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 metric measures the productivity of retail floor space by comparing net sales to total selling area?
Answer: Sales per square foot
Sales per square foot is a key space-productivity KPI calculated as net sales divided by total retail square footage.
In retail supply chain management, 'cross-docking' refers to:
Answer: Transferring inbound shipments directly to outbound vehicles with minimal warehousing
Cross-docking moves merchandise from receiving docks to outbound trucks quickly, reducing storage costs and improving replenishment speed.
Which of the following is a characteristic of 'everyday low pricing' (EDLP)?
Answer: Consistently low prices with minimal reliance on temporary promotions
EDLP strategies maintain stable, competitive prices year-round rather than cycling between regular and sale prices.
A 'planogram' in retail operations is best described as:
Answer: A visual diagram specifying how and where products should be displayed on shelves
Planograms guide store associates on exact shelf placement of each SKU to maximize sales, comply with vendor agreements, and maintain visual consistency.
Which of the following best defines 'anchor tenant' in the context of a shopping mall?
Answer: A large, well-known retailer that generates significant traffic for the entire center
Anchor tenants like department stores or big-box retailers draw consumers to the mall, benefiting smaller co-tenants through spillover traffic.
The 'retail life cycle' concept suggests that retail formats experience stages analogous to:
Answer: The product life cycle of introduction, growth, maturity, and decline
Like products, retail formats move through introduction, accelerated development, maturity, and decline phases over time.
In retail, 'markdown money' (also called 'vendor allowances') is best described as:
Answer: Payments from vendors to retailers to compensate for markdowns on their products
Markdown money is a negotiated payment from suppliers to retailers to offset the cost of reducing prices on slow-moving or excess inventory.