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Inventory as Strategy, Not Storage: Building a High-Performance Open-to-Buy System

By Alan Miklofsky • December 2025

Inventory is not décor. It is not a warehouse. It is not “the cost of being in business.” Inventory is strategy, and for an independent comfort shoe retailer, it is the single largest financial commitment the business makes. When inventory turns well, the business breathes easily. When it turns poorly, the store suffocates under cash constraints, markdown pressure, and stagnation. The difference between the two outcomes is a disciplined, data-driven Open-to-Buy system.

A strong Open-to-Buy (OTB) program is the retailer’s steering wheel.

Without it, buying becomes reactive, emotional, and frequently influenced by vendor enthusiasm rather than customer behavior. With it, forecasting becomes data-driven, inventory becomes right-sized, and purchasing aligns with actual selling velocity instead of wishful thinking. In an environment where operating expenses and markdowns are rising, the retailer cannot afford guesswork.

The first principle of high-performance OTB is accountability.

Every SKU must justify its space. Winners earn depth; middling performers earn caution; losers earn a fast, dignified exit. Inventory that doesn’t move on time doesn’t just take up space—it ties up working capital, suppresses cash flow, and increases the risk of margin erosion later in the season. SKU-level accountability transforms buying from a “hope-based” activity into a strategic operating discipline.

Second, size-level accuracy is non-negotiable.

Comfort retailers live and die by widths, half-sizes, and consistent fit expectations. A misaligned size run traps thousands of dollars that should be turning. A proper OTB system monitors size selling patterns, anticipates missing sizes, and prevents situations where the store has plenty of shoes—just not in the sizes customers need. Size-level accuracy is not a detail; it is a profitability engine.

Third, liquidity depends on structured purchasing.

Retailers who operate without OTB discipline tend to overbuy early, underbuy late, and get pushed into making decisions based on cash panic rather than strategic forecasting. A well-managed OTB program ensures buying follows a rhythm aligned with customer demand, seasonal patterns, and finance goals—not vendor deadlines or habit. This consistency smooths cash flow, reduces borrowing, and makes profitability more predictable.

Fourth, exit strategies must be defined before the season begins.

A shoe that is slowing down at week ten shouldn’t require a crisis meeting at week fourteen. Planned exits—light markdowns, size-level adjustments, transfers, or vendor returns when available—keep the walls fresh and reduce the need for deep clearance later. The retailers who plan exits early protect both margin and cash flow.

OTB is not just an inventory tool—it is a stability tool.

It drives higher gross margin, cleaner assortments, healthier cash flow, and better decision-making. In short, it returns control to the retailer in a market where too many variables feel out of their hands.

Independent comfort shoe retailers who treat inventory as strategy rather than storage outperform their peers. They buy smarter, sell cleaner, and walk into each season with confidence instead of fear. In the modern footwear economy, OTB excellence isn’t optional. It’s survival.