The GMS glossary

Find out all the key definitions of mass retailing and national brand sales forces.

Click on the letter of your choice to access the definitions.

After-sales marketing

After-sales marketing

All the marketing strategies and activities implemented after the purchase to boost customer satisfaction and encourage loyalty.

Direct marketing

Direct marketing

A marketing approach that involves communicating directly with targeted consumers, often via letters, emails or telephone calls, to promote offers or gather information.

Merchandising

Merchandising

All the sales practices and techniques used to promote the sale of products in stores.

Visual Merchandising

Visual Merchandising

Using the visual presentation of products in-store to attract customers' attention and enhance the shopping experience.

N

N

Annual negotiation

Annual negotiation

An annual process during which retailers and suppliers meet to discuss and agree commercial terms for the coming year. These negotiations generally cover purchase prices, payment terms, promotions, volume discounts, and other logistical aspects.

O

O

Promotional operation (OP)

Promotional operation (OP)

Temporary campaign to increase the visibility and sales of a product or product category, often accompanied by price reductions or other incentives.

P

P

PAN (National Activity Plan)

PAN (National Activity Plan)

A strategy that reflects the operations negotiated during the year with a brand at national level.

RAP (Regional Activity Plan)

RAP (Regional Activity Plan)

A strategy that reflects the operations negotiated during the year with a brand at local level.

PCB (By how much)

PCB (By how much)

Information indicating the number of sales units available per carton, used for inventory management and order planning.

PDL (Linear share)

PDL (Linear share)

Ratio calculated by dividing total product shelf space by total product category shelf space, used to evaluate the space allocated to a specific product in a store.

PDVC (front-of-box promoter)

PDVC (front-of-box promoter)

Staff responsible for the promotion and sale of specific products located near checkouts, a strategic point for impulse purchases.

POS (point-of-sale advertising)

POS (point-of-sale advertising)

Advertising or marketing material used at the point of sale to influence consumers' purchasing decisions.

Differentiate your brand with the right POS!

PMC (Price of Least Consequence)

PMC (Price of Least Consequence)

An indicator that monitors the lowest price at which a product is sold in a market or retail outlet. This price is particularly important as it can significantly influence consumers' purchasing decisions.

POS (Plan d'occupation des sols)

POS (Plan d'occupation des sols)

Document or strategy governing the use of space in a sales outlet, crucial for optimizing space and promoting products effectively.

Consumer panels

Consumer panels

Consumer groups that regularly provide information on their purchasing habits and preferences, enabling companies to understand consumer trends and adjust their marketing strategies.

→ Discover the difference between consumer panels and distributors.

Distributor panels

Distributor panels

Groups of outlets that regularly provide data on their sales, inventory and other operational aspects, used to analyze market trends and measure product performance.

→ For a more in-depth look at the subject, we invite you to read our article on distributor panels.

Medium basket

Medium basket

Statistical indicator representing the average value of purchases made by a consumer during a store visit.

Picking

Picking

Place reserved for a product in a warehouse where it is permanently stored, facilitating logistics and inventory management.

Sales Action Plan (SAP)

Sales Action Plan (SAP)

Strategy defining sales objectives and the resources to be deployed in a sales outlet to achieve these objectives.

Overall floor plan

Overall floor plan

Detailed plan showing the spatial layout and arrangement of the various departments and zones in a store or chain of stores.

Planning

Planning

The process of organizing and preparing the activities needed to achieve specific objectives, crucial in sales management and distribution.

Planogram

Planogram

Schematic representation of the layout of a department or sales area, showing where and how products should be arranged. It helpsoptimize product presentation in the store.

Pricing policy

Pricing policy

Also known as "pricing", the pricing policy covers all decisions taken to determine the price of a product. Several pricing policies can be chosen, depending on the brand's commercial objectives.

Product appeal

Product appeal

Product offered at a very low price to attract customers to a point of sale, often used to stimulate traffic and encourage the purchase of other, more profitable products.

Giraffe product

Giraffe product

An informal term for a product that "stands out from the crowd" because of its popularity or appeal, clearly distinguishing itself from other similar products in terms of sales or visibility.

Flagship product

Flagship product

A product strongly associated with a brand or store, often perceived as representative of the quality or identity of the offering. It's the brand's showcase, which is why it' s important to choose it well (or not).

Pirate promotion

Pirate promotion

Promotions negotiated directly with stores throughout the year, according to marketing plans and activations, without prior planning by the head office.

Flyer or negotiated promotions

Flyer or negotiated promotions

Promotions are planned and formalized between brands and distributors (central purchasing agencies, chains), generally during annual negotiations, before they are rolled out in-store, usually detailed in brochures or advertising leaflets. To be successful, promotions must be prepared in advance.

