This strategy to seek out Africa’s growing middle class consumers, in places its competitors have yet dared to venture, has helped drive Shoprite’s rapid expansion in the last decade. The food retailer has expanded from eight poorly performing stores worth 1 million rand in 1979 (around $1.2 million then), to become Africa’s largest retail chain, worth 113.7 billion rand ($8.5 billion) today.

> Read more

Retailing in Europe, India, Middle East, Africa

IMAGE: IStock

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DECEMBER 2016 RETAIL NEWS

Mexico Drive Billions in U.S. Commerce Wall Street Journal - Emerging markets tend to grab business headlines, so it may come as a surprise that countries bordering the United States represent far bigger market opportunities than the so-called BRIC nations of Brazil, Russia, India, and China. Get the facts about the benefits of business with Mexico. > Read more

_____________________________________________

Mexico Overtakes Canada as No. 2 U.S. Exporter Ahead of Trump Bloomberg- Mexico is overtaking Canada as the No. 2 exporter of goods to the U.S. this year, in a sign of how economic ties have deepened between the two countries even as the relationship is being questioned by President-elect Donald Trump. Shipments from Mexico totaled $245 billion in the first 10 months of the year, according to Commerce Department figures released Tuesday, ahead of Canada’s $230 billion. If the trend continues, it would be the first time ever the U.S. bought more imports from its neighbor to the south. The two countries ended 2015 tied in exports to the U.S. The trend of catching up to Canada puts China and Mexico as the

top two exporters to the U.S. just as Trump prepares to take office in January, reflecting the strong pull of lower cost jurisdictions for the U.S. economy. Canada, which has one of the highest cost bases in the Americas, has seen its share of U.S. imports fall to about 13 percent from around 20 percent two decades ago.

> Read more

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Retailer Wal-Mart de Mexico to invest $1.3 billion in Mexico Reuters - Retailer Wal-Mart de Mexico said it will invest $1.3 billion in logistics in Latin America’s No. 2 economy, in what is perceived as a show of commitment to Mexico at a time of uncertainty after the election of Donald Trump. The investment in Mexico will not result in any jobs being moved from the United States, Wal-Mart spokeswoman Jo Warner told Reuters. “The investment is funded by Walmex and is necessary for expansion of Wal-Mart’s Mexican business,” she said. A large part of Wal-Mart’s investment will be over the next three years, including in back-end infrastructure, and would create some 10,000 permanent new jobs. > Read more

Retailing in Latin America

Costco’s switch to Visa is paying off Chain Store Age- Costco Wholesale Corp. a better-than-expected quarterly profit, helped partially by lower fees to credit card partner Visa. Costco, which completed its switch to Visa from American Express during the fourth quarter, said net income rose to $545 million, or $1.24 per share, in the first quarter, ended Nov. 20, from $480 million, or $1.09 per share, in the year-ago period. (The retailer’s profit in the latest quarter included a $51 million gain from a legal settlement.)

> Read more

_____________________________________________

PetSmart’s holiday gift: Free same-day deliveries Chain Store Age - As the online shopping window is closing for traditional home delivery, PetSmart is offering free same-day shipments until Dec. 24. The service is available in 17 metro areas across the nation, including Boston, Los Angeles, Orange County, San Francisco, San Jose, Las Vegas, Atlanta, Miami, Seattle, Chicago, Dallas, Houston, Philadelphia, Washington, D.C., New York City, Yonkers and Northern New Jersey. Overall, the same-day deliveries will cover nearly 2,500 ZIP codes. PetSmart is offering the service through its partnership with Deliv, a crowdsourced, last-mile

Retailing in North America

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DECEMBER 2016 RETAIL NEWSlogistics company that powers scheduled, same-day delivery and returns for omnichannel retailers, local businesses and e-commerce companies. To ensure efficient same-day deliveries, PetSmart utilizes its stores in each local community as fulfillment resources.

> Read more__________________________________________

UPS, FedEx fight to stay ahead of gift package deluge USA Today - If you’re hoping that your holiday gift will arrive on time, here’s what it’s competing with - at least 30 million packages a day. The nation’s biggest shippers are laboring – and so far say they are succeeding – at keeping up with a record-breaking onslaught of online-ordered gift packages now that Christmas and the start of Hanukkah are less than a week away. UPS is anticipating it will deliver more than 30 million packages a day this week, almost twice the 16 million deliveries made during a more typical 24-hour-period, says company spokeswoman Susan Rosenberg. Meanwhile FedEx, which has projected deliveries to be roughly 10% higher during the peak holiday shipping season than those weeks in 2015, expects the four Mondays between Thanksgiving and Christmas to be “among the busiest days in the history of the company,’’ says spokesman Patrick Fitzgerald.

