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Retail Analytics

Where retail intuition and the actual numbers part ways: why price sensitivity alone pins down the optimal markup, why a basket-analysis metric can call a negative association positive, and why targeting your likeliest buyers is often the fastest way to waste a promo budget.

Your starting point

01 Start here

Confidence lies about which products sell each other

Confidence ignores how common the consequent already is; lift compares against that baseline. 7 min read · Foundation Read the first note

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The reading order

Each note builds on the question before it, without hiding the rest of the route.

02 Price sensitivity alone sets your optimal markup Under the stated demand assumptions, the optimal markup is pinned down by elasticity.
03 Targeting your likeliest buyers wastes most of your promo budget Promotion targeting should rank incremental responders, not customers already likely to buy.

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