DECA Retail Operations 2

Question 1

A retailer notices that a best-selling product has a 90-day supply on hand. What should the buyer do first?

Accepted Answer

Reduce reorder frequency to avoid overstocking

Answer

With 90 days of supply on hand, the buyer should reduce reorder frequency to prevent further overstocking and tied-up capital.

Question 2

Which shrinkage category typically accounts for the largest share of retail losses?

Accepted Answer

Employee theft

Answer

Employee theft consistently accounts for the largest share of retail shrinkage, often exceeding shoplifting losses.

Question 3

A store's sell-through rate for a seasonal item is 40% after four weeks. What action is most appropriate?

Accepted Answer

Implement a markdown to improve sell-through

Answer

A 40% sell-through rate after four weeks is below target, so a markdown is used to stimulate demand and reduce end-of-season leftover.

Question 4

What does the term 'planogram' refer to in retail operations?

Accepted Answer

A visual diagram specifying product placement on shelves

Answer

A planogram is a visual schematic that dictates exactly how and where products should be displayed on retail shelving.

Question 5

Which metric best measures how efficiently a retailer is using its selling floor space?

Accepted Answer

Sales per square foot

Answer

Sales per square foot directly measures the revenue generated for every square foot of selling space, making it the standard space productivity metric.

(DECA) Distributive Education Clubs of America Practice Test

(DECA) Distributive Education Clubs of America Practice Test

DECA Retail Operations 2