Historical sales data refers to the records of sales transactions over a specific period. This data includes information such as the quantity of products sold, sales revenue, and customer demographics. Businesses analyze this data to identify trends, understand customer preferences, and make informed decisions about inventory and marketing strategies. By examining historical sales data, companies can forecast future sales and adjust their operations accordingly. This information is crucial for budgeting, planning promotions, and optimizing supply chains. Overall, historical sales data serves as a valuable resource for improving business performance and achieving growth.