Reviewed and updated on 5 November 2026.

This retail jargon buster explains M to Z terms used in stock reports, sales planning and technology proposals. Clear definitions help retailers and wholesalers compare options and understand what their figures actually measure.

For AI, EPoS, forecasting and other earlier entries, read part 1 of our retail jargon buster, A to L. Both guides have been reviewed for 2026. Features and reporting methods still need checking against your own systems.

Retail jargon buster: M to O

Markdown

A reduction from a product’s previous selling price. Retailers may mark down seasonal, damaged or slow-moving stock. Review the remaining gross profit and keep a record of why the price changed.

Merchandising

Planning the range, quantities, prices and presentation of products to meet customer demand. It connects buying decisions with how goods are offered and sold.

Mobile commerce (m-commerce)

Buying or selling online through a mobile device, such as a smartphone. A usable mobile shop needs clear product information and a checkout that works comfortably on a small screen.

Mobile payments and mobile wallets

Mobile payments use a phone or another mobile device to pay, whether in a shop, online or within an app. A mobile wallet can store payment credentials and support contactless payment through a compatible device. Mobile payment does not always mean tapping a phone on a reader.

Mobile point of sale

A portable checkout using equipment such as a tablet or handheld terminal. It can support temporary tills or transactions away from a fixed counter. Check supported software, payment connections and offline behaviour before relying on it during busy trading.

Multichannel retail

Selling through several channels, such as shops, a website and a marketplace. Each channel may have separate systems or stock records. Having several sales channels does not by itself mean they are connected.

Off-price retail

A retail model selling goods below their usual selling prices, often across several brands. Stock may include surplus or previous-season lines. The source and condition of each range still need checking.

Omnichannel retail

An approach that connects the customer experience across channels. Examples include collecting an online order in a shop or handling an online return at a branch. Confirm which processes and information are actually shared rather than relying on the label.

Open-to-buy (OTB)

The amount available for further stock purchases within a buying plan after allowing for stock already held or committed. Sales forecasts, planned closing stock and markdowns can affect the calculation. Keep cost and retail valuations consistent, and agree the method before using the figure to place orders.

Retail terms from P to R

Planogram

A layout showing where products should sit on shelves or displays. It can specify the number of visible product fronts, known as facings. Shelf capacity, replenishment and customer access all matter when putting the plan into practice.

Pop-up shop

A temporary selling space used for a limited period. A pop-up might test a location, support an event or introduce a range. Stock allocation, connectivity and end-of-event reconciliation need planning alongside the display.

Product life cycle

A model describing introduction, growth, maturity and decline in a product’s market performance. Actual products do not follow a fixed timetable. Use current sales and stock information when deciding whether to replenish or reduce a line.

Real-time stock

A phrase used for stock information updated as transactions or movements occur. In practice, connections and synchronisation intervals can introduce delays. Ask when an update reaches each channel and whether the quantity includes reserved or unavailable goods.

Reorder point

The stock level at which replenishment should be triggered. A basic calculation allows for expected demand during the supplier’s lead time plus safety stock. Review the assumptions when demand or delivery reliability changes.

Radio-frequency identification (RFID)

Technology that uses radio signals to read compatible tags. It can support identifying and counting stock without scanning each printed barcode individually, depending on the equipment and environment. GS1 explains how Electronic Product Codes can be encoded on RFID tags. Test tags, readers and software together before rollout.

Retail terms beginning with S

Safety stock

Extra stock held to help cover unexpected demand or supply delays. More safety stock can reduce some availability risks but also ties up cash and storage space.

Sell-through rate

The percentage of a defined stock quantity sold during a chosen period. For a simple batch example, selling 60 of 100 units gives 60% sell-through. State the period and whether the denominator includes opening stock, new receipts or another basis.

Reporting methods vary. Shopify’s inventory report guidance illustrates how a platform defines sell-through and estimates remaining stock. Check the definition in your own report before comparing results.

Shopping basket or cart

The part of an online shop where customers collect items before checkout. A basket is not a completed sale. Review how long items remain available and whether adding them reserves stock.

Showrooming and webrooming

Showrooming means viewing a product in a physical shop before buying online. Webrooming means researching online before buying in a shop. The purchase may be with the same retailer or a different business.

Shrinkage

A difference between recorded stock and the stock physically available, usually discussed as a loss. Theft, damage, waste and recording errors can contribute. Investigate the cause before assuming every discrepancy is theft. Our guide to preventing hidden profit losses covers practical checks.

Social commerce and social selling

Social commerce involves shopping through social platforms, with checkout arrangements varying by platform and market. Social selling more broadly uses social interactions to build relationships and support sales. The terms are related but do not always describe the same activity.

Software as a service (SaaS)

Software accessed as an ongoing hosted service, commonly through a subscription. Check included users, updates, support and data export arrangements, as well as any separately charged integrations or hardware.

Stock cover

An estimate of how long stock will last at an assumed rate of sale. For example, 120 available units at 30 units per week gives four weeks of cover. This illustration assumes steady demand and excludes incoming deliveries. Promotions, seasonality and supplier lead times can change the picture.

Stock keeping unit (SKU)

An internal code identifying a stock line or variant. Different sizes or colours may need separate SKUs. A SKU is not automatically the same as a standard Global Trade Item Number (GTIN), although either identifier may be represented in a suitable barcode.

Supply chain

The organisations and activities involved in making, moving and supplying goods to the customer. It includes manufacturers, suppliers, transport providers and the stock-handling processes within your business.

Retail terms from T to Z

Tribetailing

A marketing term for tailoring a retail offer to a particular community or interest group. It is more useful to define the customers and their needs than to assume every member of a group wants the same products.

Unified commerce

A term used for bringing sales channels and operational information onto a shared platform or closely connected systems. Ask which stock, order, customer and payment records are shared, and where separate tools remain necessary.

Units per transaction (UPT)

The number of units sold divided by the number of transactions over the same period. Selling 600 units across 200 transactions gives a UPT of three. Keep returns and multipack treatment consistent when comparing performance.

Visual merchandising

Arranging displays, signage and product presentation to help customers understand and shop the range. Review whether the display improves navigation and sales rather than judging appearance alone.

Warehousing

Receiving, checking, storing, picking and dispatching goods. Accurate location records and clear checks help staff find the right product and quantity when fulfilling an order.

Weekly sales and stock intake (WSSI)

A planning view that brings together weekly sales, incoming stock and expected stock levels. It may be maintained in a spreadsheet or dedicated software. Regularly compare forecasts with actual results so buying decisions reflect current demand and commitments.

Z report

A period-end till report, commonly used when closing a trading session. Traditional systems may reset session totals when it is produced, while modern software handles closing differently. Confirm what your system closes and retain the records needed for reconciliation.

Speak with RMS about your stock and sales processes

Ask suppliers to explain terminology using an example from your business. RMS can help you review OpSuite retail operations software, compatible hardware and the information your team needs. Speak with our team about your requirements or call 0800 138 0050.

Why choose RMS?

RMS has supported ambitious businesses since 2004, delivering tailored software solutions and EPoS hardware from the Shetland Islands to the Seychelles. We work across multiple retail and wholesale sectors. Contact our team to discuss your requirements.

Information correct at time of publication