Buying Market is Arriving, Am I Prepared?
With a tough economy, we have to do everything possible to manage our cash flow to the greatest possible extent. It means finding that perfect balance of inventory that meets customer demand without having an amount that will force a retailer to have excessive markdowns. However, it does not mean that you crawl into your shell and neglect your product mix. You still must look at your items and move out the old and bring in the new. Know what you need to replace and know how much you have to spend and stick to your OTB plan.
Use your retail stock ledger to back up your buying. Departments and classes need balance and the best way to accomplish this is doing vendor comparatives. If vendor A performs better than vendor B, demand that vendor B give you better pricing and better terms. Extended dating extends your open-to-buy plan and decreases some of the risks for carrying new product lines. You need to think like your customers and look for innovative and exciting items that you can’t find at every big box retailer. Open-to-buy plans are exactly that, a plan, and with your instinct as a retailer, you can purchase those items with good margins and good terms.