Retail’s Planning Gap: What Buyers Need To Know in 2025

Forecasting remains one of retail’s biggest challenges, and the price of getting it wrong is steep. According to McKinsey, demand forecasts are off by an average of 30%. That means, for a retailer buying £10 million worth of stock, that could mean £3 million in over- or under-ordered inventory. Planning the right product range isn’t just about knowing what sold last year. This retail planning gap reflects more than just forecasting errors; it’s about anticipating demand, accounting for long supplier lead times, hitting margin targets and managing risk, all in a market that rarely stands still.

Yet many buyers are still expected to make complex, high-stakes decisions with outdated data and disconnected tools. The result? Missed sales, margin cuts and excess stock that’s hard to shift. And if things don’t go to plan? The cost shows up fast in lost sales and heavy end-of-season markdowns.

Planning Without Full Visibility

Most buyers still plan ranges using a combination of historical sales data and spreadsheet-based reports. While these tools tell you what happened last season, they often lack real-time insights into what’s happening now. This lag makes it difficult to spot underperforming lines early, react to fast sellers or rebalance stock before the season ends. And once the buying window closes, the margin risk starts climbing. In reality, buyers are expected to make big, high-impact decisions with limited visibility and little time.

When Planning Goes Wrong

Even the most experienced buyers face challenges when visibility is limited. You can’t adjust what you can’t see, and that’s where planning begins to unravel:

• Overbuying leads to excess stock that must be discounted
• Underbuying results in missed sales opportunities and stockouts
• Late or cautious buys leave little time to react to actual performance
• Seasonal misalignment turns potential bestsellers into clearance items

Often, these aren’t poor buying decisions, they’re a direct result of planning with incomplete, outdated or disconnected data. Without a clear view of what’s selling, where and at what pace, buyers are forced to make decisions without the full picture. And in seasonal retail, that can cost the business margin, space and trust.

Seasonality Raises the Stakes

Planning is always hard, but seasonal retail raises the stakes. Whether it’s holiday ranges, back-to-school campaigns or spring launches, the product window is short. If demand shifts mid-season and you can’t pivot, stock turns into liability. Suppliers often require orders months in advance, leaving little room to adapt once real sales data comes in. That’s when missed signals turn into overstock and markdowns. So, what is the solution? How can retail buyers make faster, more accurate planning decisions with less risk?

Is ERP the Holy Grail for Retailers?

No system can eliminate uncertainty, but ERP comes close to giving retail buyers the tools they need to plan with more precision and less risk. An ERP platform pulls together product, sales, inventory and supplier data into one place, giving buyers the live, accurate view they need to plan with confidence and adjust faster when things change.

With an ERP system, like Merret Pro in place, buyers can:

• Monitor real-time sell-through across stores and channels
• Track product performance by size, colour and style
• Flag slow movers early and act before they hit markdown risk
• Reallocate or replenish stock based on current performance
• Make future buys based on live trends

Empowering Better Planning Decisions

With real-time data and clear visibility, buyers can make confident, proactive decisions. ERP systems like Merret Pro give buyers the control they need to plan accurately, reduce markdowns and respond faster to demand.

If your buying team is still relying on spreadsheets or outdated tools, it might be time to rethink your approach. Let’s talk about how Merret Pro can help you close the planning gap and buy with confidence.

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