Health Food Stores Industry Terminology

A/B Testing

A method of comparing two versions of a digital asset (email, ad, product page, checkout) to see which performs better on a chosen metric (clicks, conversions, revenue).

Test two email subject lines promoting a kombucha BOGO vs a 20% off; compare PDP layouts with/without Non-GMO badge; trial different cart thresholds for free delivery on BOPIS.

ABC Analysis

Inventory categorization that ranks items by sales or margin contribution (A=highest, C=lowest) to prioritize forecasting, replenishment, and counting.

Classify top 20% SKUs (A) like best-selling plant-based milks; schedule daily cycle counts for A items; cut C items such as slow-moving niche bars.

ACV (All Commodity Volume)

A weighted distribution metric showing what percentage of category sales a brand’s items are available in across stores; indicates breadth and quality of distribution.

A brand achieves 60% ACV in the natural channel; set a goal to grow ACV by adding UNFI distribution; use ACV to benchmark distribution vs competitors via SPINS.

Adaptogens

Botanical ingredients (e.g., ashwagandha, rhodiola) believed to help the body adapt to stress; common in supplements, teas, and functional beverages.

Merchandise ashwagandha capsules in the wellness set; train staff to explain ‘stress support’ positioning; feature adaptogenic drinks on the endcap.

Allergen Cross-Contact

Unintentional transfer of allergens from one food to another; a critical safety risk managed through procedures, training, labeling, and cleaning.

Dedicate scoops for tree nuts vs seeds in bulk bins; post ‘may contain’ signage where appropriate; follow sanitation SOPs to prevent peanut residue transfer.

Assortment Optimization

Using data, shopper insights, and constraints (space, margin) to choose the right mix of SKUs that maximizes sales, profit, and shopper satisfaction.

Replace low-velocity keto granola with faster plant-based options; right-size flavors in kombucha; localize sets to neighborhood dietary preferences.

Average Basket Size (AOV)

Average order value per transaction; a key retail KPI improved through cross-merchandising, promotions, and loyalty incentives.

Increase AOV by bundling smoothie ingredients; add ‘spend $50 get $10’ loyalty offers; cross-merch nut butters near bread.

B Corp Certification

Third-party certification that verifies high standards of social and environmental performance, transparency, and accountability.

Flag B Corp brands with shelf talkers; prioritize B Corps in local vendor features; include in ESG storytelling on endcaps.

BOGO (Buy One, Get One)

A promotion mechanic that drives trial and volume by offering a second unit at free or discounted price.

Run BOGO 50% off on probiotics; negotiate vendor-funded BOGOs during new item launches; track unit lift and post-promo baseline.

BOPIS (Buy Online, Pick Up In Store)

Omnichannel service where shoppers order online and collect purchases at the store, blending convenience with immediate fulfillment.

Offer same-day BOPIS on refrigerated items; allocate pick windows to avoid peak traffic; reserve inventory in POS to prevent OOS.

Brand Ambassador Demos

In-store sampling and education by brand reps to drive awareness, trial, and conversion.

Schedule weekend kombucha sampling; measure demo-to-sale conversion; coordinate with supplier co-op funds for staffing and materials.

CAC (Customer Acquisition Cost)

Total marketing and sales spend divided by new customers acquired; used to evaluate channel efficiency and growth investments.

Compare CAC for Meta ads vs influencer partnerships; target CAC payback within 3 purchases based on CLV; reduce CAC via referral programs.

California Proposition 65 (Prop 65)

California law requiring warnings on products that may expose consumers to chemicals known to cause cancer or reproductive harm.

Post entryway Prop 65 signage; verify supplier disclosures for products with potential heavy metals; update labels/shelf tags if warnings are required.

Category Management

A data-driven discipline to manage product categories as strategic business units, optimizing assortment, pricing, promotion, and placement.

Build planograms from SPINS rank and attribute trends; craft a TPR calendar by subcategory; conduct seasonal resets for wellness and set integrity checks.

Clean Label

Consumer-facing shorthand for products with simple, recognizable ingredients and minimal additives or artificial substances.

Tag ‘no artificial sweeteners’ on shelf; prioritize simple-ingredient nut milks; communicate ‘no carrageenan’ or ‘no titanium dioxide’.

CLV (Customer Lifetime Value)

Projected net profit from a customer over the entire relationship; guides spend on acquisition, retention, and loyalty.

