Prevents over-committing capital by buying too much stock.
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 open to buy definition
Plans can be broken down by entire store, specific seasons, departments, or even individual vendors. The Core Formula Prevents over-committing capital by buying too much stock
The target stock level for the end of the period. Why Retailers Use It Key Components of OTB Plans can be broken
What is Open-to-Buy (OTB)? Definition, Meaning & Examples - Board
For a deeper dive into retail planning, resources like the Shopify Retail Blog and Board's Glossary offer detailed guides and formulas for different business sizes. AI responses may include mistakes. Learn more