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Retail Analysis With Walmart Data

Analysis of sales data to forecast supply and demand during holidays and to build a statistical model

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Ramaseshu Machepalli
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66 views

Retail Analysis With Walmart Data

Analysis of sales data to forecast supply and demand during holidays and to build a statistical model

Uploaded by

Ramaseshu Machepalli
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Retail Analysis with Walmart Data

Machepalli Ramaseshu
Data Science with Python (Simplilearn)

Abstract
The aim of the project is to analyse the sales of the various stores of Walmart
and predict the sales and demand accurately. There are certain events and
holidays which impact sales on each day. The business is facing a challenge due
to unforeseen demands and runs out of stock sometimes, due to the
inappropriate machine learning algorithm. An ideal ML algorithm will predict
demand accurately and ingest factors like economic conditions including CPI,
Unemployment Index, etc.

Keywords
Weekly sales, Monthly sales, Temperature, Markdown, Linear regression.

Business Problem
The decision makers of Walmart should be able to analyse the various factors
affecting the sales in their stores. The various factors include fuel price,
temperature, Unemployment, CPI etc.

Analysis Tasks
 Which store has maximum sales
 Which store has maximum standard deviation i.e., the sales vary a lot.
Also, find out the coefficient of mean to standard deviation
 Which store/s has good quarterly growth rate in Q3’2012
 Some holidays have a negative impact on sales. Find out holidays which
have higher sales than the mean sales in non-holiday season for all stores
together
 Provide a monthly and semester view of sales in units and give insights
Data Understanding
This is the historical data that covers sales from 2010-02-05 to 2012-11-01, in
the file Walmart_Store_sales. Within this file you will find the following fields:
 Store - the store number
 Date - the week of sales
 Weekly_Sales - sales for the given store
 Holiday_Flag - whether the week is a special holiday week 1 – Holiday
week 0 – non-holiday week
 Temperature - Temperature on the day of sale
 Fuel_Price - Cost of fuel in the region
 CPI – Prevailing consumer price index
 Unemployment - Prevailing unemployment rate

Holiday Events
Super Bowl: 12-Feb-10, 11-Feb-11, 10-Feb-12, 8-Feb-13
Labour Day: 10-Sep-10, 9-Sep-11, 7-Sep-12, 6-Sep-13
Thanksgiving: 26-Nov-10, 25-Nov-11, 23-Nov-12, 29-Nov-13
Christmas: 31-Dec-10, 30-Dec-11, 28-Dec-12, 27-Dec-13

Data Preparation
 Converted date to datetime format
 Checking for missing values and there are none in the dataset
 Splitting the date column into Day, Month and Year columns to facilitate
the analysis of monthly sales and such.

Fig 1 New dataset after modification


Q1. Maximum and minimum sales among the stores.

Fig 2 Depicting the Total sales of each store

As we can see from Fig 2 that store 20 has Maximum sales and store 33 has
Minimum sales.

Q2. Which store has maximum St. Deviation and also find out the
coefficient of mean to St. Deviation?
The store with maximum standard deviation is 14 with 317570 $.

Fig 3 Sales distribution of Store 14


The store with maximum coefficient of mean to standard deviation is Store
35

Fig 4 Sales distribution of Store 35

Q3. Which store as good growth rate in Q3 of 2012?

Fig 5 Growth rate of stores

The store with good growth rate in third quarter of 2012 is Store 4 with
25652119.35 $
Q4. Some holidays have a negative impact on sales. Find out holidays which
have higher sales than the mean sales in non-holiday season for all stores
together

Fig 6 Sales on Superbowl days

Fig 7 Sales on Labour days

Fig 8 Sales on Thanksgiving days


Fig 9 Sales on Christmas days

We can see from the above graphs that there is an increase in sales during
Thanksgiving and decrease in sales during Christmas.

Fig 10 Yearly sales on Holidays


Q5. Provide a monthly and semester view on sales and give insights

Fig 11 Monthly view of sales in 2010

Fig 12 Monthly view of sales in 2011

Fig 13 Monthly view of sales in 2012


Fig 14 Monthly view of sales

From the above graphs we can infer that the sales are highest in December
and lowest in January.

Fig 15 Yearly view of sales

From the above graph the sales are highest in 2011 and lowest in 2012.
Statistical Model
The variables we are considering in building the model are temperature, CPI,
Fuel Price and Unemployment
a. Linear regression model:

Fig 16 Linear Regressor scatter plot

Accuracy: 12.820941389380858
Mean Absolute Error: 451424.22420130763
Mean Squared Error: 294645504043.84894
Root Mean Squared Error: 542812.5864825252

b. Rand Forest regressor model:

Fig 17 Random Forest regressor scatter plot


Accuracy: 95.40338188997183
Mean Absolute Error: 66646.27660289807
Mean Squared Error: 15595638157.355875
Root Mean Squared Error: 124882.49740198134

Random forest regressor is the model with highest accuracy.

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