What effect do trends have on merchandise planning?

Trends have a significant impact on merchandise planning, primarily because they provide critical insights into customer preferences and market dynamics. By understanding current and emerging trends, retailers can make informed decisions about product assortments, quantities, and timing of stock to meet consumer demand.

Forecasting future stock needs is essential as it allows retailers to anticipate what products will be in demand. Trends highlight shifts in consumer behavior, fashion aesthetics, and purchasing patterns, which can change rapidly. By accurately forecasting based on these trends, businesses can better align their inventory with what customers are seeking, thus minimizing excess stock and reducing the risk of markdowns on unsold merchandise.

In contrast, trends do not simply serve as a reference to allocate resources for past seasons or hinder adherence to a merchandise plan but actively guide retailers in planning for the future. Understanding and leveraging trends allows for a more responsive and dynamic approach to merchandise planning.