What is Demand Forecasting in Retail? Explained

Demand forecasting in retail involves predicting future customer demand for products based on historical data, market trends, and various influencing factors. Retailers use demand forecasting to optimize inventory management, streamline supply chain operations, and ensure product availability. By analyzing past sales patterns, seasonality, and external factors, retailers can make informed decisions regarding purchasing, production, and stocking levels. Effective demand forecasting minimizes stockouts, reduces excess inventory, and contributes to a more efficient and responsive supply chain. In the dynamic retail landscape, accurate demand forecasting is a critical tool for staying agile and meeting customer expectations.