Monitoring your competitors’ sale data is useful when planning a competitive pricing strategy or releasing a new product. It is also important to pay attention to the global and local economy. If the local economy is depressed, it will result in sales declining. Economic depression will result in poor retail sales and affect the amount of inventory available.
An estimate based on recent performance is useful for new products that do not have a sale history or exposure. New product sales are dependant on marketing efforts. By paying attention to any declining sales numbers, you will be able to adjust your marketing strategy and inventory balance accordingly