Hobby and Crafts Stores Industry Terminology

Acid-Free

Materials (papers, adhesives, boards) with neutral or alkaline pH that resist yellowing and deterioration, critical for scrapbooking, framing, and archival storage.

Choose acid-free cardstock for wedding albums to prevent photo damage; Merchandise acid-free adhesives next to photo-safe pens; Train staff to direct customers to acid-free mat board for framing originals.

ASP (Average Selling Price)

The average price realized per unit sold over a period (revenue divided by units). Used to monitor mix and pricing.

Our yarn ASP rose from $4.99 to $5.49 after the premium line launch; Bundle pricing increased ASP in quilting notions; Track ASP by category to see promotional impact.

ATV (Average Transaction Value)

The average dollar amount spent per transaction (net sales divided by transactions). Often lifted via attachments and bundles.

Adding starter kits at checkout lifted ATV by $3; Cross-selling varnish with canvases raised ATV; Associate add-on goals target a $2 ATV increase.

BOPIS (Buy Online, Pick Up In Store)

Omnichannel service allowing customers to purchase online and collect orders at a store. Drives foot traffic and attachment.

Promote BOPIS for bulky canvases to avoid shipping costs; Allocate a staging area near the front for BOPIS; Measure BOPIS attachment rate on pickup.

BORIS (Buy Online, Return In Store)

Omnichannel capability enabling online purchases to be returned at a store. Improves customer convenience and reduces reverse logistics costs.

Train staff on BORIS receipts and refund policies; Use BORIS returns to offer exchanges and recapture sales; Track BORIS volume to plan labor at the service desk.

Case Pack

The standardized quantity of units per vendor carton. Affects ordering multiples, shelf capacity, and backroom storage.

Beads ship 48 per case pack—order in multiples of 48 to avoid splits; Ensure planogram facings fit the case pack multiple; Negotiate smaller case packs for slow sellers.

COGS (Cost of Goods Sold)

Direct cost of products sold, including purchase cost, freight-in, and adjustments. Used to compute margin and profitability.

Rising freight increased COGS on canvases by 3 points; Use COGS to calculate keystone pricing; Margin erosion flagged when COGS surged on imported yarns.

Conversion Rate

Percentage of store or site visitors who make a purchase. In-store, measured via traffic counters; online, via sessions.

Demos near the entrance boosted conversion by 2%; Queue-line displays improved conversion on low-traffic days; A/B test PDP content to raise online conversion for resin kits.

CPSIA (Consumer Product Safety Improvement Act)

U.S. law governing safety standards for children’s products (e.g., lead limits, phthalates, tracking labels). Art materials require appropriate labeling (e.g., ASTM D-4236).

Verify CPSIA compliance for kids’ craft kits; Maintain test certificates on file for private label; Add tracking labels to age-graded bead assortments.

Die-Cutting

Process of cutting shapes from materials (paper, vinyl, fabric, foam) using manual or electronic machines and dies. Core to scrapbooking, cardmaking, and signage.

Bundle dies with machines to lift attachment; Host die-cutting demos to drive machine sales; Add die storage near cutting tools per planogram.

Drop Ship

Fulfillment model where the vendor ships directly to the customer on the retailer’s behalf. Expands assortment without stocking inventory.

Offer drop-ship for oversized easels; Integrate vendor tracking numbers into order status; Use drop-ship to test niche yarn colors.

EDI (Electronic Data Interchange)

Standardized, computer-to-computer exchange of business documents (e.g., purchase orders, ASNs, invoices) with suppliers. Reduces errors and speeds replenishment.

Require EDI 850/810/856 from all key vendors; EDI-enabled ASN reduced receiving time for yarn; EDI chargebacks enforced for late invoices.

Endcap

Display located at the end of an aisle, used to feature seasonal, promotional, or high-margin items. High-visibility real estate.

Feature holiday ornament kits on front endcaps; Rotate endcaps weekly per promotional calendar; Measure lift vs. in-aisle placement.

Endless Aisle

Capability to offer products not physically in store by ordering online or from a central warehouse, often via kiosks or associate devices.

Save-the-sale by ordering a missing embroidery hoop size; Equip associates with tablets for endless aisle orders; Offer ship-to-home for oversized frames.

ERP (Enterprise Resource Planning)

Integrated system managing finance, purchasing, inventory, and merchandising data across the business.

Use ERP to align OTB with real-time receipts; Automate stock transfers between stores; Tie ERP item master to POS and e-commerce.

