Entering the U.S. retail market is exciting—but also overwhelming. Beyond the logistics, pricing, and brand positioning, there’s something few international CPG brands are prepared for: the retail lingo.
From “TPR” to “slotting fees,” U.S. buyers, brokers, and distributors use a vocabulary that’s second nature to them—but often confusing for new market entrants. Misunderstand these terms, and you risk missed opportunities, misaligned expectations, or costly mistakes.
This guide breaks down the most commonly used U.S. retail terms that every CPG brand should understand before stepping into meetings, trade shows, or negotiations.
📦 1. Slotting Fee
What it means: A one-time payment to a retailer to secure shelf space for a new product.
Why it matters:
This is common in large chains and can vary by category, store count, and region. Some retailers may waive it if you’re offering strong promotional support or if the product fills a clear gap in the set.
📊 2. Velocity
What it means: The rate at which a product sells, typically measured as units or dollars per store per week (PSPW).
Why it matters:
Velocity is more important than just sales volume. It helps buyers determine if your product is actually performing at the shelf relative to its distribution footprint.
💰 3. EDLP (Everyday Low Price)
What it means: A pricing strategy where a product is kept at a consistent low price rather than relying on temporary promotions.
Why it matters:
Some retailers (like Walmart) operate with EDLP expectations. You need to know this to structure your margins and promo calendar accordingly.
🏷️ 4. TPR (Temporary Price Reduction)
What it means: A short-term discount offered to stimulate sales, often funded by the brand.
Why it matters:
Buyers often expect TPRs during initial launch windows. They’re key tools for building early velocity and testing price sensitivity.
🧾 5. Scan Data
What it means: Retailers’ point-of-sale data that shows how many units sold, when, and at what price.
Why it matters:
Scan data is often required by buyers or brokers to evaluate performance. It’s also used to build cases for expansion or new listings.
🛒 6. Planogram (POG)
What it means: A visual diagram that shows the exact shelf placement and arrangement of products in a category.
Why it matters:
If you’re not aligned with the planogram—or you get placed in the wrong location—your product’s visibility and sales can suffer dramatically.
🚚 7. FOB (Free On Board)
What it means: A shipping term that defines who is responsible for goods at the point of transfer (e.g., “FOB Warehouse” means the buyer pays shipping from your warehouse).
Why it matters:
Understanding FOB terms helps you price correctly and avoid confusion about who covers freight costs.
📦 8. Case Pack
What it means: The number of individual units in one wholesale case.
Why it matters:
Retailers and distributors will evaluate your case pack for efficiency, shelf fit, and backroom storage. Incorrect sizing can lead to rejection.
📍 9. Reset
What it means: A scheduled change in shelf layout within a category, often quarterly or seasonally.
Why it matters:
Your listing and planogram position can only be updated during resets. Timing your pitch to coincide with these windows increases your chances.
🤝 10. Trade Spend
What it means: The total investment a brand makes to support its product at retail, including promotions, discounts, slotting, demos, etc.
Why it matters:
Trade spend is a major component of your U.S. launch budget. Underestimating it leads to poor velocity and tension with retail partners.
Conclusion: Speak the Language. Win the Shelf.
Retail in the U.S. moves fast—and no one has time to stop and explain what every acronym means. If you’re entering this space, speaking the language is part of being taken seriously.
At Group MCC, we help international CPG brands not only understand the U.S. market—but operate like locals. From strategy to execution, we guide you through the commercial reality behind every term and expectation, so you enter the shelf with clarity and confidence.
Book a free strategy session today and let’s translate your ambition into action—using a language buyers understand.