27% Increase in Sales Achieved by a Leading Retail Chain through Market Basket Analysis

Sep 23, 2016

Business Challenge

Using advanced analytics techniques to assess current performance levels and determine ways of improvement.

A leading retail chain, with a variety of stores in North America, wanted us to conduct a market basket analysis to assess the current market basket performance and determine ways of improvement.

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Lack of visibility on current performance levels and improving product lift.

The client wanted to understand the trends on the market basket performance, the seasonality effect based on days of sales, and the impact of store size and other factors on the basket performance.


Market basket analysis solution based on regression analysis.

We conducted a deep dive analysis of the current performance on the various product baskets and the impact of other factors. We implemented support, confidence, and lift analysis which used regression analysis for assessing the impact of store size on the basket size and value. We also defined various scenarios for market basket combinations and resulting profitability.

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Increase in sales up to 27%.

The client achieved an in-depth analysis of the basket performance along with combinations that work well and have a better lift. We also implemented a statistical model based impact analysis technique that helped clients in deriving insights to focus only on factors that impact the sales volume and value. Based on this the client was able to increase its sales by up to 27%.

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