Helps identify slow-moving inventory, allowing for faster stock rotation.
Retailers use data rather than "gut instinct" to manage their inventory levels. An OTB plan typically factors in: The projected revenue for the period. Current Inventory: The physical stock already on hand. Projected Markdowns: Discounts expected during the period. open to buy definition
is a financial budget and retail planning process that calculates the amount of merchandise a retailer can purchase within a specific timeframe. It acts as a guardrail to ensure businesses remain within their financial goals while maintaining enough stock to meet customer demand. Key Components of OTB Current Inventory: The physical stock already on hand
Plans can be broken down by entire store, specific seasons, departments, or even individual vendors. The Core Formula It acts as a guardrail to ensure businesses
The target stock level for the end of the period. Why Retailers Use It