Your product replenishment will be both simplified and optimized.
Your customers are presented with a well-organized product selection that is also visually appealing.
You can expect a significant increase in sales and stock rotation.
Your sales strategy will be realized at the store level.
Planograms maximize the selling potential of your entire shelf space.
While your short-term benefits can show you the power that a planogram can bring to your retail business, it’s the long-term benefits should effectively close the deal.
Both your store consistency and retailer brand awareness will be improved.
You’ll have an improved awareness of your space value as well as space return.
You’ll have better space allocation, which means an immediate increase in sales.
You’ll have a better grasp of your product and category performance.
Your data will be clean and your products classified.
Let’s unpack the short-term benefits first. Then there are short and long-term benefits. This kind of setup can create ownership and accountability. More organization means it’s easier for staff to stay on top of stock levels since there’s a place for everything, and everything should be in its place.Īnd if you’re working with wholesale, vendors, and other third parties, have a guideline as to what and how much space they’re responsible for. Plus, planograms support more effective inventory management. Planograms help you stay organized and allocate a purpose to every area in your store. Maximizing the use of that space can help you run a lean, cost-effective business. If there’s an item that customers regularly come back to purchase from your store, consider placing it somewhere that forces them to pass other items that you want to sell, or placing complementary products nearby. With a planogram, it’s easier to map out these routes. Planograms also allow for strategic product placement from a cross-merchandising standpoint. You’ll also be able to identify the highest-converting locations in your store, so you can put merchandise there that you want to prioritize. Place those items together to increase sales of stock that are getting old or stale. Look at historical sales data and compare that to your planogram to see which products sold most and where they were located, and do the same for slow-moving merchandise. Over time, you’ll learn how product placement impacts purchase behavior and can thus deduce strategies to capitalize on sales opportunities. Mapping it out to the exact location on the shelf is like taking a magnifying glass to your data, and that’s how you can glean really actionable insights to optimize product placement for in-store sales. When you use a planogram in your visual merchandising planning process, you’re able to collect data about how products and displays work. There are many benefits to using a planogram for planning out your store layout and they generally fall under two overarching advantages: maximizing sales and space. The details provided in the planogram show them exactly where to place each stock-keeping unit (SKU) and how many facings should be displayed for each. It can take the form of a diagram or draw on paper, or, increasingly, it’s likely to be a digital rendering displayed on a tablet or smartphone.Ī retail sales merchandiser consults the planogram in-store, using it to ensure a manufacturer’s products are displayed appropriately and attractively. The planogram takes into account buying data, sales trends and consumer behavior. They’re especially useful for big-box retailers or grocery stores that carry many products (and product categories) from a multitude of suppliers and have a lot of space to fill.įor instance, grocery stores have to know whether a product will fit on a certain set of shelves, which is where the level of detail included in a planogram is crucial.Ī planogram is usually created by a visual merchandising employee or a member of the advertising, marketing or sales team. In addition to being a visual representation of your store’s aisles, displays and point-of-sale a planogram will show you exactly where specific products are placed.Ī planogram is by no means the end-all, be-all solution to your visual merchandising needs. Planograms are detailed drawings of your store layout with special attention on product placement. What is a planogram?Ī planogram is a visual merchandising tool. Planograms help retailers plan the use of their space and gather data to help them make smarter merchandising choices that drive in-store sales.
#Retail store planogram how to#
From determining how to plan the footpath for customers to which product displays go where, effective use of physical space is fundamental to any brick-and-mortar retailer’s success.