Facing

The number of product fronts shown on the shelf. Impacts visibility and sales velocity.

Increase acrylic paint facings for top colors; Reduce facings on slow bead SKUs to free space; Audit facing compliance during resets.

FIFO (First-In, First-Out)

Inventory rotation principle where the oldest stock is sold first to avoid obsolescence or spoilage (e.g., adhesives, paints).

Train team to pull forward older dye lots; Use shelf tags to mark FIFO order on glues; Enforce FIFO during receiving and zoning.

GMROI (Gross Margin Return on Inventory)

A productivity metric showing gross margin dollars returned per dollar invested in inventory.

Replace low-GMROI scrapbooking tools with faster sellers; Improve GMROI by reducing weeks of supply in yarn; Compare GMROI by vendor to optimize assortments.

Gondola

Freestanding merchandising fixture with adjustable shelves or peg hooks, commonly used in center aisles.

Build a gondola run for paint-by-number kits; Balance pegs and shelves for mixed-media tools; Anchor gondolas with endcaps for storytelling.

Hazmat Shipping

Handling and transport rules for hazardous materials (e.g., aerosols, flammable adhesives, solvents). Requires special packaging, labeling, and carrier compliance.

Flag hazmat SKUs in the WMS; Restrict air shipping for spray varnish; Train teams on limited-quantity labeling.

Impulse Zone

High-traffic area near checkout where small, low-price, high-margin items are merchandised to drive incremental purchases.

Stock washi tape and mini glues in the queue; Test seasonal trims in the impulse zone; Track impulse SKU sell-through weekly.

Inventory Turn

The number of times inventory is sold and replaced in a period (COGS divided by average inventory). Indicates inventory productivity.

Raise turn by reducing duplicative yarn colors; Improve replenishment to avoid overstock on canvases; Benchmark turns by category and season.

Keystone Pricing

A common retail pricing rule of thumb where retail price is set at roughly double the wholesale cost (a 50% markup) for certain categories.

Apply keystone to basic beads and trims; Evaluate exceptions for high-ticket tools; Check keystone adherence during price audits.

Lead Time

The time between placing a purchase order and receiving goods, including production and transit.

Build longer lead times into seasonal ornaments; Increase safety stock when lead times extend; Negotiate faster lead times for top SKUs.

Loss Prevention

Strategies and processes to reduce shrink from theft, fraud, damage, and errors.

Lock up high-value cutting machines; Use RFID/EAS on premium markers; Analyze POS exception reports for returns fraud.

MAP (Minimum Advertised Price)

A vendor policy setting the lowest price a retailer can advertise (not necessarily the lowest selling price), meant to protect brand value.

Ensure MAP compliance on heat presses online; Use coupon exclusions to honor MAP; Monitor marketplaces for MAP violations.

Make-and-Take (In-Store Workshop)

Events where customers create a small project in-store, often free or low-cost, to drive traffic and product trial.

Schedule Saturday make-and-takes for kids’ slime; Bundle workshop SKUs into a class kit; Track conversion from attendees to purchases.

Markdown Cadence

Planned schedule and depth of price reductions to clear inventory profitably.

Set a 25/40/60 cadence for seasonal décor; Use sell-through triggers to schedule markdowns; Coordinate cadence with circulars and email.

MOQ (Minimum Order Quantity)

The smallest quantity a supplier will sell per order or SKU. Impacts working capital and shelf space.

Negotiate lower MOQs on slow trims; Align MOQs with case packs and planograms; Use test orders with higher MOQs via drop-ship first.

MSDS/SDS (Safety Data Sheet)

Manufacturer-provided document detailing hazards, handling, and first aid for chemical products (paints, solvents, resins). Required for OSHA compliance.

Keep SDS binders accessible in the stockroom; Train staff on SDS for epoxy kits; List PPE on shelf tags for hazardous items.

Omnichannel

Seamless customer experience across online, mobile, and stores with unified inventory, pricing, and promotions.

Enable ship-from-store to speed delivery; Offer consistent coupons online and in-store; Provide unified loyalty points across channels.

OTB (Open-to-Buy)

Merchandise budget planning method controlling how much inventory to purchase, by period and category, based on sales, receipts, and stock targets.

Tighten OTB for underperforming crafts; Reserve OTB for trend-right seasonal kits; Use OTB to pace receipts ahead of holidays.

Own Brand (Private Label)

Products designed and branded by the retailer, often offering higher margins and exclusive designs.

