Merchandising resets are key to a successful merchandising strategy and involve completely reorganizing a category, department, or sometimes even an entire store.

Whether you’re a manager or a rep, knowing the merchandising reset lingo will help you better relate, communicate, and sell into retail locations. Merchandising resets can also impact your product"s shelf placement and proximity to competitors, so it"s important to know when and how they happen in retailers that carry your product.

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A

Action Alley

Area of the store with wider aisles that separate departments and receive more foot traffic.

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C

Case Cards

A piece of signage that slips between or into a case of a product to help promote it. Also know as header cards, case backers or case signage.

Charger Back

Deductions on an invoice taken by the retailer for shortages, damages, freight allowances, or other costs.

CM

Category Manager. A CM oversees and has expertise in the visual merchandising, price and sale of a specific category.

CMA

Calendar Marketing Agreement. A schedule that a retailer agrees to follow to promote a manufacturer"s product.

Color Break

A visual merchandising tactic when products with contrasting packaging colors are put next to each other to make them stand out more.

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Cut-Case Display

Utilizing the original shipping packaging to display the product with the top and/or sides removed.

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Cut-In

To make space on a shelf for new or promotional items by shifting or removing other merchandise. This often occurs between major merchandising resets to introduce items more quickly.

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D

Dead Stock

Stock that has spent too much time on the shelf and has either expired or become obsolete.

DOS

Days of supply. The product amount needed to sustain customer demand between restockings.

Drop

A delivery.

E

Endcap

A display at the end of an aisle.

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ESL

Electronic shelf labeling.

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F

Facing (verb)

To pull products forward to be flush with the front of the shelf. Also called blocking, zoning, straightening, rumbling, fronting or conditioning.

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Facing (noun)

The number of items wide a product is stocked on the shelf. Also called slots.

FEFO

First expired, first out. A stock rotation method of organizing product by freshest in front, oldest in the back. Learn more.

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FIFO

First in, first out. A stock rotation method of putting incoming product in the back of the shelf and pushing older product forward. Learn more.

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Frontage

The section of the store directly facing the street.

I

Inventory Carrying Cost

The total cost of carrying inventory, including rent, utilities, salaries, opportunity cost, and inventory costs related to perishability, shrinkage and insurance.

IPQ

Initial purchase quantity.

K

Keystone Product

A product that is sold for double the wholesale price.

L

Lead Time

The time between order and delivery.

LIFO

Last expired, irst out. A stock rotation method of placing incoming product directly onto the shelf, pushing older product towards the back. Learn more.

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Loss Leader

A product priced below cost to draw customers into a store.

Lumper

A third-party worker hired to load or unload shipments.

M

Main-Line

The main display area in a store.

Mis-Pick

A product that is incorrectly slotted.

Mod

Modular. A category of goods on display, e.g. beer or detergent.

O

Off-Shelf

Any display or promotion that is not part of the regular store, e.g. cardboard POP displays or beverage towers.

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OOS

Out of stock. When a product sells out, leaving an empty slot on the shelf. Also called a stockout. Learn more.

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OSA

On shelf availability.

OSDs

Overs, shorts and damages. Any discrepancy in the product ordered and those received by the retailer.

P

Pack-Out

The total number of packages of an item on a shelf when fully-stocked, shelf capacity or holding power.

PDQ

Predetermined display quantity. A pre-made display unit that requires little to no assembly. Also called a sidekick, shipper, or pre-pack.

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POS

Point of sale. Where purchases are made in the store. Also called a cash wrap or checkout counter.

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R

Reverse Pick

Scanning items in bins to see if they will fit out on the shelf, rather than scanning items on the shelf to see if there is stock in the bin.

S

Scratch

A product removed from an order because it was out of stock at the manufacturer or warehouse.

Self-Facing Tray

A shelf management solution that pushes new product forward each time a product is removed, e.g. cans of soup roll forward to fill the empty space each time a can is taken out.

Shelf Tag

A product"s price tag, affixed to the shelf it sits on.

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Shelf Talker

A sign attached to a shelf to attract a customer"s attention to a certain product or promotion. Also called a dangler.

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Shrinkage

The difference between the stock you actually have and what you have on paper. This occurs due to employee theft, shoplifting, human error or poor inventory management.

SKU

Stock Keeping Unit. Assigned by the retailer for stock-keeping and internal purposes to identify the manufacturer, style, size, color, and unit price of a piece of merchandise. Typically eight alpha-numeric digits and differs retailer to retailer.

Slot

Place for one product to be stocked on a shelf.

Slotting Fee

A fee that some retailers charge for each slot on a shelf a product occupies. Learn more.

Stock Rotation

Organizing products based on freshness and expiration date. Learn more.

T

Top Stock

When extra stock is kept above shelves on the retail floor instead of in the backroom.

TPR

Temporary price reduction.

Turn

The number of times a product completes a cycle of moving through a warehouse in a year.

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U

Unit Load

Items arranged or packaged as a single unit on a pallet for easy storage and transportation

UPC

Universal Product Code. A number with 12 digits that is assigned to each item and is the same across all retailers. Also usually associated with a unique EAN barcode.