Sporting Goods Stores Industry Terminology

A/B Testing

A controlled experiment comparing two versions of a webpage, email, offer, or in-store sign to see which performs better on a chosen metric (e.g., click-through, conversion).

We A/B tested the homepage banner for our ski clearance; Run an A/B test on POS prompts for loyalty enrollment; Test two checkout flows for custom team-uniform orders.

ABC Analysis

An inventory classification method that segments SKUs into A (critical/high value), B (moderate), and C (low) classes to prioritize control and investment.

Place A-class running shoes near the front and count them more often; Use tighter reorder points for A-class kayaks; Assign cycle counts weekly for A, monthly for B, quarterly for C.

Augmented Reality (AR) Try-On

Technology that overlays virtual products onto a customer’s real-time image to visualize fit or look (e.g., helmets, sunglasses, footwear) online or in-store.

Offer AR to size bike helmets on the app; Use AR mirrors for snowboard goggles; Preview colorways of cleats via AR before ordering.

Average Transaction Value (ATV)

The average revenue per transaction (total sales divided by number of transactions), often used to gauge upselling effectiveness.

ATV rose after bundling socks with running shoes; Set an ATV target during peak camping season; Training on cross-sell lifted ATV in team sports.

Average Unit Retail (AUR)

The average selling price per unit sold, influenced by pricing, mix, and markdowns.

AUR improved after reducing blanket discounts on skis; New premium yoga mats raised mat category AUR; Monitor AUR drop during clearance to protect margin.

Backorder

An order accepted for an out-of-stock item to be fulfilled when inventory arrives.

Accept backorders on the new trail-running model; Communicate backorder ETA for team uniforms; Limit backorders during vendor capacity constraints.

Barcode

A machine-readable code (e.g., UPC, EAN) used for identification and scanning at receiving, POS, and inventory counts.

Scan barcodes to speed curbside pickup; Use barcode audits to find mis-labeled bats; Print shelf labels with barcode and price.

BNPL (Buy Now, Pay Later)

A payment option allowing customers to split purchases into installments, often boosting conversion and basket size.

Offer BNPL on high-ticket bikes; Track BNPL fees in margin analysis; BNPL increased AUR during holiday ski sales.

BOPIS (Buy Online, Pick Up In Store)

An omnichannel fulfillment method where customers buy online and collect in store.

Route BOPIS orders to the nearest store with stock; Create a dedicated BOPIS pickup counter; Use BOPIS to sell oversized fitness equipment locally.

Brand Ambassador

An advocate (often an athlete, coach, or associate) who promotes a brand or store to build awareness and credibility.

Local marathoner acts as our running brand ambassador; Ambassadors host in-store clinics; Use ambassador content for social product launches.

Buyback/Trade-in Program

A program that lets customers trade used gear for credit, fueling upgrades and circular retail.

Trade in kids’ bats for store credit each season; Launch a bike buyback event before spring; Refurbish and resell used tents from trade-ins.

Category Management

Managing product categories as strategic business units with tailored assortment, pricing, and promotions.

Treat basketball as a growth category with added endcaps; Category reviews set target margins for footwear; Adjust camping assortment by region and season.

Chargeback (Retail)

A reversal of a card transaction due to customer dispute, fraud, or processing errors; also used for supplier compliance deductions in some retailers.

Appeal chargebacks on e-bike online orders; Tighten fraud filters during peak drop launches; Reduce chargebacks with clear return policies.

CLV (Customer Lifetime Value)

The projected net profit from a customer over the entire relationship, informing acquisition and retention spend.

High-CLV runners get early access to shoe drops; Model CLV by sport segment (golf vs. soccer); Use CLV to justify a premium loyalty tier.

COGS (Cost of Goods Sold)

Direct costs of merchandise sold, including product cost, inbound freight, and duties; excluding operating expenses.

Include ocean freight for kayaks in COGS; COGS pressure from currency drove price increases; Negotiate vendor terms to lower COGS on balls.

