The Importance of Planned Inventories and Sales
Why Plan in Retail?
It is all starting to fall into place. I always knew it was important to operate a retail store with an open-to-buy plan but now, having seen case studies of stores with and without planned inventories and planned sales, it’s pretty snazzy to see the difference an OTB plan can have on cash flow.
You may be thinking, “Why plan? Planning constricts my creativity and I don’t do well with structure.”
And here is my response:
Planning allows you to see what’s going on in your store impartially. The numbers show you what is selling and what needs to be marked down and moved to give you room to bring in fresh products that people would want to buy. Yes, planning is structured, but it also allows you wiggle room to adjust as needed. Planning allows you to make goals and helps you work towards achieving them. It allows you to MEASURE effective inventory in your store, which is something that is impossible to do without knowing retail receivables, inventory and vendor returns. Having an OTB plan allows you to see when you need to turn and when it is time to infuse the store with new inventory. It makes you a more conscious and empowered buyer.
Was that an earful or what? I’m kind of excited about OTB (if you couldn’t tell) and would love to share more info with you! Reach-out to hear how establishing an OTB plan, coupled with a fully vetted concept, strong understanding of your target market and great branding & marketing will help you to create a successful retail concept.