Use planogram software – DotActiv offers free planogram software for newbie retailers, but there are other paid-for options available such as SmartDraw and Shelfstock. There are several ways to create your own diagram: Promote specific products or fast-moving merchandise to increase salesīe used as a negotiation tool with brands and suppliers – customers are drawn to products at eye level on the shelf, resulting in higher sales so you can command a premium for these prime locations Improve shopper experience and increase customer satisfaction Optimize merchandising and maximize shelf space – retail is expensive and you want to make the most of every square inch The obvious advantage is the uptick in retail sales by having a properly planned store layout, but planogramming can also: best-selling), products based on margins and products organized by market share.Įven if your retail operation is small with a few product categories, using a planogram can be good for your sales because it provides you with an optimal sales layout. Planograms can be further subdivided into vertical product placement, horizontal product placement, products according to commercial merit (e.g. It’s also seriously detailed, including lots of information about product dimensions, colors, packaging etc., so they know exactly what sits on what shelf, at what height, how much space is allocated and where it’s located. In their case, a product placement strategy is vital.

They’re used by big grocery stores which have a lot of products to sell from multiple suppliers and a lot of space to fill. It will also form part of the overall visual merchandising strategy. Data-driven planograms use information gathered about shelf height, retail sales, sales volume and consumer behavior to provide retailers with a diagram that maximizes space allocation and product placement.Īn effective planogram will ultimately lead to improved space planning and a better shopper experience, which drives sales. Definition of a planogramĪ planogram, also known as a Plan-O-Gram or POG, is a tool to help retailers plan their store layout, the placement of merchandise and product displays.

Fortunately, planograms can help you design your store and act as an important tool for layout and merchandising. There is an art to product placement and understanding consumer journeys through a retail store. Retailers pay a lot of money to rent their stores, and what they do with their product display and store layout plays an essential role in ensuring profit by maximizing sales.

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