What types of data can help inform product merchandising decisions?

The chosen answer encompasses a comprehensive understanding of the various types of data that contribute to effective product merchandising decisions.

Sales data is crucial because it provides insights into what products are performing well and which are not. By analyzing sales trends over time, businesses can identify which items are popular, seasonal, or subject to diminishing returns, allowing for strategic adjustments in inventory and marketing.

Market trends offer essential context regarding the external environment in which a business operates. By keeping abreast of industry shifts, emerging competitors, and new technologies, retailers can anticipate changes in consumer behavior and adapt their product offerings accordingly.

Customer preferences, gathered through surveys, feedback, and purchasing history, help businesses understand the specific needs and desires of their target audience. This data enables retailers to tailor their assortments, ensuring that the right products are available to meet consumer demand.

Combining sales data, market trends, and customer preferences provides a holistic view, enabling more informed and strategic merchandising decisions that align with both consumer needs and business objectives.