Retail Industry Foundations Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Retail Industry Foundations flashcards as text
Which retail format is characterized by a very broad product assortment and relatively shallow depth within each category?
Answer: Department store
Department stores offer wide breadth across many product categories but carry fewer SKUs per category than specialists.
In retailing, the term 'shrinkage' refers to:
Answer: Inventory loss from theft, damage, or administrative error
Shrinkage is the difference between recorded inventory and actual on-hand inventory, caused by shoplifting, employee theft, vendor fraud, or errors.
A retailer's 'private label' (store brand) strategy primarily aims to:
Answer: Increase vendor negotiating leverage and improve margins
Private labels allow retailers to capture higher margins and differentiate assortments while reducing dependence on national brand suppliers.
The 'wheel of retailing' theory suggests that new retail formats enter the market by:
Answer: Entering as low-cost, low-margin operators and then trading up over time
The wheel of retailing posits that entrants compete on low price and minimal service, then gradually add services and raise prices, creating space for new low-cost competitors.
Which of the following best describes 'omnichannel retailing'?
Answer: Providing a seamless, integrated shopping experience across all customer touchpoints
Omnichannel retailing integrates physical stores, e-commerce, mobile, and other channels so customers experience a consistent journey regardless of how they shop.
A 'loss leader' pricing strategy involves:
Answer: Selling certain items below cost to attract customers who then purchase other profitable items
Loss leaders sacrifice margin on select items to drive store traffic and increase total basket size with higher-margin purchases.
The 'retail accordion' theory describes retail evolution in terms of:
Answer: Alternating cycles between general merchandise and specialized assortments
The retail accordion theory holds that retailing alternates between broad general-merchandise formats and narrow specialty formats over time.