A typical OTB plan spans how long?

An Open-to-Buy (OTB) plan is a crucial tool used in retail management and merchandising. It helps businesses manage inventory levels effectively while ensuring they can meet customer demand. The typical duration of an OTB plan is one year, as this timeframe allows retailers to make strategic purchasing decisions that align with seasonal changes, promotional strategies, and overall sales goals.

By extending the OTB plan to one year, businesses can take into account various factors over a longer period, such as fluctuating market trends, shifts in consumer behavior, and the impacts of economic conditions. This longer scope enables better forecasting and more strategic planning of inventory purchases, ensuring that the business can maximize sales opportunities throughout the year while minimizing excess stock and markdowns.

Other durations, such as six months or three months, may be too short for effective long-term planning, making it difficult for retailers to fully capitalize on annual sales cycles. A two-year plan, while providing an even broader overview, can lead to rigidity and challenges in adjusting to rapidly changing retail environments. Thus, one year is the most practical and widely utilized timeframe for an OTB plan in merchandising.