Clothing and Accessory Stores Industry Terminology

AOV (Average Order Value)

The average revenue per customer order, typically calculated online or at POS: total sales ÷ number of orders.

We raised AOV by $8 after launching the belt cross-sell; The email offer lifted AOV from $72 to $80; Free shipping at $100 increased AOV by nudging basket size.

Assortment Planning

The process of selecting the right breadth and depth of products (styles, sizes, colors) for each store, channel, and season to meet demand and financial goals.

We narrowed our denim assortment to three fits per wash; Regional assortment planning adds more rainwear to the Pacific Northwest; The kids’ accessories assortment is too wide for our shelf space.

ATV (Average Transaction Value)

In-store equivalent to AOV: the average value of a single POS transaction. Often used for brick-and-mortar performance.

Our flagship’s ATV rose after introducing add-on jewelry at checkout; Staff clienteling increased ATV on Saturdays; ATV lagged despite higher footfall.

AUR (Average Unit Retail)

Average selling price per unit actually sold (net of markdowns and discounts).

Our AUR jumped after reducing markdowns; Adding premium fabrics increased AUR by $5; AUR varies by store cluster due to local discounting.

BOPIS (Buy Online, Pick Up In Store)

An omnichannel service that lets customers purchase online and collect their order in a physical store.

BOPIS orders peaked before the holiday weekend; We added a BOPIS pickup shelf near the entrance; BOPIS cut last‑mile costs and drove add-on purchases in store.

BORIS (Buy Online, Return In Store)

An omnichannel returns option where customers return online purchases at a store for refunds or exchanges.

BORIS reduced our mail-in return costs; Staff training improved BORIS conversion to exchanges; BORIS requires real-time OMS visibility for refunds.

CAC (Customer Acquisition Cost)

Total marketing and sales cost to acquire a new customer, often compared to first-order margin and LTV.

Influencer spend pushed CAC above target; Lower CAC in Q2 came from organic TikTok reach; We must keep CAC below first-order margin.

Clienteling

Personalized selling by store associates using customer data, preferences, and history to drive loyalty, basket size, and repeat purchases.

Associates used clienteling to recommend new arrivals to VIPs; Clienteling drove higher UPT in footwear; CRM-enabled clienteling boosted repeat visits.

Conversion Rate

The percentage of visits that result in a purchase (in-store: purchasers ÷ visitors; online: orders ÷ sessions).

Store conversion rose after we fixed fitting room flow; PDP conversion fell when size 8 went out of stock; Rainy days hurt conversion despite steady traffic.

CRM (Customer Relationship Management)

Systems and practices for managing customer data, segmentation, communications, and loyalty programs.

We unified email and POS data in the CRM; CRM segmentation powered our VIP private sale; CRM shows lapsed customers to re-engage with denim offers.

Cross-Merchandising

Placing complementary products together to encourage add-on purchases and storytelling.

We cross-merchandised scarves with outerwear; Cross-merchandising handbags near footwear increased attach; Jewelry endcaps cross-merch with party dresses.

Curbside Pickup

Contactless pickup service where staff bring online orders to the customer’s car outside the store.

Curbside peaked during storms; We added parking signs for curbside orders; OMS alerts staff when curbside orders are ready.

D2C / DTC (Direct-to-Consumer)

A brand selling directly to end customers through its own stores and digital channels, bypassing intermediaries.

Our DTC channel yields higher margins than wholesale; We launched a D2C capsule online first; DTC data informs our store assortments.

Dead Stock

Inventory that is unsellable at full price and unlikely to sell without heavy markdowns or liquidation.

We donated dead stock from last year’s collection; Markdown cadence failed, creating dead stock in petites; Dead stock ties up cash and space.

Demand Forecasting

Estimating future customer demand by style, size, color, location, and channel to guide buys and allocations.

We forecasted denim demand by fit and wash; Weather data improved demand forecasting for outerwear; Forecast error drove stockouts in sizes 0–2.