Proxi

Proxi

Local store offering convenience goods and services, often located in dense residential or urban areas.

Horizontal presentation

Horizontal presentation

Horizontal arrangement of products on shelves, making it easier for consumers to compare similar products.

Vertical presentation

Vertical presentation

Vertical arrangement of products on shelves, often used to maximize the use of vertical space and improve visibility of different product levels.

R

R

IR (Immediate discount)

IR (Immediate discount)

A price reduction applied immediately at the time of purchase, enabling consumers to benefit instantly from a lower price on the product concerned.

Discounts

Discounts

Price reduction granted immediately on the selling price of a product, generally to encourage rapid or volume purchases.

Rack

Rack

Metal frame on which pallets can be stored in reserve, used in warehouses and backrooms to optimize storage space.

Ranking

Ranking

Ranking of products, brands or stores according to various criteria such as sales, popularity or performance, used to assess competitiveness and efficiency.

Radius

Radius

Section in a store where a specific category of products is displayed and sold, often organized to facilitate purchasing and enhance the customer experience.

Competition survey

Competition survey

Analysis of competitors' strategies, prices and product offerings, used to adjust own sales strategies.

Shelf space survey

Shelf space survey

The process of measuring and analyzing the space allocated to different products or product categories on a store's shelves. It provides information on the presence of their products and those of their competitors in the store.

Price list

Price list

Collection and analysis of prices for specific products at different points of sale, used to compare and adjust pricing strategies.

Record of attendance

Record of attendance

Check product availability in store, in particular to ensure that promotional or key items are in stock and visible.

Deferred discount

Deferred discount

A form of promotion where the discount is applied only after the initial purchase, often in the form of a credit for future purchases or a refund after proof of purchase has been sent.

Rotation

Rotation

Frequency with which a product is sold and replaced over a given period, often used to measure inventory efficiency.

Stock rotation

Stock rotation

Frequency of stock turnover on shelves, important for the management of perishable products in particular.

Breaking

Breaking

Situation where there is no stock on the shelf. The label of the missing product must be present for it to be considered an out-of-stock situation.

Restocking

Restocking

Procedure that enables the department to be correctly restocked, taking into account available stock, current orders and sales turnover, essential for maintaining an adequate offer.

Referencing

Referencing

Procedure for integrating a product into the retailer's assortment, involving the selection of products to be offered in stores according to defined criteria.

Relocation

Relocation

The process of reorganizing or rearranging products in a store, with the aim of optimizing shelf layout and the shopping experience for consumers.

Network

Network

A group of interconnected entities (stores, suppliers, distributors) involved in the distribution and sale of products or services to the end consumer.

Independent network

Independent network

A group of retailers or distributors who operate independently, but who may share certain resources or strategies for mutual benefit. For example, Leclerc, Intermarché or Système U are all independents.

Distribution network

Distribution network

All the entities involved in the transfer of a product from the manufacturer to the end consumer, including distributors, wholesalers and retailers. To increase sales, it's important to manage your distribution network.

Integrated network

Integrated network

A distribution network where all entities, such as sales outlets, are owned and operated by the same company, allowing total control over operations and strategy. All employees are salaried by the company. For example, Carrefour and Cora are integrated chains.

S

S

SCA (Société Coopérative d'Approvisionnement)

SCA (Société Coopérative d'Approvisionnement)

Purchasing center for E.Leclerc, managing purchasing negotiations for the group and its affiliates.

SKU (Stock Keeping Unit)

SKU (Stock Keeping Unit)

Unique identifier assigned to each product in stock, used for inventory tracking and stock management.

SM (Supermarket)

SM (Supermarket)

Medium-sized store format offering a range of food and non-food products, typically smaller than a hypermarket but larger than a grocery or convenience store.

SRP (threshold for resale at a loss)

SRP (threshold for resale at a loss)

Regulations that define the minimum price at which a product can be sold, corresponding to the purchase price plus the costs associated with its sale, to prevent unauthorized sales at a loss.

Sell-in

Sell-in

Volume of products sold by the brand to a distributor and/or retailer, representing sales made at the entrance to the distribution chain.

Sell-out

Sell-out

Volume of products sold by the distributor to the final consumer, highlighting sales at the exit of the distribution chain (the checkout). Also known as checkout or datasharing.

Saturation threshold

Saturation threshold

The point at which a further increase in product visibility or availability no longer results in a significant increase in sales, often due to a perceived glut.

Visibility threshold

Visibility threshold

Minimum level of product exposure necessary for consumers to notice it effectively at the point of sale.

Shop-in-shop

Shop-in-shop

Dedicated space within a department store where a specific brand can present and sell its products, operating as a stand-alone store within a larger store.

