Forecasting for the Small Retail Business

Abstract

Often small business owners/managers feel they haveinadequate time for formal forecasting and/or that they lack the expertise to do so. Since forecasting is an important decision‐aiding tool, managers in small retail establishments can benefit by implementing a simple forecasting process. Doing so will enable them to better anticipate the firms future level of sales and lead to more successful operations. We suggest the use of relatively simple quantitative methods that have proven to work well in a wide variety of situations. Exponential smoothing, basic regression methods, and time series decomposition can be employed with relative ease in the context of a small retail business. Inexpensive computers and forecasting software make it possible for small retailers to utilize these forecasting methods in a cost effective and timely fashion.

Citation

Holton Wilson, J. and Miller, R. (1998), "Forecasting for the Small Retail Business", American Journal of Business, Vol. 13 No. 2, pp. 27-34. https://doi.org/10.1108/19355181199800010