Shopping - Grocery
BROKER A company who sells products to retailers and wholesalers on behalf of manufacturers for a percentage of
sales turnover or profit. Some of these organisations also market these products, consequently a trend has recently
developed for these companies to re-label themselves as 'sales and marketing agencies'.
CATEGORY MANAGEMENT A category is product group such as biscuits, ice cream, pasta or petfood, there may of
course be sub-categories within a category. Both retailers and manufacturers employ category managers, their job is
to improve the sales achieved from the amount of shelf-space allocated to any particular category. To do this they
will need an understanding of why shoppers buy what they do so that they can offer the optimum mix of brands and
private label products to suit the size and type of store, taking into account local demographics.
Other factors that will be taken into consideration are merchandising to make the category both appealing and
logical to shop, the level of brand support given through TV advertising, promotions, special offers and new
DUE DILIGENCE The process of making sure that food is safe to eat, respectable food manufacturers will undertake
'due diligence' throughout the manufacturing process to ensure that food is not contaminated.
C T N Stands for confectioner, tobacconist and newsagent - in other words a newsagent.
FGP - FACTORY GATE PRICING Factory gate pricing is really primary distribution. Retailers, working in
partnership with their suppliers, have devised a system where goods are collected by the retailer, or their
designated carriers, from the factory gate. Under this system manufacturers charge for the price of the product
EDI - ELECTRONIC DATA INTERCHANGE This paperless system is widely used in grocery for stock ordering, it is
sophisticated enough to know that you have bought a tin of beans from your local supermarket, it then goes through
a process which alerts the manufacturer so that stock levels will be maintained.
EDLP - EVERYDAY LOW PRICING A devise used by major supermarkets to emphasise value for money. the retailer
offers low prices across their product range rather than special offers and BOGOFFs, buy one get one free.
ECR - EFFICIENT CONSUMER RESPONSE
A system that strives to improve the efficiency of the grocery supply chain. Its main aims are to provide
consumer value by .removing costs that do not add value and to minimise inefficiency throughout the supply
EFSIS EFSIS is a common third party independent inspection service for food retailers and manufacturers leading
to EFSIS accreditation, which ensures that the highest food manufacturing standards are maintained.
EPOS Electronic point of sale equipment that is used for pricing at the till, stock control and accounting.
F.M.C.G. - FAST MOVING CONSUMER GOODS Products that have a quick turnover.
FWD - FEDERATION OF WHOLESALE DISTRIBUTORS An organisation which represents the cash & carry and wholesale
IGD - THE INSTITUTE OF GROCERY DISTRIBUTION The IGD is a research, information and education provider for the
food and grocery industry, it has members from all sections of the food and grocery market - retailers, caterers,
wholesalers, manufacturers and farmers.
LOGISTICS The sophisticated art of getting products from the factory to the retailer at the allotted time.
MERCHANDISING The placement and display of products in-store, on-shelf and on the counter to maximise sales.
Merchandising can have a very positive effect on sales, but the effect can be ruined by manufacturers sending their
merchandiser into a shop to push their brands, rather than help the retailer make more profit
NATIONAL ACCOUNT MANAGER He or she is employed by a supplier to look after a major retailer or wholesaler, they
will negotiate the price, sort out promotions and support and keep their customer informed of any new product
developments and consumer support such as advertising and on-pack promotions.
PRIVATE LABEL - OWN LABEL - RETAILER BRAND Originally developed by Marks & Spencer (St Michael), retailers
are keen to develop their own company name as a brand, so they now sell a massive proportion of their offering in
their own packaging. Some of these are designed to re-enforce the value for money that the retailers offers, such
as Tesco Value and some are used to demonstrate high quality, like St Michael or Tesco Finest.
RDC - REGIONAL DISTRIBUTION CENTRE A central warehouse operated by a major supermarket chain or their chosen
contractor. Full loads are dropped off by manufacturers, they are then split up into smaller units and delivered to
individual stores as part of a mixed load.
RFID - RADIO FREQUENCY IDENTIFICATION DATA A controversial tagging system which helps manufacturers identify
where materials are in the supply chain and help retailers cut down on pilferage.
SKU - STOCK KEEPING UNIT Is a unique number assigned to a product for ordering and inventory purposes.
SUPERMARKET - SUPERSTORE - HYPERMARKET A supermarket has floor space in excess of 3,000 sq ft, a superstore more
than 25,000 sq ft and a hypermarket has over 40,000 sq ft.
TERTIARY BRAND A brand that receives no consumer advertising support and may be used by retailers to demonstrate
good value or simple used as a price fighting device.
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