> Read more

CWW ColumbusCrane Staff - Crane Worldwide Logistics (CWW) Columbus station has been selected as a trusted advisor and strategic logistics partner by a leading Columbus base ecommerce retail client specializing in fast fashion apparel to assist in the development of their business to consumer (B2C) product distribution channel for U.S. based consumers. In collaboration with the retail client, CWW personnel will assist in the design,

implementation, and operation of the logistics network necessary for the consumer’s online purchase and delivery of the client’s goods to their homes. In addition to the order fulfillment and management service, CWW will also provide inbound transportation, inventory management, and reverse logistics operations for the client.

> Contact the CWW Columbus station

CWW Retail Logistics Success Story

IMAGE: FedEx

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DECEMBER 2016 RETAIL NEWS

Action Alley: The sales area of a store located immediately after entering._____________________________________________Ad Slick: Ad slicks refer to the final, camera-ready advertisement. It gets its name from the glossy paper on which it is printed.Black Friday: Black Friday is the day after Thanksgiving- it’s the biggest shopping day of the year._____________________________________________Breakpack: A carton received in the warehouse with two or more inner selling units that can be broken down and shipped to the stores._____________________________________________Break-even Point: The point in business where the sales equal the expenses. There is no profit and no loss.Case Pack: Merchandise shipped in full cases. Cartons cannot be broken into smaller cases._____________________________________________Cash Discount: A percentage reduction in price for payment within a specified period of time._____________________________________________Cash Flow: The movement of money in and out of a business and the resulting availability of cash._____________________________________________Category Killer: A large retail chain store that is dominant in its product category. This type of store generally offers an extensive selection of merchandise at prices so low that smaller stores cannot compete._____________________________________________Chain Store: One of a number of retail stores under the same ownership and dealing in the same merchandise._____________________________________________Comp Sales: Comparable-store sales are a measurement of productivity in revenue used to compare sales of retail stores that have been open for a year or more. Historical sales data allows retailers to compare this year’s sales in their store to the same period last year._____________________________________________Contribution Margin: Contribution margin is the difference between total sales revenue and total variable costs. The term is applied to a product line and is generally expressed as a percentage._____________________________________________CO-OP: An advertising allowance offered by a vendor, payable upon proof of an ad having been run.

Cyber Monday: Cyber Monday is the Monday after Thanksgiving and one of the busiest shopping days of the year for online retailers. Retailers notice a spike in sales on this day as many consumers who were too busy to shop over the Thanksgiving weekend, or who did not find what they were looking for, head to the web on Monday from work or home to find bargains._____________________________________________Department Stores: Retailers that carry a broad variety and deep assortment, offer considerably good customer service, and are organized into separate departments for displaying merchandise._____________________________________________Digital Signage: Digital signage refers to a variety of technologies used to replace traditional retail signs. Instead of static print signs and billboards, digital signage is composed of electronic signs dispersing content and messages in the most targeted, interactive way._____________________________________________Discount Stores: Retailers that offer low prices and low customer service._____________________________________________Drop Shipping: Drop shipping is the process, in which a retailer markets a product, collects payment from the customer and then orders the item from a supplier, which is then shipped directly to the customer. The retailer’s profit is the difference between the amount collected and the amount spent. No inventory is held and the retailer is not involved in the shipping._____________________________________________Drug Stores: Retailers that resemble specialty stores who concentrate on health and personal grooming merchandise._____________________________________________E-retailers: Retailers who operate their business solely on the internet._____________________________________________Facing: The number of identical products (or same SKU) facing out toward the customer. Facings are used in plan-o-grams and when zoning a retail store._____________________________________________Fair Trade: Fair trade is an organized movement developed to promote standards of environmentalism and fair wages; alleviate global poverty; and ensure that

Retailing Jargon

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DECEMBER 2016 RETAIL NEWScompanies negotiate with the growers, manufacturers and producers of products for a fair price. This social-responsibility movement focuses on exports from developing countries._____________________________________________Gondola: Primary merchandising fixture consisting of a base, free-standing vertical wall, and a number of four of sections of shelving._____________________________________________Gross Margin: Gross margin is the difference between what an item costs and what it sells for._____________________________________________Gross Margin Percent: The Gross Margin Percent is calculated as follows: Sales - Cost / Sales = Gross Margin Percent._____________________________________________Gross Margin Return on Investment: A measure of inventory productivity that expresses the relationship between your total sales, the gross profit t margin you earn on those sales, and the number of dollars you invest in inventory._____________________________________________Hardlines: A store department or product line primarily consisting of merchandise such as hardware, housewares, automotive, electronics, sporting goods, health and beauty aids, or toys._____________________________________________Home Improvement Stores: Retailers that combine the traditional hardware store with gardening and lumber._____________________________________________Kiosk: The term kiosk, as related to retailing, refers to a small stand-alone structure used as a point of purchase. This can be either a computer or display screen used to disseminate information to customers; or a free standing, full-service retail location. Kiosks are often found in malls and other high-traffic locations.Layaway: Layaway is the act of taking a deposit on store merchandise for a customer to purchase at a later date._____________________________________________LIFO: Last In, First Out - A method used in rotating inventory._____________________________________________MABD: Must Arrive by Date - The date in which a purchase order must be received at the warehouse.Margin: The amount of gross profit t made when an item is sold._____________________________________________

