Open To Buy Definition (2025)

Prevents over-committing capital by buying too much stock.

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

The target stock level for the end of the period. Why Retailers Use It Prevents over-committing capital by buying too much stock

Ensures key products are available when customers want them. the fundamental logic behind OTB is:

While specific variations exist, the fundamental logic behind OTB is: