Investopedia

Continue to Site »

Scientific Retailing

Filed Under » , ,
Dictionary Says

Definition of 'Scientific Retailing'

The use of technology by retailers in order to make decisions regarding product placement, selection and inventory levels. Scientific retailing typically involves the use of computers and software in order to track consumer purchases and reactions to different promotions and pricing. This type of retail strategy can lead to centralized operations, in which the home office makes decisions regarding store layout and products offered, to cede more control to individual stores in order to take advantage of local consumer behavior and demographics.
Investopedia Says

Investopedia explains 'Scientific Retailing'

Employing a scientific retailing strategy by a company replaces the more traditional "gut instinct" that used to direct decision making. For example, a nationwide clothing chain using scientific retailing may notice that consumers in one part of a city are purchasing t-shirts, while across the same town consumers are purchasing golf shirts. By analyzing data and allowing individual stores to promote what consumers are buying instead of forcing each store to sell prescribed items, the chain may see higher sales and more repeat customers.

Articles Of Interest

  1.

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.

  2. Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.

  3. Measuring Company Efficiency

    Three useful indicators for measuring a retail company's efficiency are its inventory turnaround times, its receivables and its collection period.

  4. The 4 R's Of Investing In Retail

    Financial discipline is the key to successful growth in the retail industry.

  5. Consumer Confidence: A Killer Statistic

    It's the key to any market economy, so investors need to learn the measures and how to analyze them.

  6. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".

  7. Joh. A Benckiser Looks To Corner The Coffee Market

    Joh. A Benckiser is paying a huge price for the European coffee maker. What does this mean for the rest of the world's coffee manufacturers?

  8. Should You Head Back To Business School?

    Find out if an MBA is necessary for you to reach your professional goals.

  9. Zumiez Does Better Than Expected

    Zumiez's stock jumped more than 13% April 10 on news its March same-store sales increased 2.1%. Analysts were expecting a 7.5% decrease. The action sports retailer has a very mercurial stock. ...

  10. Slowing Sales At Fastenal Not Denting Investor Enthusiasm ... Yet

    Fastenal's growth is definitely slowing, but the multiples haven't really shrunk yet.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  2. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  3. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  4. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  5. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  6. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
Trading Center