In a personal finance context, "open to buy" can also refer to the on a consumer account, such as a Sam's Club credit card. It represents the amount of credit remaining that the cardholder can use for new purchases. [Video] Open to Buy Explained + Template Walkthrough
: The value of the stock you already have on hand at the start of the period. Types of OTB open to buy
: Focuses on the actual cash amount the retailer will spend with vendors, providing strict financial guardrails. In a personal finance context, "open to buy"
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 Types of OTB : Focuses on the actual