What does 'plan vs. actual' analysis help retailers evaluate?

'Plan vs. actual' analysis is a critical tool for retailers as it focuses on comparing the planned sales goals to the actual performance of their sales over a specific period. This evaluation allows retailers to assess how well their forecasts align with real-world results, providing insights into the effectiveness of their sales strategies, inventory management, and overall market conditions.

By analyzing the deviations between expected and actual sales figures, retailers can identify trends, uncover areas for improvement, and make informed decisions to optimize future performance. This analysis can highlight whether sales initiatives were successful or if adjustments are necessary for future planning. This approach is essential for fine-tuning retail strategies, ensuring that business objectives are met, and facilitating more accurate forecasting in the future.