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This study involves the use of Data mining in sophisticated data analysis tools to discover previously unknown, valid patterns and relationships in large data set. These tools can include statistical models, mathematical algorithm and machine learning methods. Consequently, data mining consists of more than collection and managing data, it also includes analysis and prediction. The work is divided into 9 chapters which are useful to researchers and data analysts.Chapter one is about research objective and scope of the thesis. Chapter two is focused in previous work related to my work,chapter three gives brief explanation about data warehouse and OLAP.Moreover, Chapter four and five discuss about challenges and issues of data mining in current scenario. Chapter six is elaborated the performance of data mining algorithms in weka tool.In addition with chapter eight explains comparative analysis of state-of-the art data mining algorithms on various data set along with compares commercial and open source data mining tools. Chapter nine discuss how to enhance decision making approach in retail data.