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GLOSSARY

Get to know the jargon.

Whether you're new to the Natural Food Industry or need a refresher, here are the industry-specific definitions for words most commonly used.

A-spot

The best-selling locations for off-shelf grocery merchandising.

Why is it Important?

ACV

All-commodity volume or ACV represents the total annual sales volume of retailers that can be aggregated from individual store-level up to larger geographical sets. This measure is a ratio, and so is typically measured as a percentage (or on a scale from 0 to 100).

Why is it Important?

Alert - Quality Issue

When we notice that the quality of the product does not meet a brands standard (packaging or content not to to standard)

Why is it Important?

When the quality of each unit is not up to retail standards, it affects the brands integrity on shelf and creates more risk for missed reorders, holes, and discontinuation.

Alert- Discontinuation

When our team sees a discontinue (disco) tag on a product

Why is it Important?

When a discontinuation tag is discovered, it creates an action needed to alert the findings, determine the why, or create a plan for maintaining the shelf space affected.

Alert- Major Spoilage

When we notice more three or more cases of product that is out of date

Why is it Important?

When spoilage is in larger quantities, it affects the brands quality and integrity on shelf and creates more risk for missed reorders, holes, and discontinuation.

Alert- New Reset (submit only once per account)

When we notice that the primary set's shelf planogram has been adjusted back to a planogram or set to a new planogram.

Why is it Important?

When a reset to a shelf or category has been discovered, this indicates a need for communication for the brand manager and brand and an awareness in order to alert of any affected changes to partners shelf placement.

Alert- Regular Pricing Change

When we notice a price change on the sku's tag

Why is it Important?

Price is a key success metric for brands to stay competitive and relevant in their categories. When changes or updates in price or tags occur, changes need to be communicated quickly to either confirm the pricing change or support solutions needed for correction.

Alert- Warehouse OOS

When a store buyer/store documents indicates an OOS is due to the warehouse OOS

Why is it Important?

Warehouse OOS can affect shelf positioning, distribution, and promo placement. When a warehouse OOS occurs, it requires a strategy for support to maintain shelf tags while the OOS gets resolved.

Allocated Items

Products are auto-shipped to stores for either
Required-Off-Shelf changeover displays, New Items to work in, or Seasonal Items to feature. (AKA Auto-ship and Plus-outs)

Why is it Important?

TBD

Authorization

Retailer permission to allow a specific product or SKU into a chain of stores

Why is it Important?

TBD

BOH

Back of House (Term for the back area, Team Members Only)

Why is it Important?

TBD

Backstock

Inventory that is kept palletized in boxes in the back room until it is needed to replenish displays on the sales floor.

Why is it Important?

TBD

Baler

Machine in receiving to discard and compress cardboard.

Why is it Important?

TBD

Brand

Client or customer that we serve

Why is it Important?

TBD

Brand Block

When a product line is placed together. (either vertically or horizontally)

Why is it Important?

Brand Manager feedback or support needed

Ex. Need IRCs, Need Eductional Tools, POS Materials, Verification or Advice. Stuff that is currently showing up in Slack

Why is it Important?

Need to confirm business process here : is this a request for POS tools or a dialogue around strategy?

Broker

The broker is an agent that helps to connect the manufacturer, distributor, and retailer in the niche for a commission. Thus, the broker works at getting markets. It is left to the manufacturer, distributor, and retailer to discuss the terms of their agreement and see how they can work together to do business.

Why is it Important?

TBD

Case Stack Deal

A promotional perk for a % discount is applied at the time of the purchase order for a certain quantity of cases. (AKA an MCB or Hip Pocket deal)

Why is it Important?

Changeover

(Market Special, Promo A/B, Change Out A/B) The change of sale/promotional items from the beginning of each month (A) to the middle (B); usually 2 week periods, maybe 3 weeks.

Why is it Important?

TBD

Churn

The churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity. It is most commonly expressed as the percentage of service subscribers who discontinue their subscriptions within a given time period.

Why is it Important?

TBD

Cold Case

A refrigerated display case is used for selling items that are kept cold.

Why is it Important?

TBD

Cold Placement

A placement option for ambient beverages that typically improve velocities when sold cold

Why is it Important?

Cold is sold! When a product that can be sold cold is placed in a cold placement, it provides exposure to customers looking for cold products.

Commission

In a fixed-commission structure, retail store owners give salespeople a lump sum or a set percentage of a product's sales price when they make a sale.

Why is it Important?

Core Audit

An activity used to provide transparency to brands about their current retail shelf conditions.

Why is it Important?

