Tools for Merchandise Forecasting

If these basic factors aren’t considered in a formal planning process and, in turn, methodically applied to item forecasts, even the most sophisticated formal forecasting system won’t improve your inventory accuracy.

At the very least, you should have an “average item index” score that shows how each carry-over item performed compared to the average revenue per square inch for all items [during] the same season last year. The score permits assortment planning from a top-down perspective, while forecasting is used to revise plans from the bottom up (based on future projections).