Launch private-label skeins at keystone-plus margin; Use own brand for entry-level paintbrushes; Differentiate with exclusive seasonal papers.

Planogram (POG)

Visual/diagrammatic plan specifying product placement, facings, and adjacencies for fixtures. Ensures consistency and sales optimization.

Execute the POG reset for adhesives this week; Validate POG compliance using audits; Adjust POGs seasonally for back-to-school crafts.

POS (Point of Sale)

The checkout system recording transactions, managing promotions, tax, tender, and inventory deduction.

Configure POS for multi-buy craft glue promos; Use POS exception reports for returns audit; Integrate POS with loyalty and e-commerce.

Prop 65 (California Proposition 65)

California regulation requiring warnings on products exposing consumers to certain chemicals. Impacts labeling for some adhesives, resins, and dyes.

Add Prop 65 shelf signage for epoxy; Validate vendor-provided Prop 65 warnings; Train staff to answer customer questions on labels.

Retail 4-5-4 Calendar

Retail planning calendar with months structured into 4-5-4 weeks to align comparable weeks year over year.

Plan resets by 4-5-4 week, not month-end; Align promotions to the 4-5-4 holiday timing; Use 4-5-4 for YOY comp analysis.

RFID (Radio-Frequency Identification)

Technology using radio waves to identify and track items via tags, improving inventory accuracy and loss prevention.

Use RFID cycle counts on high-shrink markers; Enable smart fitting for fabric bolts; Tag pallets to speed receiving.

Safety Stock

Extra inventory held to protect against demand spikes and supply delays.

Increase safety stock on canvases before back-to-school; Reduce safety stock where lead times improved; Compute safety stock by service level targets.

Seasonal Reset

Scheduled remerchandising of seasonal areas to transition assortments (e.g., fall décor to holiday crafting).

Allocate extra labor for the holiday reset; Tie resets to the promotional calendar; Use sell-down plans to clear prior season before reset.

Sell-Through Rate

Percentage of inventory sold over a period, often units sold divided by units received or on-hand.

Target 80% sell-through on seasonal ornaments by Week 50; Slow sell-through on resin molds triggers markdowns; Review sell-through weekly to adjust endcaps.

SKU (Stock Keeping Unit)

A unique identifier for each distinct product variant (style, color, size). Enables inventory tracking and analysis.

Add a new SKU for each yarn colorway; Audit SKU counts to reduce duplication; Tie SKU attributes to online filters.

Slatwall

Wall panel system with horizontal grooves that accept hooks, shelves, and bins for flexible vertical merchandising.

Use slatwall to display embroidery hoops; Reflow hooks to fit seasonal trims; Keep backstock nearby for quick slatwall replenishment.

Sublimation Printing

Process where special inks are heat-transferred to polyester-coated substrates (mugs, tumblers, fabric) producing permanent, vibrant images.

Merchandise sublimation blanks with inks and heat presses; Offer classes to drive equipment sales; Clarify substrate compatibility to reduce returns.

UPC (Universal Product Code)

Standard 12-digit barcode used in North America for scanning at POS and inventory tracking.

Ensure UPCs are scannable on rolls of vinyl; Create store-generated UPCs for bulk fabric; Validate UPC mapping in the item master.

UPT (Units Per Transaction)

Average number of items sold per transaction. Often improved with attachment selling.

Goals to add one unit via glue or brushes; Track UPT lift during make-and-take events; Use clip-on recommendations online to raise UPT.

UV Resin

Fast-curing resin that hardens under UV light, popular for jewelry and small crafts; requires safety and compliance attention.

Merchandise UV lamps with resin to boost attachments; Add PPE guidance on shelf tags; Train staff on SDS and Prop 65 warnings.

VMI (Vendor Managed Inventory)

Replenishment model where the supplier monitors stock and triggers orders, often via EDI, to agreed targets.

Use VMI for fast-selling sewing notions; Share sell-through data weekly; Set service-level KPIs for VMI vendors.

Visual Merchandising

The art and science of presenting products to engage customers and drive sales through layout, color stories, signage, and props.

Build a color wall for yarn to inspire projects; Use rule-of-three on paintbrush bays; Refresh seasonal vignettes weekly.

WMS (Warehouse Management System)

Software controlling DC/warehouse operations like receiving, putaway, picking, packing, and shipping.

Wave pick BOPIS replenishments to stores; Use WMS to segregate hazmat; Improve accuracy with barcode-directed picking.