TBD

Corrected OOS

When a temporarily unavailable item is made available by packing out product to the shelf. The product is now available for customer purchase.

Why is it Important?

It is important to correct OOS to provide consistent sales and visibility to the customer. High rates of OOS can lead to lost sales and customers.

Cost of Customer Acquisition

Customer acquisition cost (CAC) is the cost related to acquiring a new customer.

Why is it Important?

TBD

Customer Feedback

Customer feedback is information provided by customers about their experience with a product or service. Its purpose is to reveal their level of satisfaction

Why is it Important?

TBD

DC

This is an acronym for a distribution center. A distribution center is a warehouse or specialized building that stores a set of products to be distributed to retailers (or directly to consumers).

Why is it Important?

TBD

DSD

Direct store delivery (DSD) means delivering products from a supplier or distributor directly to a store, bypassing the retailer's distribution center. DSD tends to also put the unloading and stocking of products into distributors' hands, instead of the stores'.

Why is it Important?

TBD

Display

A display is a space used to promote brands/SKUs in a location other than it's primary location. They are typically used to showcase products in an appealing way, to attract customers and encourage them to make a purchase.

Why is it Important?

TBD

Display - Branded (Shippers / Racks/ Coolers/ Clip Strips)

A merchanding unit or display that has been provided by the Brand

Why is it Important?

TBD

Display - Checkstand

MAY NEED ADDITIONAL DEFINITION: Register Placement

Why is it Important?

TBD

Display - Cooler or Coffin

Cold display placements that are fixed structures in a store and provide fluid and rotated display opportunities

Why is it Important?

TBD

Display - Grocery End Cap

The display end of a grocery aisle containing but not limited to an endcap or side cap

Why is it Important?

TBD

Display - Outside Dept Cross- Merched (Deli, Bakery, Produce, Meat)

A placement where the brand category would typically not be found but is cross merchandised for consumer interaction

Why is it Important?

TBD

Display - Sidestack/ Casestack / Barrel/ Dump in / 4-sided Display

Display placements that are all fixed structures in a store and provide fluid and rotated display opportunities

Why is it Important?

TBD

Display Facings

The number of identical products (or same SKUs) on a shelf turned out toward the customer.

Why is it Important?

TBD

Distributor

A distributor is an entity that purchases bulk amounts of product from a manufacturer and distributes it either directly to consumers or to retailers who then sell to the consumer.
Distributors are also sometimes called “Wholesalers.”

Why is it Important?

Exit Plan

Items left over from a previous changeover that did not sell well, and are left off-shelf to sell down and remove back to their primary location, or back-stock.

Why is it Important?

TBD

Eye-Level Placement

Shelf real estate in the middle that is easily seen, where guests gravitate the most and translate into a higher velocity of sales.

Why is it Important?

TBD

FIFO

First in, First Out (Rotate product so that soonest date is first out)

Why is it Important?

TBD

FOH

Front of House (Grocery floor and store sales area)

Why is it Important?

TBD

Facing

the number of SKUs of a product that are visible at the front of a retail store shelf; generally, high-volume categories will be allocated more shelf facings than low-volume categories.

Why is it Important?

Brands & Manufacturers count facings to understand share of shelf. The more facings a SKU has on a shelf equals more holding power for a brand. This results in a lower risk for OOS.

Facing/Fronting

Pulling all products to the edge of the shelf; presentable for purchase.

Why is it Important?

TBD

Facings Added

Increasing a brands share of shelf by adding facings to either on an existing primary placement or a display placement

Why is it Important?

Adding Facings to Shelf Placements or Display increases on the shelf holding power of a brand. Increased shelf holding power reduces OOS and drives velocity

Foyer

Entrance areas for merchandising. (Often seasonal/holiday based, Large promo feature, or Case Stacks for fast selling never-out items).

Why is it Important?

TBD

Free-Fill

Product brought in for free and worked in for sale at an account.

Why is it Important?

TBD

Front-End

Everywhere at checkout, including register merchandising shelves. (Ask if either grocery or the Front-End team maintains it, great talking point open)

Why is it Important?

Good Back-stock

Back-stock that a store will definitely sell-through, and therefore, is no worry about having on hand.

Why is it Important?

TBD

Grocery Communication Board

A series of clipboards hanging on the wall in the back of the house that includes most of the current grocery team and store information; such as - Team Schedule, UNFI Out-of-Stock Report, Never Out List, Merchandising Planner, Merchandising Map, etc…

Why is it Important?

TBD

Headquarter Approved Promo

A promotion that is set up with the brand (or brand's broker) in advance as part of their yearly promotional calendar

synonyms: National Off-Shelf, Distributor Promo, Regional Promo

Why is it Important?

