What does SKU stand for in retail terminology?

In retail terminology, SKU stands for Stock Keeping Unit. This is a unique identifier used to track inventory for a specific product. Each SKU is assigned to a specific item and contains important information such as the product type, size, color, and manufacturer. Retailers use SKUs to manage stock levels, streamline inventory processes, and analyze sales trends.

The importance of SKUs lies in their ability to provide detailed information about products, which helps retailers efficiently manage their inventory and fulfill customer orders. They also play a crucial role in point-of-sale systems, allowing for accurate tracking of sales and inventory turnover. In summary, understanding SKUs is essential for effective inventory management and sales strategies in retail.