Model CLV by diet segment (vegan, keto); invest more in retention channels where CLV:CAC >3:1; personalize offers to high-CLV shoppers.

Cold Chain

Temperature-controlled supply chain required to keep perishable and probiotic items safe and effective from supplier to shelf.

Require data loggers on HPP juices; check receiving temps for probiotics; maintain logs for refrigerated transport and storage.

Co-op Marketing

Manufacturer-retailer cost sharing for marketing activities (ads, endcaps, demos) to drive sales of participating brands.

Use vendor MDF to fund endcaps; split costs for circular ads; co-brand wellness workshops with supplement suppliers.

CRM (Customer Relationship Management)

Systems and processes to manage customer data, communications, and offers across channels to increase retention and value.

Segment emails by dietary preference; sync loyalty data to personalize coupons; track shopper journeys from ad to BOPIS pickup.

cGMP (current Good Manufacturing Practices)

FDA-enforced practices for consistent quality and safety in manufacturing foods and dietary supplements.

Verify supplement suppliers comply with 21 CFR Part 111; collect cGMP certificates during vendor onboarding; audit private-label co-packers.

DSD (Direct Store Delivery)

Suppliers deliver directly to store rather than through the retailer’s warehouse; common for beverages, bread, and some local items.

Schedule kombucha DSD Mondays; reconcile DSD invoices vs scans; manage shelf inventory with vendor reps.

DSHEA (Dietary Supplement Health and Education Act)

1994 U.S. law defining dietary supplements and their labeling/claims framework, distinct from conventional foods and drugs.

Ensure only permissible structure/function claims on supplements; keep required disclaimers; train staff not to make disease treatment claims.

EDLP (Everyday Low Price)

Pricing strategy that maintains stable low prices rather than frequent deep promotions.

Make oats EDLP to build traffic; compare EDLP vs hi-lo profit on plant milks; monitor price perception vs competitors.

Endcap

High-visibility display at the end of aisles used for features, seasonal items, and promotions.

Feature seasonal pumpkin SKUs on endcaps; negotiate paid endcap placement; measure sales lift vs inline.

EOQ (Economic Order Quantity)

Formula to determine the optimal order size that minimizes combined ordering and holding costs given demand and lead time.

Calculate EOQ for protein bars balancing holding cost vs order cost; align EOQ with case pack; adjust for promo periods.

ESG (Environmental, Social, and Governance)

Framework for measuring a company’s sustainability and ethical impact across environmental, social, and governance areas.

Publish ESG goals for waste diversion; assess supplier ESG disclosures; highlight ESG impacts in community reports.

Fair Trade Certified

Certification ensuring fair prices, labor standards, and environmental practices in supply chains for products like coffee, tea, and chocolate.

Tag fair trade coffee on shelf; promote Fair Trade Month; prioritize fair trade cocoa in private label.

FEFO and FIFO Rotation

Stock rotation methods: FEFO (First Expired, First Out) for perishables; FIFO (First In, First Out) for general inventory to reduce waste.

Use FEFO for refrigerated yogurt; apply FIFO to shelf-stable snacks; train staff to face and rotate during each fill.

FSMA (Food Safety Modernization Act)

U.S. law shifting food safety from reactive to preventive, including supplier verification, traceability, and risk-based controls.

Maintain supplier verification records; implement preventive controls for bulk handling; conduct documented mock recalls.

GFCO (Gluten-Free Certification)

Third-party certification by the Gluten-Free Certification Organization verifying products meet strict gluten-free standards.

Use GFCO shelf tags for celiac shoppers; confirm GFCO certificates from vendors; separate gluten-free bulk bins to prevent cross-contact.

Gross Margin

Sales minus cost of goods sold, expressed in dollars or percent; key profitability measure at SKU, category, and store levels.

Track margin dollars by category; evaluate the margin impact of TPRs; set private-label price points to hit target margins.

HACCP (Hazard Analysis and Critical Control Points)

Systematic approach to identify, prevent, and monitor food safety hazards through defined critical control points and documentation.

Map CCPs in the juice bar; calibrate thermometers and log temps; verify sanitizer concentrations during line checks.

Health Claims: Structure/Function vs Disease

Regulatory distinction: structure/function claims describe effects on normal body structure/function, while disease claims imply prevention/treatment and are restricted.

