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In recent years, many data mining methods have been proposed for finding useful and structured information from market basket data. The association rule model was recently proposed in order to discover useful patterns and dependencies in such data. This paper discusses a method for indexing market basket data efficiently for similarity search. The technique is likely to be very useful in applications which utilize the similarity in customer buying behavior in order to make peer recommendations. We propose an index called the signature table, which is very flexible in supporting a wide range of similarity functions. The construction of the index structure is independent of the similarity function, which can be specified at query time. The resulting similarity search algorithm shows excellent scalability with increasing memory availability and database size.