FARE: Factor-Aware Retrieval with Error-Guided Fusion for Retail Forecasting
Retail sales forecasting underpins inventory planning, yet promotions and calendar events reshape short-term demand. Although each factor usually has historical occurrences, the complete factor combination of a target week often has few precedents. The challenge is therefore to retrieve informative partial matches and weight them by their reliability, which varies across series. We propose FARE(Factor-Aware Retrieval with Error-Guided Fusion), which ranks historical weeks separately for each known target-week factor and merges the selected weeks into a factor reference under a fixed budget. Guided by shrunk errors from completed development weeks and the current disagreement among candidates, a first gate mixes this factor reference with a shape reference from similar sales histories, and a second gate controls how strongly the mixture corrects a backbone forecast. Both gates remain fixed during testing. On Favorita, M5, Rossmann, and Rohlik, FARE reduces the weighted absolute percentage error (WAPE) of five backbones by 11.46%, 4.06%, 14.63%, and 10.16% on average. With Chronos-2 frozen, FARE also outperforms conventional and existing enhancement methods, including supervised residual correction and retrieval augmentation. Code is available at https://github.com/HousonGu/FARE .
Authors
- Haifeng Tang (ORCID: https://orcid.org/0009-0009-9160-9690)
- Chenghao Gu (ORCID: https://orcid.org/0000-0001-6699-9388)
- Shenghao Wu (ORCID: https://orcid.org/0009-0003-8624-8057)
- Wei Luo (ORCID: https://orcid.org/0000-0003-0043-0687)
- Zhuokang Shen
- Tingxuan Zhu
Publication Details
- Journal
- arXiv (Cornell University)
- Published
- 2026-10-29
- DOI
- https://doi.org/10.48550/arxiv.2610.40160
- Primary Topic
- Forecasting Techniques and Applications
- Type
- preprint