Dynamic Pricing

Adjusting prices in near real time based on demand, inventory, seasonality, and competitive signals.

We used dynamic pricing to clear sandals before season end; Competitor price checks triggered markdowns on basics; Online dynamic pricing lifted AUR without hurting sell-through.

EDI (Electronic Data Interchange)

Standardized electronic communication used to exchange purchase orders, invoices, advance ship notices, and other documents with vendors.

Vendors send ASNs via EDI; EDI 850/810 flows reduced invoice errors; Missing EDI caused chargebacks from the retailer.

End-of-Season (EOS) Sale

A promotional period to liquidate seasonal inventory and make room for new collections, guided by markdown strategy.

The EOS sale cleared slow-moving dresses; We preserved margin by delaying EOS markdowns; EOS planning starts with our markdown ladder.

ERP (Enterprise Resource Planning)

Core business software that integrates finance, purchasing, inventory, and other back-office processes.

Finance closes faster with ERP-OMS integration; The ERP tracks POs and landed cost; We migrated inventory valuation into the ERP.

Fast Fashion

A retail model emphasizing rapid design-to-shelf cycles and frequent newness at accessible prices.

Fast fashion cycles new styles weekly; Our fast-fashion competitors shorten lead times to weeks; We balance fast fashion with sustainability goals.

Fill Rate

The percentage of customer demand or orders fulfilled from available stock (at DC, store, or online).

DC fill rate fell due to vendor delays; We improved store fill rate on core tees to 96%; Low fill rate hurt conversion in key sizes.

Footfall

The number of visitors entering a store over a period; used to gauge traffic and staffing needs.

Footfall spiked during the street festival; Weather depressed footfall but boosted online; We installed counters to measure footfall by entrance.

GMROI (Gross Margin Return on Inventory Investment)

A productivity metric: gross margin dollars earned per dollar of average inventory cost.

Handbags deliver the highest GMROI; GMROI fell as we overbought outerwear; We target a GMROI above 3.0 for basics.

Gross Margin

Sales revenue minus cost of goods sold, expressed in dollars or percentage; key to profitability.

Gross margin improved after vendor cost negotiations; Excess markdowns compressed gross margin; Private label lifted gross margin by 400 bps.

Inventory Turnover

How many times inventory is sold and replaced in a period (COGS ÷ average inventory).

Outerwear turnover slows after February; Higher turnover reduced holding costs; Turnover is too low on occasion wear.

KPI (Key Performance Indicator)

Quantifiable metrics used to evaluate performance against goals in sales, operations, and service.

Weekly KPIs include conversion, UPT, and AUR; We added returns rate as a KPI; Store managers review KPIs in the huddle.

Last-Mile Delivery

The final leg of shipping from a fulfillment point to the customer’s location.

Courier shortages slowed last-mile delivery; We shifted BOPIS to ease last-mile costs; SMS updates improved last-mile satisfaction.

Lead Time

The elapsed time from order placement to goods arrival, including production and transit.

Fabric delays extended lead time by two weeks; Shorter lead times let us chase trends; We buffer lead time in the T&A calendar.

Loss Prevention

Practices and systems to reduce theft, fraud, and operational losses in stores and supply chain.

EAS tagging reduced shrink; Staff training is part of loss prevention; LP audits flagged fitting-room vulnerabilities.

LTV (Customer Lifetime Value)

The total expected gross margin or net profit from a customer over the entire relationship.

VIPs have 4x the LTV of new shoppers; We model LTV to set CAC caps; Clienteling programs grew LTV in accessories.

Markdown

A reduction from the original retail price to stimulate demand or clear inventory.

We took a 30% markdown on holiday sweaters; Early markdowns cannibalized full-price sales; Markdown budget is set in OTB.

Markdown Optimization

Using analytics to time and size markdowns to maximize sell-through and margin.

The tool recommended smaller, earlier markdowns; Optimization preserved margin on sandals; Data-driven markdowns improved sell-through.

Markup

The difference between cost and retail price, often expressed as a percentage of cost.

