What does the acronym SKU represent in retail?

The acronym SKU represents "Stock Keeping Unit" in retail. This term is a unique identifier for each distinct product and service that can be purchased. The SKU is critical for inventory management as it helps retailers track stock levels, manage inventory, and analyze sales performance. Each SKU typically reflects specific details about a product, such as its size, color, brand, and type. By assigning a unique SKU to each item, retailers can streamline operations, maintain precise inventory counts, and make informed purchasing decisions.

The other options, while they may sound viable at first glance, do not accurately capture the concept of SKU. "Sales Keeping Unit" suggests a focus on sales rather than inventory management, which is not the primary function of an SKU. "Standard Knowledge Unit" does not relate to retail at all, and "Supply Knowledge Unit" also misrepresents the purpose of this term. Therefore, Stock Keeping Unit is the correct and most relevant definition in the context of retail merchandising.