Final answer:
The first step in merchandise management planning is (A) developing a forecast for sales. This is a foundational action that informs other aspects of merchandising such as inventory levels and business strategy alignment.
Step-by-step explanation:
The first step in merchandise management planning is A. Developing a forecast for sales. This involves analyzing past sales data, market trends, and other relevant information to make informed predictions about future sales. Forecasting sales is crucial as it helps in determining the inventory levels, setting financial goals, and aligning the merchandise plan with the overall business strategy.
Before a business can execute a merchandise plan (B), develop a business plan (C), determine appropriate inventory levels (D), or penetrate a new market (E), it needs to have a clear understanding of expected sales, which guides these subsequent steps.