Open To Buy Definition -

Prevents over-committing capital by buying too much stock.

Plans can be broken down by entire store, specific seasons, departments, or even individual vendors. The Core Formula open to buy definition

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 Prevents over-committing capital by buying too much stock

While specific variations exist, the fundamental logic behind OTB is: AI responses may include mistakes

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

Helps identify slow-moving inventory, allowing for faster stock rotation.