Open To Buy Definition Apr 2026

The target stock level for the end of the period. Why Retailers Use It

Ensures key products are available when customers want them. open to buy definition

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

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

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

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