Retail Sales Forecasting Using Regression Analysis in Data Science


Shops need to know what people will buy. This helps them get ready. It also helps them earn more money. This is called forecasting. It means to guess what will happen next.

You can learn this in a Data Science Course in Noida. The course shows you how to use tools. It teaches you how to use numbers. It also teaches you how to look at past sales.

What Is Regression?

Regression is a mathematical method. It finds links between things. For example, more people shop in December. This means more sales. Regression sees this pattern. Then it helps shops plan better.

Regression can use one thing. This is called linear regression. Or it can use many things. This is called multiple regression.

Example

Look at the table. It shows how sales go up when more people come to the shop.

Week

Number of Visitors

Sales (in ₹)

1

100

5,000

2

150

7,500

3

200

10,000

As visitors go up, sales go up too. This is a pattern. Regression helps us find this pattern.

Why Shops Use Regression?

Shops want to stock the right items. If they know what people will buy, they do not waste money. They also do not run out of stock. This makes customers happy.

They also plan discounts. When sales are low, they offer more deals. When sales are high, they earn more profit.

Graph Example

The line in the graph goes up. This shows growth. Regression makes this line

How to Build a Model?

First, collect past sales data. Then clean the data. Next, choose the features. For example, days, weather, holidays.

After that, use a tool. You can use Excel. Or you can use Python. These tools make the regression model. Then test it with real data.

What You Learn in a Course?

A Data Science Course in Gurgaon can help. It teaches about data. It teaches how to clean data. It teaches how to make models. It also teaches how to check if the model is correct.

A Data Science Course in Delhi will give you real examples. You work on retail data. You learn how shops use data to sell better.

Problems in Forecasting

Sometimes models are wrong. Maybe there was a festival. Maybe it rained. Maybe the prices changed. These things change sales. The model must learn these too.

That is why shops keep updating the model. They add new data every week.

Things That Affect Sales

Factor

Effect on Sales

Holidays

Increase

Rain

May decrease

Price Drop

Increase

New Product

Unknown

Store Closed

Decrease

These things are part of the model. They make it smarter.

Conclusion

Regression models help shops plan better. They tell what to sell and when to sell. They help shops earn more. They also help customers find what they need. With training, you can learn how to build these models. Join a course. Work on real problems. Start your journey in data science.