Markup: A percentage added to the cost to get the retail selling price._____________________________________________Markdown: A planned reduction in the selling price of an item, usually to take effect either within a certain number of days after seasonal merchandise is received or on a specific date._____________________________________________Marketing Calendar: A marketing calendar is a tool used by retailers to show where and when marketing events, media campaigns and merchandising efforts are happening, as well as the results._____________________________________________Master Carton: Several cases being shipped in one package. These can be broken down into the individual cases and sent to stores._____________________________________________Master Pack: Carton received that contains more than one warehouse pack or shipping unit inside it. This is very common in certain orders, such as imports._____________________________________________Merchandise Mix: A merchandise mix is the breadth and depth of the products carried by retailers. Also known as product._____________________________________________Minimum Advertised Price: A vendor’s pricing policy that does not permit its resellers to advertise prices below some specified amount. It can include the resellers’ retail price as well._____________________________________________Odd-even pricing: A form of psychological pricing that suggests buyers are more sensitive to certain ending digits._____________________________________________Off -the-mall Stores: Retailers that offer the same selection of merchandise as a department store but are not connected to a mall.Product Breadth: The product breadth is the variety of product lines offered by a retailer._____________________________________________Product Depth: Product depth is the number of each item or particular style of a product on the shelves. Product depth is also known as product assortment or merchandise depth._____________________________________________Profit Margin: A ratio of profitability calculated as earnings divided by revenues. It measures how much out of every sales dollar a retail business actually keeps

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DECEMBER 2016 RETAIL NEWSin earnings._____________________________________________Quantity Discount: A reduction in price based on the amount purchased. May be offered in addition to any trade discount._____________________________________________Sales Floor: The sales floor is the location of a retail store where goods are displayed and sales transactions take place. For example, the receiving of merchandise takes place in the stock room, but all direct sales and customer interactions are done on the sales floor._____________________________________________Shrinkage: Retail shrinkage is a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud._____________________________________________Softlines: A store department or product line primarily consisting of merchandise such as clothing, footwear, jewelry, linens and towels._____________________________________________ Specialty Stores: Retailers that concentrate on a limited number of complementary merchandise categories and provide a high level of customer service in an area typically less than 8000 square feet._____________________________________________Standard Industrial Classification Code (SIC Codes): A coding system using four digits to identify specific c industrial sectors within the federal government. The first two digits identify the broad industrial sector and the last two digits represent a facility’s specialty within this broad sector._____________________________________________Staple Goods: Staple goods are products purchased regularly and out of necessity. Traditionally, these items have fewer markdowns and lower profit margins. While price shifts may raise or lower demand for certain kinds of products, the demand for staple goods rarely

changes when prices change. _____________________________________________TI/HI: Also called Pallet Pattern. TI refers to the number of cases that make up a tier or layer on a pallet. HI refers to the number of tiers or layers on the pallet. A pallet holding five cases of an item on a layer, stacked four high has a TI/HI of 20._____________________________________________Trade Credit: An open account with suppliers of goods and services._____________________________________________Trade Discount: A discount on the list price given by a manufacturer or wholesaler to a retailer._____________________________________________UCCNET: Uniform Code Council Network - A not-for-profit subsidiary of the Uniform Code Council, provides globally-endorsed item registration and synchronization services that reduce the costs and delays associated with bad data. By utilizing UCCnet services, companies and their trading partners can achieve significant improvements in supply chain efficiency by using and exchanging information that is: accurate, up to date and compliant with industry standards._____________________________________________Vendor Pack: Original packaged quantity or merchandise as shipped from the vendor._____________________________________________Visual Merchandising: Visual merchandising is the art of implementing effective design ideas to increase in-store traffic and sales volume._____________________________________________Wholesale: Wholesale is the sale of goods, generally in large quantity, to a retailer for resale purposes._____________________________________________Working Capital: Liquid assets available to build and grow a retail business. It is measured by current assets minus current liabilities. A positive working capital is needed until the retailer can produce a profit.

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