Understanding Retail Terminologies

Lesson 08 – Retail Fast Track Course

 Get comfortable with industry jargon for effective communication with retail partners.

A. Point of Sale (POS)

The point of sale refers to the place where a retail transaction is completed — where payment is made for goods or services. Modern POS systems, like those used by Starbucks, do more than just process transactions; they also track inventory, manage employees, and offer customer relationship management features.

B. Planogram

A planogram is a visual plan that shows how and where specific retail products should be placed on retail shelves or displays to increase customer purchases. Retailers like Target use detailed planograms to maximize shelf impact and sales.

C. Endcap

An endcap is a display for a product placed at the end of an aisle. It’s a prime retail space as it attracts customer attention. Stores like Walmart strategically use endcaps for promotional or high-margin items.

D. SKU (Stock Keeping Unit)

An SKU is a unique code consisting of letters and numbers that identify each product a retailer stocks. It helps retailers track inventory and sales. Amazon, for instance, manages millions of SKUs to keep their vast inventory organized.

E. DSD (Direct Store Delivery)

DSD is a distribution strategy where suppliers deliver products directly to the retail store, bypassing the retailer’s distribution center. Many beverage companies like Coca-Cola and PepsiCo use DSD to ensure their products are always stocked

Do you have a product and would like to speak with us?