In food retail industry, there is a real need of daily sales forecast to support the store managers in precise ordering, without compromising food waste and stock-outs. However, the time series which contain daily sales of perishable food in retail stores, are usually characterized by high volatility and skewness, which are also time varying. These are important constraints, but often ignored in forecasting. In order to overcome these issues, there is a need to develop a time series forecasting model which incorporates uncertainty in forecasts and influence of external variables such day-of-the-week seasonality, month-of-the year seasonality, holidays, festivals, price reduction and weather on the sales. In this study, SARIMA-MLR and SARIMA-QR models are developed and applied to forecast the daily sales of banana in a German retail store. Both of these models yield better predictions for out-sample data, compared to seasonal naïve forecasting, SARIMA, and MLPNN models. Other than this, the derivation of inventory policy from the estimated sales forecast is one of the important problems in stock management in food retail industry. The SARIMA-MLR model produces only the point forecast, i.e., the mean forecast. As the true distribution of demand or sales is not normal, the estimation of prediction intervals from the point forecast is not going to reflect the reality. However, the SARIMA-QR model has additional benefits over the SARIMA-MLR model as follows: (i) it helps to forecast the higher service levels directly and accurately without extrapolation, (ii) the QR results offer detailed and focused insights into the effects of the covariates, and (iii) when the focus of interest is on the higher (for promotional activities) or lower sales (due to extreme weather conditions), the model can aid the management to make accurate and proper decisions.