A preplanned retailer or distributor paid promotion period where brands forecast sales, movement, and velocity from their warehouse in order to drive ACV and remain competitive in their category.

High Margin Items

Products that make more profit.

Why is it Important?

TBD

IRC

"Instant redeemable coupon" A coupon that can be adhered to a product and used immediate upon purchase

Why is it Important?

When IRCs are placed on products, it incentivizes customers to purchase a new item through a desire to have a lower price

IRI

IRI (Information Resources, Inc.) is a data analytics and market research company, headquartered in the U.S. which provides clients with consumer, shopper, and retail market intelligence and analysis focused on consumer packaged goods (CPG), retail, and healthcare industries.

Why is it Important?

TBD

In-Store Relationship

Relationships with individuals in a store-level account

Why is it Important?

TBD

Independent/Indies Market

independent grocery stores are food retail establishments whose owners operate fewer than four outlets simultaneously.

Why is it Important?

TBD

Jump or Jumper Shelf

A shelf in the middle that breaks a featured brand display in order to add a complimentary item.

Why is it Important?

KPI

KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions.

Why is it Important?

TBD

KeHe

A National wholesale food distributor.

Why is it Important?

Line

A specific collection of products within a brands offerings that includes a number of indivudal SKUs

Why is it Important?

Brands often look for specific actions based on lines within their full product list. For example: main focus on Bar Line

Low Margin Items

Typically, products sell extremely fast and are priced at an everyday value. (Tactic, merchandising High and Low together, AKA Loss-leaders)

Why is it Important?

TBD

MCB

Manufacturer Charge-Back. (Charge to a manufacturer based on quantity ordered)

Why is it Important?

TBD

Market Penetration

Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service.

Why is it Important?

TBD

Market Team

Grocery, Whole Body, and Specialty Departments combined.

Why is it Important?

Natural Food

food that has undergone a minimum of processing or treatment with preservatives.

Why is it Important?

Never-outs

Items that are selling the most. (Grocery: Top 100, Dairy: Top 50, every 4 weeks grocery labels the sale tags with green dots)

Why is it Important?

TBD

New Item

a product that is new to a brands offerings

Why is it Important?

TBD

New Item Feature

Displaying a new item off-shelf, either regular or sale price.

Why is it Important?

TBD

New Placement

NEW Primary or Display location within the store. Any number skus added in one location is considered a Placement.

Why is it Important?

Adding a "New Placement" gives a new subset of customers visibility to your brands product which can lead to an increase in velocity. "New Placements" also increase the amount of available inventory within the store increasing their holding power between deliveries which can also drive velocities

OI

Off Invoice (a deal given to the retailer at the time of purchase from the distributor)

Why is it Important?

TBD

OOD

Out of Date (Product that has expired; spoiled, use by or best by)

Why is it Important?

TBD

OOS (Out of Stock)

When a product is (temporarily) unavailable for sale. This can result due to higher than expected sales or other delays between manufacturers and distributors.

Why is it Important?

OOS can be an indicator of potentially lost sales for a partner. High rates of OOS can point to issues such as imporper ordering at retail or warehouse inventory issues.

OTHER Placement

Ex. Keeping track of multiples of the same type of placment IE this was added so that we can keep track of how many different check stands were added

Why is it Important?

TBD

Off promo display gains

Off Promo displays (those things we got on our own)

Why is it Important?

A display a Dirty Hands team member gained or built on their own with the approval of store decision makers on behalf of a brand

Out of Stock (OOS)

When a product is (temporarily) unavailable for sale. This can result due to higher than expected sales or other delays between manufacturers and distributors.

Why is it Important?

POG

Plan-o-Gram, AKA schematic (the layout of how products are to be arranged on the shelf)

Why is it Important?

TBD

POP

Point of Purchase

Why is it Important?

TBD

POS

Point of Sale

Why is it Important?

Pack Out

Pack Out refers to the activity of filling a shelf or display. Dirty Hands team members are also instructed to check product dates and rotate product.

Why is it Important?

The frequency of Pack out can be an indicator of a brand/SKU's velocity. PackOut provides transparency into the inventory a retailer was holding and could indicate potential lost sales.

Perimeter

Grocery end-caps, side-caps, and all merchandising space outside the grocery aisles.

Why is it Important?

Perimeter Walk

Physically walking around the perimeter of a store and looking for opportunities. For example, accessing the Off-Shelf locations. (Does the product make sense? Is it abundant? Is it on sale? Is it a seasonal feature? Is it a Never-Out, Is it an Exit Item? Is the signage correct? Is grocery attending to it? Is it in date? Is there a way to improve it?

