Optimization of Store Layout using Market Basket Analysis

Abstract

Store layout is a crucial factor for attracting customers in a retail store. Use of appropriate store layout results in an increase in sales of the store. Grid layout, free flow layout, spine layout is a few commonly used store layouts in the retail store. The grid layout is used for supermarkets but the placement of different products as per the preference of the customer is quite an arduous task there. Purchase history of a supermarket can be utilized to predict the preferences of the customers and can be utilized as an aid for designing a better store layout. Market basket analysis is employed to get insights from the POS data of the supermarket. Market basket analysis (MBA) helps to extract the various association rules from the purchase data of the shoppers. A customer can pick different items identified with the items that the person has just put in his or her shopping basket or cart which frames an association rule. The extraction of such rules can help in the appropriate product placement in the store as per the shopper’s preference.