That Other "Obesity Epidemic": 80% of Retailers Are Over-Inventoried Some or All of the Time!

Retailing is different from all other industries. Why? Because inventory is the only engine of profitability. Managing the inventory is truly the #1 responsibility of top management in retail.

And yet, about 80% of all retail operations are over-inventoried or out of balance some or ALL of the time!

• As such, these retailers become short or out of cash. 
• Or they are forced to cut margins drastically to get rid of non-selling merchandise. (Ahh, which is worse? Out of cash or out of profit??)

The reasons for this rather sad situation are many, but two major issues stand out.

• The sellers of merchandise, the vendors, are very well trained at their job - selling! And meeting sales quotas.
• Meanwhile, the retail buyers of the merchandise, who may be excellent selectors of product, are not so well schooled at the management part of their job: setting and meeting buying budgets.  

(The reps usually know that budgeting inventory purchases is simply a four-part formula, called "Open-to-Buy". But do you think they want the buyers - their customers - to use a budgeting system? Of course not! "Are you kidding?! We don't want them that smart!")

But are the buyers really the weak link? Not usually. 

Instead, the problem is traceable to senior managers who are under-trained – or under-committed – to their #1 responsibility: managing and controlling that inventory!!!

"Fitness Center" for Out-of-Shape Inventories

Those days now can be over! With some humble delight, we love that thousands of retailers from around the world are benefiting from this (cheap!) online resource from The Retail Owners Institute®: the Open-to-Buy Center. 

• Those who use the Open-to-Buy Center learn the basics of Open-to-Buy.
• Plus, they generate their own buying plans, all online, with the Open-to-Buy Calculator . Easy and fast for retailers. 

Click here. Go to the Open-to-Buy Center  See how this "fitness center" for out-of-shape retail inventories is helping to combat that other "obesity epidemic".

Knowledge is power! Some day soon, the playing field may be level!