Expanding your retail tech vocabulary (pt. 2)

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Retail Media network

‍A retail media network is a retailer-owned advertising service that allows marketers to purchase advertising space across all digital assets owned by a retail business, using the retailer's first-party data to connect with shoppers throughout their buying journey.

BOPIS

Buy Online Pick up In Store often called “Click and collect” aswell. A service that allows customers to place an online order and pick up their purchases at a physical store, offering convenience and reducing delivery times.

Shrinkflation

Shrinkflation is a rise in the general price level of goods per unit of weight or volume, brought about by a reduction in the weight or size of the item sold.

Phygital

Means physical plus digital and it’s a marketing term that describes blending digital experiences with physical ones. As customer interaction channels proliferate, companies aim to seamlessly integrate them. Linked to the term Omnichannel that’s listed in pt. 1 of the vocabulary that you can find here.

CPG/ FMCG

Consumer Packaged Goods/Fast-Moving Consumer Goods. CPG and FMCG are from what I can tell synonyms for the same thing, so I lumped them together. They are industry terms for merchandise that customers use up and replace on a frequent basis. Food and hygiene products for example.

AI

‍Artificial Intelligence. The simulation of human intelligence in machines, enabling computers to perform tasks that typically require human intelligence, such as product recommendations, demand forecasting, and customer service chatbots. Read about how food retailers use AI in their stores here.

Private label

A private label product is one that a retailer gets produced by a third-party but sells under its own brand name. Not to confuse with White labels that involves a company manufacturing products for another company to rebrand and sell as their own, while private labelling refers to products created by a company and sold exclusively under a specific retailer's brand. If you want to know more about how and why chains use private labels, read more here.

D2C

Direct-to-Consumer. A business model where manufacturers or brands sell their products directly to consumers, bypassing traditional retail channels. This approach allows for greater control over the customer experience and provides insights into consumer preferences.

IoT

Internet of Things. Sounds like a child named this thing, and honestly I still don't get what it is so I guess it's rightfully named. Anyway it's the network of physical devices, vehicles, appliances, and other objects embedded with sensors, software, and connectivity, enabling them to collect and exchange data. In grocery retail, IoT can be used to monitor temperature, track inventory, and optimize supply chain processes. Super clear, right?

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🔗 Missed out on Part 1 of our vocabulary series? Catch up here to become a retail tech language maestro!