RETAIL SALES FORECASTING : CONCEPT AND ISSUES

By Pritam DasRoll- 12DM006Sec-A

RETAIL SALES FORECASTING

This is a method of analyzing the future trends in a retail outlet depending upon the historic data of the outlet.

Its purpose is to as accurately, as possible to predict what quantity of goods will be sold .

A forecast works as a management control system .

Forecasts are one instrument for management as they attempt to decrease the role of chance when dealing with its environment.

The sales forecast sets a believed future sales volume, which gives indicators to the purchasing, the production, the logistical, the financial and the marketing function of an organization.

A sales forecast is usually made for a specific period of

time, this may be weeks or a season or a year.

The person who is to make forecasts for the product

group or category needs to be aware of --

>>The changes in tastes and attitudes of consumers

>>The size of the target market

>>And the changes in their spending pattern

CONTINUED

1 • Reviewing past sales

2 • Analyzing the changes in economic conditions

3 • Analyzing the changes in the sales potential

4• Analyzing the changes in the

marketing strategies of the retail organization and the competition

5 • Creating the sales forecast

PROCESS OF RETAIL SALE FORECAST

ISSUES EFFECTING REATIL SALES FORECASTING

Trends- In the retail industry which is in focus in this essay trends and seasonality are of huge importance when it comes to forecasting sales.

Weather- Weather is an unpredictable variable but still very important for the retail industry.

Calendar effect- The calendar effect involves when public holidays appear throughout the year and what effect it has on sales dependent on what day of the week it occurs.

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