→ Explore best practices for shop-in-shop in supermarkets.

Checkout

Checkout

Data collected at points of sale to record the number of products sold, used to analyze product performance and adjust stock levels.

Skeleton

Skeleton

Typical layout containing one consumer sales unit (CSU) of stock for each facing, including the entire assortment handled by the store.

Stock Turnover

Stock Turnover

Indicator of the frequency with which stock is renewed or sold over a period, used to assess the effectiveness of inventory management.

Stop-rayon

Stop-rayon

Small sign attached to a shelf to give additional information on products, often used to promote special offers or unique features.

Stratum

Stratum

Internal classification of sales outlets (supermarkets, hypermarkets, mini-markets, etc.) based on the number of items (store assortment) that can be ordered by the store for a product range. It varies from store to store, depending on the size of the department.

→ To delve deeper into the subject of store strata.

Lost Leader' strategy

Lost Leader' strategy

Pricing strategy where a product is sold at a low price to attract customers in the hope that they will buy other higher-margin items, used to stimulate customer traffic and cross-selling.

T

T

Destruction or breakage rate

Destruction or breakage rate

Rate calculated by dividing the number of products sold by the number of products not sold, used to evaluate the effectiveness of inventory management and the reduction of losses.

Breakage rate

Breakage rate

Indicator that measures the frequency with which products are out of stock at a point of sale. This rate is crucial, as out-of-stocks can lead to a direct loss of sales and negatively affect customer satisfaction. A high out-of-stock rate may indicate problems in the supply chain or inefficient inventory management, requiring adjustments to optimize product availability and maximize revenues.

Theatrical

Theatrical

Staging the commercial offer in a point of sale, using visual and scenographic elements to create an immersive and attractive shopping experience for customers.

Sales tour

Sales tour

A series of visits planned by a sales representative to different points of sale to promote products, take orders or maintain customer relations, crucial for developing sales and customer loyalty.

Trade Marketing

Trade Marketing

All the marketing strategies and tactics implemented by a company at distribution channel level, aimed at increasing demand at the distributor, retailer or wholesaler, rather than at the end consumer. Trade marketing focuses on relationships with business partners and the creation of promotions or product presentations that will stimulate sales and maximize the brand's impact at the point of sale.

Gondola head

Gondola head

The end of a department in a store, often used for promotions or specific product highlights, designed to maximize the visibility and appeal of the items on display.

→ Find out how to convince your distributors to put your brand at the top of their shelves.

U

U

CSU (Consumer Sales Unit)

CSU (Consumer Sales Unit)

Designation for products as sold to the end consumer, usually in their smallest packaged sales unit, used for inventory management and sales planning.

Universe

Universe

Broad category under which various products or brands are grouped in a store, based on their use or type, such as the "beauty" or "food" universe.

V

V

VSS (Surface Sales)

VSS (Surface Sales)

A measure of sales area productivity, calculated by dividing sales by floor space, used to evaluate the efficiency of sales area utilization.

Customer value

Customer value

A measure of the total financial contribution a customer makes to a company over the course of their relationship with it, including direct purchases and indirect effects such as referrals and engagement, which can generate additional revenue.

Semi-detached sale

Semi-detached sale

A sales strategy involving the sale of two products or services together, often at a reduced price compared with buying the elements separately, used to increase the average value of orders and promote complementary products.

Sale at a loss

Sale at a loss

The practice of selling a product at a price lower than its purchase cost, often regulated to avoid unfair competition, but sometimes used in specific promotional strategies to attract customers or clear excess inventory.

Y

Y

Yield Management

Yield Management

Price management technique used mainly in the service industries to maximize revenues by adjusting prices according to anticipated demand and availability of products or services, thus optimizing profits by selling the right product to the right customer, at the right time and at the right price.

Z

Z

Catchment area

Catchment area

Geographical area from which the majority of a store's customers originate, determined by criteria such as distance, demographics and consumer habits, essential for marketing planning and store location. The catchment area is also of interest to brands.

Primary zone

Primary zone

Geographical area closest to a point of sale where the majority of regular customers are located, generating the highest sales volume due to its proximity and the store's accessibility.

Secondary zone

Secondary zone

The area surrounding the primary zone attracts customers who visit the store less frequently, making a significant contribution to overall sales volume even though these customers are less frequent.

Tertiary zone

Tertiary zone

A more remote geographical area that occasionally attracts customers, potentially for specific purchases or special occasions, representing a smaller but strategically important part of the target market.

Zoning

Zoning

Organization of the sales space into different zones to optimize the customer's shopping experience and sales efficiency, using merchandising and presentation techniques to guide buying behavior and maximize interaction with products.