Point of Sale (POS) systems generate rich data which is a resource being used by many retailers for exception reporting today. This same data can support many other advanced analytic applications, as well. Currently, research is underway using point of sale data to predict whether promotions will be successful and result in a sales lift of products.
In a recent experiment, POS data was analyzed to determine the effects of promotions on sales and more accurately, forecast the effects of future promotions on sales and inventory. A predictive model was created to forecast sales during promotions and price changes. In tests of the model, 77% of variance of sales was explained for a product.