Sales forecasting is an essential activity in retail business because it helps retailers estimate the quantity and value of products that are likely to be sold during a particular future period. In Buying and Merchandising-I, sales forecasting provides a systematic basis for planning merchandise purchases, inventory levels, pricing, promotions and store operations. An accurate forecast enables retailers to maintain the right merchandise in the right quantity at the right time, thereby improving customer satisfaction and profitability. One of the major importance of sales forecasting is inventory planning. Retailers need to determine how much stock should be purchased to meet expected customer demand. An accurate forecast reduces the possibility of overstocking and understocking. Overstocking increases storage and carrying costs and may result in markdowns, while understocking can cause stock-outs and lost sales. Forecasting therefore supports efficient inventory control. Sales forecasting is also important for merchandise buying decisions. Buyers use expected sales figures to decide which products, styles, sizes, colours and quantities should be purchased. It helps buyers allocate their budgets among different merchandise categories. Forecasts also assist in determining reorder levels and timing purchases according to expected demand. Another important benefit is financial planning. Expected sales provide a basis for preparing sales budgets, cash-flow plans and profit estimates. Retailers can estimate future revenue and plan expenditure accordingly. Forecasting also supports pricing