Open To Buy Apr 2026

is a financial planning strategy used by retailers to calculate how much inventory they should purchase over a specific period. It acts as a buying budget that balances current stock against sales goals and markdowns to ensure a store has enough product to meet demand without overspending or overstocking. Core Purpose

Retailers typically use a basic formula to determine their available budget (often calculated in retail dollars): open to buy

OTB=(Planned Sales+Planned Markdowns+Planned End-of-Month Inventory)−Planned Beginning-of-Month Inventorycap O cap T cap B equals open paren Planned Sales plus Planned Markdowns plus Planned End-of-Month Inventory close paren minus Planned Beginning-of-Month Inventory : The total revenue expected for the period. is a financial planning strategy used by retailers

: Anticipated price reductions for clearance or promotions. : Anticipated price reductions for clearance or promotions

: Allows retailers to spend money on new products or replenishment based on actual performance data. The Standard OTB Formula

: Focuses on the expected selling price of the merchandise, useful for high-level strategic planning.