Allowed: ‘supports immune health’; Not allowed without approval: ‘prevents colds’; train staff to avoid drug-like claims at POS.

HPP (High-Pressure Processing)

Non-thermal pasteurization that uses high pressure to inactivate microbes, preserving flavor and nutrients in items like juices and dips.

Merchandise HPP juices with ‘cold-pressed, never heated’ messaging; enforce strict cold chain; educate on extended shelf life vs fresh.

Lead Time

Elapsed time between placing an order and receiving it; core variable in replenishment and service-level planning.

Plan orders with UNFI 3-day lead times; increase safety stock ahead of promotions; set reorder points based on lead-time variability.

Loyalty Program

A membership or rewards system that incentivizes repeat purchases and captures data for personalization and retention.

Offer points on organic produce; deliver personalized coupons via app; use loyalty data to drive attribute-based assortments.

MAP (Minimum Advertised Price)

Supplier policy specifying the lowest price a retailer may advertise; affects price perception, promotions, and channel parity.

Keep advertised prices for premium supplements at or above MAP; automate MAP checks online; coordinate MAP with vendor-funded promos.

MOQ (Minimum Order Quantity)

The minimum units a supplier will accept per order, often driving cash flow, space planning, and new item trials.

Meet a 100-case MOQ on new RTD teas; negotiate lower MOQs for trial; consolidate POs across stores to hit MOQs.

Natural Channel

Retail segment focused on natural/organic/specialty products (e.g., health food stores), tracked separately from mass/conventional channels.

Benchmark share within SPINS Natural Enhanced Channel; plan expansion from natural to conventional; pitch brand to natural-focused distributors.

NDI (New Dietary Ingredient)

Under DSHEA, a dietary ingredient not marketed in the U.S. before 10/15/1994 requires FDA notification before use in supplements.

Request NDI notifications/justifications for novel botanicals; exclude non-compliant supplements; educate buyers on NDI risks.

Non-GMO Project Verified

Third-party verification that products meet Non-GMO Project standards for GMO avoidance and traceability.

Use ‘butterfly’ logo callouts on shelf; filter SPINS data by Non-GMO attribute; prioritize verification in private label specs.

Nutrition Facts vs Supplement Facts Panels

Two distinct FDA label formats: foods use Nutrition Facts, dietary supplements use Supplement Facts, each with specific compliance rules.

Confirm protein powders labeled with correct panel type; separate health claims rules by panel; train staff on where serving sizes differ.

OOS (Out of Stock) and Voids

OOS means inventory unavailable for sale; voids are authorized items missing from the shelf. Both depress sales and shopper satisfaction.

Audit planograms for phantom voids; alert vendors about chronic OOS on DSD items; track OOS rate during promotions.

Organic Certification (USDA Organic)

U.S. certification verifying compliance with National Organic Program standards for production, handling, and labeling.

Merchandise 95%+ organic products with USDA seal; maintain chain-of-custody docs; ensure private label suppliers hold valid certificates.

Planogram

A schematic that dictates product placement on shelves to optimize space, sales, and shopper navigation.

Place top sellers at eye level; allocate linear feet by subcategory performance; enforce compliance with photo audits.

PLU Codes and Tare Weight

PLU codes identify produce/bulk items at checkout; tare is the container weight deducted to charge only for product weight.

Use PLU 94011 for organic bananas; pre-weigh jars and record tare for bulk shopping; train cashiers on PLU entry accuracy.

POS (Point of Sale)

Hardware and software system that processes transactions, manages inventory, and connects pricing, promotions, and loyalty data.

Integrate POS with inventory and loyalty; enable EBT acceptance; run real-time OOS alerts for BOPIS picks.

Private Label

Retailer-owned brand products, often offering better margins, control over specs, and differentiation.

Launch organic pantry staples under store brand; target higher margins than national brands; ensure co-packers meet cGMP and organic standards.

SPINS (Syndicated Natural Products Data)

Syndicated data service focusing on natural/specialty products, providing sales, distribution, and attribute analytics.

Use SPINS to identify rising attributes (keto, adaptogen); track brand rank within category; justify distribution gains with velocity data.

TPR (Temporary Price Reduction)

Short-term price discount funded by retailer or supplier to drive trial and volume without permanent price changes.

Run 4-week TPRs on plant-based milks; coordinate ship dates and inventory build with vendor; analyze promo lift vs baseline.