What is Merchandise Financial Planning?

Merchandise Financial Planning (MFP) links top-down targets and open-to-buy with bottom-up category and assortment plans. It sets sales, margin, receipt, and inventory guardrails; simulates scenarios (price, promo, mix) before committing; and continuously reconciles plans in-season as trends change. With MFP aligned to demand, allocation, and space, retailers reduce risk, protect cash, and hit KPIs with fewer last-minute course corrections.