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Unit 4: Buying for Off-price Retail Operations

4.10 Keywords Notes

Assortment: Assortment is a miscellaneous collection of things or people: “an assortment of
clothes”.

Keystone Markup: Keystone markup is pricing a product at double its cost.
Label: It corresponds to a descriptive or identifying tag.
Marquee: Marquee is defined as a canopy that projects over an entrance or a sign.

Off-price: Off-price is a retailer who sells name brand or designer products at reduced cost.
Power Center: Power center is the location where other “bargain” merchants locate themselves,
in neighborhood clusters, or in free-standing stores.

Traditional Retail: Traditional retail refers to these thousands of small, mostly family-owned
retail businesses.

4.11 Review Questions

1. Explain whether the terms off-price and discounting are interchangeable or not.

2. Are off-price retailers really charging less for the same merchandise found in department
stores? Discuss.
3. Differentiate between the timing of purchases for traditional stores and off-price operations.

4. In what way does the assortment requested by the department-store buyer differ from
that of off-price merchants? Discuss.
5. Explain the concept of indirect purchasing with example.

6. Discuss the method in which the indirect purchaser assists the off-price purchaser with his
or her merchandise acquisitions.
7. Why is it advisable for off-price merchants to locate their stores away from the traditional
malls and downtown central districts?
8. In what way does the vendor sometimes give consideration to the retailers who paid full
price for the merchandise?

9. Does the traditional department store ever purchase off-price goods? Why?
10. Compare a same-style purchase from two buyers. Give example.

Answers: Self Assessment

1. Discounter 2. Off-pricers
3. department-store 4. label

5. merchants 6. keystone markup
7. True 8. True
9. power centers 10. as-is
11. Special purchasing 12. Markup

13. False 14. True
15. Marquee-type 16. goods

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