Keystone markup is roughly 50% margin; We raised markup on belts due to leather costs; Markup varies between private label and national brands.

Merchandise Planning

Financial and product planning that sets sales, margin, inventory, and receipt targets by category, season, and channel.

The plan calls for +8% sales and +1pt margin; We rebalanced the merchandise plan toward accessories; Weekly re-forecasting keeps the plan on track.

MOQ (Minimum Order Quantity)

The smallest quantity a supplier will produce or ship per order, color, or size.

The vendor’s MOQ is 600 units per color; High MOQs increase overstock risk; We negotiated a lower MOQ for test styles.

NPS (Net Promoter Score)

A customer loyalty metric based on the likelihood to recommend (promoters minus detractors).

Our NPS rose after revamping fitting rooms; Low NPS flagged checkout wait times; We track NPS by store and channel.

Omni-Channel Retailing

A seamless approach integrating stores, e-commerce, mobile, and social channels with shared inventory, pricing, and service.

Inventory is shared across omni; Omni customers have higher LTV; We unified pricing for omni consistency.

OMS (Order Management System)

Software that routes, allocates, and tracks orders across channels and fulfillment nodes.

OMS orchestrates BOPIS and ship-from-store; Our OMS allocates orders to the nearest inventory; OMS backorders when DC stock is out.

OTB (Open-to-Buy)

A budgeting method controlling how much inventory can be purchased for future periods to hit plan while managing cash and stock levels.

We froze OTB until sell-through improves; OTB funds the mid-season capsule; Allocators use OTB to chase best-sellers.

Planogram

A visual diagram that specifies product placement, facings, and adjacencies on shelves, tables, and walls.

The denim wall planogram changed for fall; HQ pushed a new planogram for accessories; Compliance audits check planogram execution.

POS (Point of Sale)

Hardware and software used to complete sales transactions, take payments, and record sales data.

The POS crashed during the rush; POS data feeds AUR and UPT reports; Mobile POS reduced lines at holiday.

Price Elasticity

The sensitivity of demand to changes in price; helps set pricing and markdown strategy.

Elasticity on basics is high—small cuts drive volume; Premium handbags are less price-elastic; We tested elasticity with A/B pricing online.

Private Label

Products designed and sold under a retailer’s own brand, often with higher margins and control.

Private label lifted margin by 400 bps; We launched a private-label jewelry line; Private label requires tighter QA and fit sessions.

Replenishment

Restocking ongoing, evergreen items to maintain target on-hand levels and avoid stockouts.

Core tees are on automated replenishment; We set min/max levels for replenishment by size; Late replenishment hurt conversion in size M.

RFID (Radio-Frequency Identification)

Wireless tagging tech for item-level identification and real-time inventory accuracy.

RFID improved inventory accuracy to 98%; We enabled RFID self-checkout pilots; RFID cycle counts cut labor time in half.

Safety Stock

Buffer inventory held to mitigate demand variability, lead-time uncertainty, and supply disruptions.

We raised safety stock for raincoats in April; Safety stock protects against forecast error; Low safety stock risks lost sales in key sizes.

Sell-Through Rate

Percent of on-hand inventory sold over a period (units sold ÷ units available), used to judge product performance.

Week 1 sell-through hit 35% on the new sneaker; Low sell-through triggered a markdown; High sell-through justified a chase order.

Shrinkage

Inventory loss from theft, damage, errors, or fraud, measured as a percentage of sales or inventory.

Shrink rose after we cut greeters; Tagging high-risk items reduced shrink; We review CCTV to investigate shrink spikes.

SKU (Stock Keeping Unit)

A unique identifier for each distinct item, size, and color combination in inventory.

We carry 12 SKUs per denim fit per wash; Too many SKUs complicate replenishment; We merged duplicate SKUs after a rebrand.

UPT (Units Per Transaction)

Average number of items purchased per transaction; indicator of cross-sell effectiveness.

UPT rose after training on add-ons; Jewelry drove UPT on party dresses; We incentivized UPT with bundle offers.