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 of the following is the primary purpose of a retail 'loyalty program'?
Answer: To capture customer purchase data and incentivize repeat buying
Loyalty programs collect behavioral data on identified shoppers while offering rewards that increase purchase frequency and basket size.
In retail analytics, 'conversion rate' measures:
Answer: The proportion of store visitors who complete a purchase
Retail conversion rate equals transactions divided by total visitor count, indicating how effectively store traffic is turned into sales.
Which retail channel type is best described as a retailer that sells directly to consumers through its own website without any physical stores?
Answer: Pure-play e-commerce retailer
A pure-play e-commerce retailer operates exclusively online with no brick-and-mortar presence.
The term 'assortment planning' in retail refers to:
Answer: Selecting which products and how many SKUs to carry in each category
Assortment planning determines the breadth and depth of merchandise a retailer will stock to meet target customer needs and financial goals.
A 'category captain' in retail is typically:
Answer: A leading vendor given advisory responsibility for managing an entire product category
Retailers designate a dominant supplier as category captain to provide data-driven recommendations on assortment, pricing, and shelf placement for the whole category.
Which of the following best describes the 'retail format' known as a 'warehouse club'?
Answer: A membership-based retailer selling bulk merchandise at low margins in a no-frills environment
Warehouse clubs like Costco and Sam's Club charge annual membership fees and offer large pack sizes at thin margins, relying on high volume and fee income.
In merchandise financial planning, 'open-to-buy' (OTB) represents:
Answer: The dollar amount of inventory a buyer is authorized to purchase during a planning period
OTB is the budget remaining for new merchandise purchases calculated as planned inventory minus merchandise on order and already received.