While that sounds like a dumb question, far too many retailers are supporting their stores instead of their stores supporting them. Because of their desire to always have the best merchandise, they tend to overbuy which keeps their inventory higher than needed and brings excess invoices which cannot be paid from regular sales.
The wrong answer to these problems is to borrow money, inject more of their own capital, or take markdowns. None of these “solutions” will help. In fact, they will only perpetuate a negative cash spiral that continues to compound the problem. There is one answer, and only one, to this pervasive problem. Open to buy planning.
Inability to pay the bills is a direct product of having working capital tied up in inventory that is not turning over. Consequently, instead of producing money that can pay overhead and vendor bills, the capital sits on the shelf producing nothing. Until a retailer institutes an open to buy system to plan and control buying, this negative scenario will repeat itself over and over.
Every retail store is driven by sales and turnover. An open to buy plan must be driven by sales and turnover to develop an accurate buying plan to keep inventory turning and cash flow positive. MYOTBPLAN.COM is the one open to buy program that is guaranteed to do just that. Affordable, accessible, easy to use, and supported 10 hours every day of the year, MYOTBPLAN.COM is the best bet for any retailer who would like to stop putting money into his store and start taking money out!