What is retail forecasting?

Retail forecasting is the process of predicting future sales, demand, and inventory needs within the retail industry. It uses historical data, market trends, and analytical models to estimate how much of each product will be sold over a specific period. Accurate retail forecasting helps businesses optimize inventory, reduce costs, and improve customer satisfaction by ensuring the right products are available at the right time. This process often involves advanced software tools and collaboration between various departments, such as marketing, sales, and supply chain management.