1. Welcome! Presenters: Brad Pinneke and Paul Erickson

2. Major Topics To Be Covered In This Presentation Perfect Condition Inaccurate Planning What is Open-to-Buy? Forecasting and Planning Benefits of Open-to-Buy Open to Buy

4. Perfect Condition This Month’s Sales Forecast is 12 Pens How Many Do We Need? What If They Come in 12 Colors? How Many Do We Need Now? What If They Come in 2 Lengths? Perfect Condition

5. Open to Buy

7. Definition: A Financial Budget for Retail Merchandise First Step to Better Control of Inventory Provides Guidance on How Much to Buy Creates Benchmarks on Evaluating Progress Financial Tool Units of Measure = Dollars Works at Any Level Open to Buy

11. Retailers that Benefit Most from Open-to-Buy Apparel, Shoe, Outdoor, Gift, Jewelry, Toy, Sporting Goods, Bike, and more Any Retailer that Carries Perishable and/or Seasonal Inventory Any Retailer that Must Commit $ to Inventory in Advance of the Season Open to Buy

12. Open to Buy Ingredients At Store Classification Level Sales Inventory Levels Receipts Markdown Budget A Dynamic Profit Plan Open to Buy

14. Forecasting and Planning – At Classification Level Analyzes and Modifies Store / Classification Sales Patterns and Markdown Data 6-12 Months in Future Builds Ideal Merchandising Patterns Identifies Profitable Trends by Classification Forecasts Ideal Inventory Levels Automatically Corrects for Timing of Receipts and Out-of-Stock Inventory Recommends Open-to-Buy Based on Current Trends Forecasting and Planning

15. Open to Buy

16. Open to Buy Benefits Faster Turnover = Less Money Tied Up in Inventory Higher Profit Margins = Reduced Cost of Goods Sold Increased Return on Inventory Investment = Increased Inventory Productivity Maximize Sales = Constantly Looking for Opportunity and Potential Benefits

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