Accurate sales forecasting is vital for balancing demand and supply and enhancing profitability in the retail sector. Deep learning (DL) models have shown promise in this area; however, most either handle temporal or spatial patterns in isolation. Moreover, many studies rely on synthetic datasets or omit critical contextual variables, reducing real-world accuracy. This study proposes a hybrid convolutional neural network (CNN)-long short-term memory (LSTM) model for retail sales forecasting using real-world data enhanced with environmental and demographic variables in term of holidays, salary days, protests, and weather conditions. CNNs capture spatial patterns, while LSTMs model temporal dependencies, making the hybrid architecture well-suited for multivariate forecasting tasks. Our model demonstrates a significant improvement in predictive performance, achieving a mean absolute percentage error (MAPE) of 4.16%, outperforming traditional and standalone neural models. By incorporating external factors, the proposed approach enables more reliable forecasting and supports informed decision-making in retail operations.
Mansur et al. (Thu,) studied this question.