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Favorita Store Sales Forecasting

naveen11304
July 8, 2026

About

I built a time series forecasting model to predict total daily retail sales using the Favorita Grocery Sales dataset from Kaggle (~3M records across 54 stores and 33 product families, 2013โ€“2017). After cleaning the data โ€” handling nulls in oil price data, removing transferred holiday duplicates, and capping extreme outliers at the 99.9th percentile โ€” I aggregated sales to a single daily total time series and enriched it with two external regressors: a national holiday flag and daily oil price (a known macroeconomic driver in Ecuador's economy).
I trained a Prophet model on ~4.5 years of data, holding out the final 32 days to validate accuracy, then forecasted the following 16-day period. The model achieved a 7.3% MAPE on the holdout set โ€” a strong result for retail forecasting, where 10โ€“20% is typical โ€” and the forecast projected daily sales in the $700Kโ€“$1M range for the Aug 16โ€“31 window, capturing weekly seasonality and holiday effects.

Key insight: Sales show clear weekly and holiday-driven patterns, and oil price shows a mild relationship with overall demand. A noted limitation is that the model doesn't explicitly capture Ecuador's well-known "payday" sales spikes around the 1st and 15th of each month โ€” a good next step for improving accuracy further.

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