Why is it Important?

TBD

Placement

Primary location in store (planogram) and Displays w/in store.

Why is it Important?

TBD

Placement

Primary location in store (planogram) and Displays w/in store.

Why is it Important?

Gaining and maintaining multiple placements in a store will attract more customers and sales by giving customers for opportunity to interact with the brand

Placement Location

The specific location with a store where a group of products is sold

Why is it Important?

Placements create more customer interactions, supporting sales and velocity

Primary Ambient Placement

Shelf Stable or Dry Shelf Brand's Primary Placement

Why is it Important?

TBD

Primary Frozen Placement

Frozen brand's primary placement - freezer.

Why is it Important?

TBD

Primary Placement

The location in a store that a product can always be found regardless of promotion or other displays. These are typically part of a planogram (POG) and therefore cannot be changed.

Note: For Ambient Brands who target the cold box i.e Water Brands - their primary placement is only on the dry shelf. Cold Placements would be considered Displays

Why is it Important?

Primary placement should always be a priority for packing out. This location is considered the "home" and traditionally where customers first shop for the product.

Primary Refrigerated Placement

Perishable Brand's Primary Placement

Why is it Important?

TBD

Priorities

Otherwise known as brand priorities or specific brand requested focuses

Why is it Important?

Promo

A temporary price reduction set up with a distributor and/or retailer.

Why is it Important?

A preplanned retailer or distributor paid promotion period where brands forecast sales, movement, and velocity from their warehouse in order to drive ACV and remain competitive in their category.

Promo

Promotional sale items throughout the store typically last 2-3 weeks.

Why is it Important?

TBD

Promo Tags on All Placements

Clear pricing for customers on the promotional price for a brand in store. This should be clear for any placement throughout the store.

Why is it Important?

When promo tags are correct and placed properly, it drives more visibility to consumers to be able to interact with the product, resulting in more sales.

Pull Tag or Pick Tag

A small tag on every item delivered that has an array of information from the distributor; (Distributor name, Store location, Product name, Case quantity, UPC/product barcode, Order date, Products department, etc..)

Why is it Important?

TBD

ROI

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Why is it Important?

TBD

Region

Territory often includes multiple metros (Northern California, Pacific Northwest, Northeast)

Why is it Important?

TBD

Reporting

Data collection based on the performance of our field teams

Why is it Important?

Required-Off-Shelf

Allocated products that are required to be on display for a promo period. (These are most often paid for by the brand; therefore, our support of getting the best-required off-shelf location, quantity, and presentation is vital to the brand)

Why is it Important?

TBD

Retail Execution

Retail execution is a business process designed to ensure that a consumer goods manufacturer's overall brand strategy is executed in retail stores.

Why is it Important?

TBD

SKU

one specific item that is produced and sold by a brand. Different sizes of the same product would be considered separate SKUs

Why is it Important?

Important information needed to provide best service possible for a brand

SKU Flow

A brand's preferred order and number of sku facings on shelf typically starting left to right.

Why is it Important?

Data from this information combined with sales can help brands validate strategies around flavor, packaging, size, price.

SKUs Carried

The list of SKUs that a certain store has available for purchase

Why is it Important?

Important information for brands to help calculate ACV as well as pinpoint opportunity stores for DH

SOP/OTS

Standard Operating Procedure / Order-to-Shelf

Why is it Important?

TBD

SPINS

SPINS provides Key Account data for the retailers you're doing business with and provides insights into their business and category performance. With Key Account data, you see category data, competitive performance, growth drivers, and in-demand attributes for that retailer.

Why is it Important?

TBD

Sale Price

A sale price is the discounted price at which items are being sold

Why is it Important?

TBD

Seasonal Item

An item that is only available during certain parts of the year such as holidays

Also known as LTO (Limited Time Offer)

Why is it Important?

Seasonal items contribute to year over year sales as well as provide alternative options of consumer favorites during the holiday seasons

Secondary Location

A secondary location can refer to an alternative location. It can also be a place that is situated somewhere else in relation to the primary location of a product or product line.

Why is it Important?

TBD

Secure Display Placement

When a store agreeds to support a brand with additional placements outside of the primary location.

Why is it Important?

The more placements or displays a brand has, the more opportunities they have to interact with a consumer, resulting in sales.

Shelf Placement

Specific location within a set where a product or line is located. For example: top shelf, bottom shelf, eye level

Why is it Important?

