2. 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.
3. CONTINUED
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
4. PROCESS OF RETAIL SALE FORECAST
1
• Reviewing past sales
• Analyzing the changes in economic
2 conditions
• Analyzing the changes in the sales
3 potential
• Analyzing the changes in the marketing strategies of
4 the retail organization and the competition
5
• Creating the sales forecast
5. 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.
