Merchandise forecasting involves anticipating customer demand for certain products and services, enabling businesses to make more informed decisions regarding resource allocation, budgeting, and purchasing. This forecasting process takes into consideration a variety of factors such as current sales trends, seasonality, competitor insights, and macroeconomic indicators. The goal is to ensure that the right product is available in the right quantity at the right time – enabling retail businesses to maximize sales, minimize losses, and maintain a profitable balance between supply and demand.