Market basket analysis for Reliance time out stores

Abstract

Organized retail is considered to be one of the fast growing industries in the Indian context. All the major corporate groups have setup the retail chains. Supermarket retailers are actively engaged in formulating pricing strategies. However as of today none of the major retail chains are making profits. Given that there are many players in the market and the price conscious nature of the Indian customers, retail chains can grow and stay profitable provided they maximize the revenues through multiple innovative initiatives. Sales in each shop are influenced by various factors which are regional and demography specific in nature. Hence it is important that each shop takes tailored strategic choices to attract more customers as well as increase the CLV revenue from the existing customers. For many of these strategic decisions the analysis and understanding of the customer buying pattern is essential. Due to the current automated computer and barcode identification systems in place the transactions are already recorded in a database. The sales data is now available in digitized format and can be queried as required and analyzed as needed. Data mining would be one of the most useful techniques in this arena.