Retail planning glossary
Plain-English definitions of the terms behind retail and apparel planning — each cross-linked to a calculator or guide.
Open-to-Buy (OTB) →
Open-to-buy (OTB) is the amount of inventory, in retail dollars, a buyer can still receive in a period without exceeding the plan. It is calculated as planned end-of-month stock + planned sales + planned markdowns − beginning stock − merchandise on order.
Sell-Through Rate →
Sell-through rate is the share of received units that have sold over a period — units sold ÷ units received × 100. It signals how fast a style is selling and whether it needs a reorder or a markdown.
Gross Margin Return on Inventory (GMROI) →
GMROI (gross margin return on inventory) is the gross-margin dollars earned per dollar of average inventory at cost — gross margin ($) ÷ average inventory at cost. A result above 1.0× means margin exceeds the inventory investment.
Weekly Sales, Stock & Intake (WSSI) →
A WSSI (Weekly Sales, Stock & Intake) is a weekly retail plan that tracks the flow of stock through a season. Its core identity is closing stock = opening stock + intake − sales, with each week’s closing becoming the next week’s opening.
Time & Action Calendar (T&A) →
A time & action (T&A) calendar maps every apparel production milestone backward from the in-store date, with an owner and a lead time on each step and a buffer at the end — so a slip surfaces the moment a milestone moves.
Work in Progress (WIP) →
In apparel, work-in-progress (WIP) is the set of orders currently in production — between the placed PO and the received delivery. Tracking WIP by style and milestone shows where each order sits and whether it is on track for the in-store date.
Markdown →
A markdown is a permanent reduction in an item’s retail price to clear inventory. Markdown % — markdown dollars as a share of sales — is a core margin metric: every point of markdown is a point of gross margin given up.
Inventory Turnover (Turns) →
Inventory turnover (turns) is how many times inventory sells through and is replaced in a year — cost of goods sold ÷ average inventory at cost. Higher turns mean the same capital generates more sales.
Size Curve →
A size curve is the percentage distribution of a buy across sizes for a style — what share of units go to each size, whether an S–XL apparel run or a full footwear size run. Buying and replenishing to the right curve is what keeps core sizes in stock through the season.
Sell-In →
Sell-in is the volume a brand books into its wholesale accounts for a season — the orders written at market, before any consumer buys. It is distinct from sell-through, which measures how that product then sells to the end consumer.
Linesheet →
A linesheet is the sales document that presents a season’s assortment to wholesale buyers — each style with its image, colorways, sizing, wholesale and retail price, minimums, and delivery window. It is the core selling tool of a wholesale season.
Available to Sell (ATS) →
Available to sell (ATS) is the inventory a brand can still commit to orders — on-hand and incoming stock, net of what is already allocated or sold. Accurate ATS is what lets a wholesale or DTC team promise a delivery without overselling.
Tech Pack →
A tech pack is the specification document a brand hands a factory to make a style — construction details, measurements (the spec/graded measurements), bill of materials, trims, labels, and tolerances. It is the source of truth for what gets produced.
Landed Cost →
Landed cost is the total cost of getting a unit into your warehouse — first cost (ex-factory) plus freight, duties, insurance, and handling. It is the true cost basis for margin, not the quoted first cost alone.
On-Time Delivery (OTD) →
On-time delivery (OTD) is the share of orders that arrive by their committed date. In apparel it is measured to the floor-set or in-store date — and to wholesale accounts, to the cancel date on the order.
Gross Margin →
Gross margin is the profit left after the cost of goods — net sales minus COGS, usually shown as a percentage of sales. It is the headline profitability number a merchandising plan is built to protect.
Initial Markup (IMU) →
Initial markup (IMU) is the difference between the first ticketed retail price and the cost of goods, as a percentage of retail. It is the margin you start the season with — before any markdowns, allowances, or shrink erode it.
Maintained Markup (MMU) →
Maintained markup (MMU) is the margin actually realized after markdowns, allowances, and shrink — the gap between net sales and cost of goods, as a percentage of net sales. It is what survives of the initial markup once the season has played out.
Replenishment →
Replenishment is the automatic reordering of continuity (core, never-out) products to a target stock level as they sell — distinct from the seasonal buy of fashion styles. It keeps basics in stock against steady demand using a model stock or min/max.
Allocation →
Allocation is the decision of how to split a buy across locations or channels — which stores, sizes, and quantities receive each style. Good allocation puts the right depth where demand is, to the size curve, rather than spreading evenly.
Line Board →
A line board (or visual line plan) is the visual layout of a season’s styles — arranged by category, delivery, and price — that lets a design and merchandising team see the whole range at once and balance it before it is finalized.
Color Story →
A color story is the planned palette for a season or delivery — the coordinated set of colors styles are offered in, designed so the range merchandises together and a customer can build outfits across it.
Lab Dip →
A lab dip is a small fabric swatch the mill dyes to a target color for the brand to approve before bulk dyeing. Approving lab dips on time is a common critical-path milestone — a late approval delays the whole production timeline.
Bill of Materials (BOM) →
A bill of materials (BOM) is the full list of components that go into a style — fabrics, trims, labels, and packaging, with quantities and suppliers. It is the basis for costing a garment and for instructing the factory what to use.