Provides consistency to the customer base so they know where to find their favorite products on the shelf. A good shelf placement can also create a larger customer base.

Shelf Swap

Moving a product from one location within a set to another location within that same set

Why is it Important?

Moving a product from one location within a set to another location within that same set to improve the brands visibility for the customer.

Shelf improvements

Gains or additions to primary display secured due to Dirty Hands reputation with store buyers/leadership

Why is it Important?

When a brand has closer to eye level placement, they are more likely to be purchased, resulting in more velocity . "Eye to thigh."

Shipper

the indicator on the shelf of a product's price as well as size and distributor information

Why is it Important?

A shipper is a brand supplied merchanisiding display that allows for the brand to have additional placement. Shippers can create a visual splash for customers to interact with the product in multiple placements of the store

Shop Zone

Most desirable high traffic sales area on a shelf or display that includes 1-2 shelves above and below eye level placement.

Why is it Important?

TBD

Shrink/Spoilage

Items that expired, are damaged and unable to sell or were sampled out. (Recorded daily as, Spoilage, Food Bank or Samples)

Why is it Important?

TBD

Sky-Shelf

Location for the overhead stock for aisles - product will be added here first before re-packing to the back. All-sky shelf products should be added from left to right, without mixing flavors or brands together for SOP standards (AKA: Riser, overhead, top stock)

Why is it Important?

TBD

Slatwall

A Slatwall panel is a slatted surface that can be fixed to the wall from which shelves or hooks can be hung at varying heights to display merchandise.

Why is it Important?

TBD

Slotting Fees

sometimes referred to as a shelving fee, or slotting allowance
— is a cost that manufacturers pay to place their products on retail shelves. It is a one-time charge that ensures brands will be able to stock a new product until its sales performance can be established, usually within four to six months

Why is it Important?

TBD

Store

Retailer brick and mortar

Why is it Important?

TBD

Store Carrying

The list of individual stores that are carrying any SKU from a brand

Why is it Important?

Important information for brands to help calculate ACV as well as pinpoint opportunity stores for DH

Supply Chain

the sequence of processes involved in the production and distribution of a commodity.

Why is it Important?

TBD

Tag

the indicator on the shelf of a product's price as well as size and distributor information

Why is it Important?

When printed tags are on the shelf, it assures the brand that the product is available and able to be reordered, as well as that shelf real estate to be owned by the brand

Top Shelf

the highest shelf within a set

Why is it Important?

TBD

Total Placements

Total number of placements within an account. This should be a count of all primary locations and display locations for each line within a store

Why is it Important?

May be an indicator for a brands potential velocity. If a brand is located in in multiple placements including high traffic areas or high performing location on shelf.

Trade Spend

Trade spend is the amount of money that the manufacturer provides to the retailer for the purposes of selling the product to consumers

Why is it Important?

Turn Over

Inventory turnover is a critical accounting tool that retailers can use to ensure they are managing the store's inventory well. In its most basic definition, it is how many times during a certain calendar period that you sell and replace (turnover) your inventory.

Why is it Important?

TBD

UNFI

United Natural Food, Inc

Why is it Important?

UPC

Universal Product Code (Barcode on a product or sale tag)

Why is it Important?

TBD

Units Packed Out

The measurement of how many individual units of a product was product was filled to display or shelf

Why is it Important?

Measuring packout in units allows partners to easily correlate our teams tactics in store to units sold through the register.

VIP Coupon

A coupon that can be used to cover the entire cost of a product

Why is it Important?

A VIP coupon allows for a customer or an employee to try a new item at no cost to them, creating a new customer for a brand

Visit

A visit quantifies the time spent at a retailer where each brand partner is serviced on behalf of Dirty Hands

Why is it Important?

Retail Execution is a store level support team, which drives volume and velocity for brand partners through store level time in field in visits.

Visit Count

The actual number of store visits the team performs within a given timeframe.

Why is it Important?

A metric of a field team member's productivity.

Visit Update

Valuable information from todays visit that the Brand Manager or Brand needs to recieve in order to provide support, strategy, or further action

Why is it Important?

TBD

Void

A SKU that is authorized for sale in a retailer but there is no tag for the authorized SKU on shelf in that account

Why is it Important?

It helps brands understand what accounts have lost sales due to authorized product not on shelf. Goal is always as few voids as possible.

Void Fill

Getting product and tags on shelf for an authorized SKU that was previously not available in that account.

Why is it Important?

(never avoid a VOID : ) - Filling Voids creates more selling potential for a brand and broader SKU mixes

WFM

Whole Foods Market

Why is it Important?

TBD

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