You would never head out into the wilderness without the proper survival tools and yet, every day creative people venture into the retail jungle with nothing more than hope and determination (and usually their life savings). Well, that’s not enough.
Retailers fail every day, not because they don’t have an attractive store or they don’t do enticing promotions or they don’t have great merchandise or they don’t have wonderful sales personnel. They fail because they buy too much and can’t pay their bills. Sure, they can survive for a while, but once their personal capital is eaten up or the bank loans come due, they’re in trouble and usually fold their tent.
And it’s not necessary! They just need to add one thing to their merchandising tool kit and that is open to buy planning. A good open to buy plan will help any retailer easily determine how much to buy based on anticipated sales and desired turn rates — the two elements that drive every retail store. Think about it, if you buy the right quantities in the right departments to arrive at the right time, you’ll always have the right amount of merchandise to support your sales and achieve your desired turn rates. And turnover is how you make money in retailing.
Don’t go into the retail jungle without your survival plan, an open to buy plan that will not only insure your survival, but your success!