Open To Buy Definition (2024)

What is Open-to-Buy (OTB)? Definition, Meaning & Examples - Board

While specific variations exist, the fundamental logic behind OTB is: open to buy definition

The target stock level for the end of the period. Why Retailers Use It What is Open-to-Buy (OTB)

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 It acts as a guardrail to ensure businesses

Ensures key products are available when customers want them.

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

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