Conversion Rate

The percentage of visitors (store or site) who make a purchase.

Boosted store conversion with weekend staffing; Product video raised PDP conversion on cleats; Measure fitting room conversion in apparel.

CRM (Customer Relationship Management)

Systems and processes to manage customer data, interactions, campaigns, and service across channels.

Segment CRM lists by sport and skill level; Trigger win-back emails for lapsed hikers; Log service tickets for bike repairs in CRM.

Cross-Merchandising

Displaying or promoting complementary items together to increase basket size.

Cross-merch socks next to running shoes; Bundle hydration packs with hiking boots; Place tennis grips alongside racquets.

D2C/DTC (Direct-to-Consumer)

A brand selling directly to end customers via its own stores or site, sometimes competing with wholesale channels.

Balance our buy with brand’s DTC launches; Negotiate MAP when brands go DTC-heavy; Use exclusives to offset DTC competition.

Drop Ship

A fulfillment method where a vendor ships directly to the customer on the retailer’s behalf, expanding assortment without carrying stock.

Drop ship treadmills to reduce store handling; Offer extended sizes via vendor drop ship; Track drop-ship SLAs and return rules.

EDI (Electronic Data Interchange)

Standardized electronic exchange of business documents (POs, ASNs, invoices) between retailers and suppliers.

Send POs for winter jackets via EDI; Require ASNs to speed receiving; Auto-match EDI invoices for faster payment.

Endcap

A display at the end of an aisle used for high-visibility promotions or seasonal features.

Feature soccer back-to-school on the endcap; Rotate endcaps weekly for new brands; Measure endcap lift vs. inline placement.

Endless Aisle

Offering customers the ability to order items not physically in the store via kiosks, tablets, or associates’ devices.

Use endless aisle to sell kayaks not stocked; Ship-from-DC orders placed in-store; Show full size runs on a sales-floor tablet.

Footfall

The count of visitors entering a store, used to evaluate traffic and staffing.

Footfall spikes on game days near the stadium; Schedule more associates when footfall is high; Correlate footfall with conversion and ATV.

Forecast Accuracy

How closely demand forecasts match actual sales, often measured by MAPE or bias.

Improve forecast accuracy for snow-dependent items; Use weather data to forecast apparel layers; Calibrate preseason buys with last year’s error.

GMROI (Gross Margin Return on Inventory)

A metric showing gross margin dollars earned for each dollar invested in inventory.

Raise GMROI by tightening bike accessory assortment; Markdown faster on low-GMROI gear; Compare GMROI across footwear brands.

Gross Margin

Sales minus COGS, expressed in dollars or percentage; key to profitability.

Protect margin with MAP on premium bats; Margin dipped due to deep tent markdowns; Improve margin via private-label apparel.

Inventory Turnover

The number of times inventory is sold and replenished over a period; Sales/Avg Inventory (often at cost).

Target higher turns in seasonal apparel; Slow turns flag overbought golf bags; Raise turns by tightening size runs.

KPI (Key Performance Indicator)

A measurable metric used to gauge performance (e.g., sales, conversion, UPT, shrink).

Weekly KPI review for team sports; Set KPI targets for BOPIS speed; Track repair turnaround as a service KPI.

Layaway

A program where customers pay over time and take the item once fully paid, often replaced by BNPL but still used locally.

Offer layaway on high-end bikes; Set holiday layaway cutoff dates; Adjust layaway fees to cover handling.

Loyalty Program

A structured program that rewards repeat purchases and engagement, often via points, tiers, or perks.

Double points on trail gear this weekend; Launch a VIP tier for coaches; Redeem loyalty points on ski tuning services.

MAP (Minimum Advertised Price)

A brand’s policy setting the lowest price retailers may advertise, helping protect brand equity and margin.

Honor MAP on flagship running shoes; Audit MAP compliance across marketplaces; Use value-add bundles to compete under MAP.

Markdown

A price reduction from the original retail to accelerate sell-through or clear seasonal stock.

Take first markdown on winter jackets at 25%; Plan markdown cadence post–Super Bowl; Use markdown optimization tools in footwear.

Merchandising

Planning, sourcing, pricing, and presenting products to maximize sales and margin.

Localize merchandising for youth baseball; Set visual standards for bike displays; Balance breadth vs. depth in cleats.

Omnichannel

An integrated approach where customers have a consistent experience across stores, web, mobile, and social.

Unified inventory powers ship-from-store; Consistent pricing across channels; Omnichannel returns accepted in-store.

OTB (Open-to-Buy)

A budgeting framework that controls future inventory purchases based on sales plan, inventory on hand, and commitments.

Increase OTB for sandals after heatwave; Hold OTB for late-season snow gear; OTB review before vendor appointments.

Planogram

A schematic that dictates product placement on shelves and fixtures to improve space productivity and brand blocking.

Reset glove wall per the new planogram; Planogram calls for endcap ball bins; Audit planogram compliance weekly.

Private Label

Products branded and owned by the retailer, often offering higher margins and exclusivity.

Expand private-label fitness accessories; Use private label to fill price gaps in yoga; Test private-label base layers in cold markets.

Purchase Order (PO)

A formal document committing to buy goods from a supplier, specifying items, quantities, prices, and terms.

Issue POs for spring bicycles; Match PO to ASN at receiving; PO lead times extended due to port delays.

Reorder Point (ROP)

The inventory level that triggers replenishment, typically demand during lead time plus safety stock.

Set higher ROP for baseballs before tournaments; ROP adjusted as vendor lead times shifted; Use POS data to refine ROPs by store.

Reverse Logistics

Processes for moving goods from customers back to the retailer or vendor for returns, repairs, or recycling.

Consolidate returns of defective treadmills; Offer mail-in returns for online cleats; Refurbish returned e-bikes when allowed.

RFID (Radio-Frequency Identification)

Tags and readers that identify items via radio waves for faster counts, accuracy, and loss prevention.

RFID cycle counts on apparel each morning; Use RFID gates to deter theft on goggles; Find missing sizes with handheld RFID.

Safety Stock

Buffer inventory held to protect against demand spikes or supply delays.

Raise safety stock for tennis balls pre-season; Lower safety stock after lead times improved; Safety stock coverage: 2 weeks for top cleats.

Seasonality Curve

A profile showing expected demand patterns across a season or year to guide buys, staffing, and marketing.

Use a steep seasonality curve for skis; Shift curve for golf earlier in warm regions; Map staffing to the back-to-school curve.

Sell-Through Rate

Units sold as a percentage of units received over a period; a key velocity metric.

Target 80% sell-through on limited drops; Low sell-through flagged over-assorted bats; Weekly sell-through reviews drive markdowns.

Shrink

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

Reduce shrink on sunglasses with locked displays; Analyze shrink by category and store; Train staff on receipt-to-rack controls.

SKU (Stock Keeping Unit)

A unique identifier for a specific product variant (brand, model, size, color).

Create new SKUs for women’s trail shoes; Avoid duplicate SKUs in the PIM; SKU-level forecasts for gloves and hats.

Store Clustering

Grouping stores by similar traits (climate, demographics, store size) to localize assortment and pricing.

Cold-weather cluster gets deeper insulated jackets; Urban clusters prioritize fitness tech; Adjust cleat mix by youth league density.

UPT (Units Per Transaction)

Average number of items sold per transaction; a measure of add-on selling.

UPT rose after training on add-on socks; Set UPT goals during back-to-school; Bundles for camping boosted UPT to 2.6.

VMI (Vendor-Managed Inventory)

A replenishment model where the supplier manages inventory levels at the retailer based on shared data.

VMI improved in-stock on baseballs; Share POS data weekly for VMI partners; Set VMI service levels by category.