Retail sales forecasting is done for several different
reasons. It is important for clothing stores to analyze their future
sales projections so that they can determine the appropriate quantity of
inventory to maintain as stock in the store and what level to have at their
warehouse (learn about
Future sales projections are also needed by the garment
production department so that they can plan the
time & action calendars and decide how many units need to be manufactured
by a particular date.
It is important to get production started at the proper time, so that it
is available for the store at the time needed in the retail sales
Outside of our industry it is also important for financial institutions
to be aware of future sales performance.
For example, a retail sales forecast is important to banks, factors,
and even stock market traders. Sometimes we need to know how retailers performed last
year or quarter. And we often need to understand the forecast or projection
for next quarter and beyond. Wouldn’t it be great to be a stock trader
that knows how well a retailer will perform before the earnings are announced.
Possibly forecasting tools and software can assist the fashion industry
and the financial industry equally.
Retail Sales Forecast Resources:
Monthly and Annual Retail Trade (US Census)
You may also find the
sales statistics information provided by the Small Business Association
to be helpful.
Additional Research Guides:
Apparel Research Reports
Black Friday Sales Reports
Fashion Industry Statistics
Fashion Industry Statistics 1992 - 2014
Retail Sales Forecast Technology Resources:
SAS Retail Sales Forecast: Predict consumer response to price changes
and promotional activity in order to generate a demand forecast at the store
level. You can forecast demand for long- and short-lifecycle retail products
by considering critical causal factors – price, promotions and marketing
activity – and analyzing the effects across the whole category. Improve
forecast accuracy by analyzing consumers' response to price, promotion,
marketing and operational activities and their effect on demand. Price and
promotions will affect demand more than any other single factor. Most retail
forecasting solutions do not consider price a causal factor when generating
forecasts, but it's a core component of our solution. Having a better
understanding of demand means that it can be used as an input to the space
management function in order to calculate ROS, stock holding, turns, safety
stock and, therefore, required space.
Forecast Pro is a comprehensive forecasting and forecast management
system. This affordable and easy-to-use solution gives your team the capability
to create accurate and credible forecasts, along with the tools for efficiently
managing, monitoring and improving your forecast process.
Retail Planning from Demand Solutions: Demand Solutions Retail
Planning is designed to support the concept of continuous replenishment.
It makes the demand from each POS location available and empowers the account
manager to intelligently analyze the data to create a replenishment order.
The data can be managed and analyzed at aggregate levels while the system
calculates the replenishment order at the individual store/SKU level.
If you own a fashion boutique or large clothing store,
you may want to read the
business planning sales forecast article on the Small Business Association
Your sales forecast is the backbone of your business plan. People measure
a business and its growth by sales, and your sales forecast sets the standard
for expenses, profits and growth. The sales forecast is almost always going
to be the first set of numbers you’ll track for plan vs. actual use.
We hope that you agree with us that a retail sales forecast is important.
Hopefully this page helped you learn a little more about the subject.
Learn more about
fashion retail software.
You may also want to know about
fashion forecasting which is a bit different.