What is a primary benefit of using historical sales data in merchandising?

Using historical sales data in merchandising primarily helps in developing more accurate forecasts. By analyzing past sales trends, retailers can identify patterns in consumer behavior, seasonal fluctuations, and demand cycles. This knowledge enables them to make informed decisions regarding inventory levels, restocking schedules, and promotional strategies. Accurate forecasting leads to better alignment of supply with customer demand, ultimately improving sales performance and reducing the likelihood of overstocking or stockouts.

While reducing total inventory costs might be a secondary effect of more accurate forecasting, it is not the primary benefit. Increasing store foot traffic and enhancing customer service quality may relate to other marketing strategies and practices but are not direct outcomes of analyzing historical sales data.