What are the benefits of using planograms in retail sales?

Planograms in retail sales improve visual merchandising, increase sales, optimize space utilization, maintain brand consistency, and enhance the customer experience.

So, every store has the same layout. It makes stocking shelves easy. Every item has its place in the store. You know what is missing very easily so you can order these missing items.

Planograms in retail sales offer numerous benefits including optimized shelf space utilization, enhancing product visibility, and improving customer experience. They ensure consistent product placement, aiding in brand recognition and customer navigation. By aligning with consumer behavior and preferences, planograms increase sales and reduce out-of-stock instances. Additionally, they facilitate inventory management and streamline restocking processes, ultimately driving profitability and operational efficiency.

Planograms are crucial tools in retail operations for optimizing product placement and store layout. Key benefits being : 1. Maximised Sales: By strategically placing products based on consumer behavior and sales data they help increase visibility of high-margin items thus boosting sales. 2. Enhanced Shopping Experience: They ensure a logical product placement making it easier for customers to find what they need & improving their shopping experience. 3. Consistency Across Locations: For retailers with multiple locations planograms ensure a uniform store layout and product placement delivering a consistent brand experience. Specific planograms are powerful tools for maximizing sales , enhancing cx and improving inventory management .

Customer side: Make it as easy as possible for the customer to choose while standing in front of the respective category shelves. For this the planogram should follow the customer's psychological decision process. Example coffee category: Vertical division into ground coffee, bean coffee, instant coffee, others. Inside the sub-category horizontal placement by pack size (big sizes below) and category brand/quality tiers. Retailer side: Define number of facings and shelf stock according to sales, taking into account order rhythm, minimum order quantities and lead time. Planograms also help staff with layout information when restocking. PS: Cardinal shopfloor sin - Do not touch the price tags, otherwise your planograms will 'fluctuate'...

Planograms play a pivotal role in maximising sales and profit balancing customer needs with operational efficiency and consistency together with health and safety. By replicating optimal displays across stores, using appropriate equipment , they maintain standards and maximize space efficiency, ultimately boosting productivity. Good planograms minimize waste and backroom stock thereby streamlining operations. Compliance is easy to measure. In summary, planograms are essential for driving retail performance.

Planogram done by experts in the business and help retail stores to have the same standards with best attractive look and product handling and managing over stocking. Its also give consider Customer flow and plan accordingly that will lead to higher sales

Retailers should use planograms if they want consistency, operational benefits and give the customer ease of shop while ensuring the right range and maximising space allocation to drive sales. The best planograms will go through the process of planners working along side suppliers with retailer feedback to develop a balanced range with the the company strategy in mind. Yearly range reviews will keep the planograms up to date with NPD, market changes and trends, ensuring the core range is right and creating a point of difference to become best in class.

Starting point- a list of items, defined linear floor space, fixture height and depth. Aim is an attractive, logical display for customers which is operationally efficient for stores. Use shelves/ bars and pins to create a "wall of product" no air gaps. Display products in normal orientation for safety/ visibility. Space proportional to rate of sale- means easy replenishment (supplier tray packs used where possible) and minimising backroom stock. Minimum of 2 facings / 1 outer case/ tray pack except slow sellers/ space is severely limited. Construct the planogram using real products. Create a clear electronic or paper version detailing shelf specs, and facings for onward communication.

From the centre is required : a properly built planogram respecting customer needs, aesthetics, and operational efficiency; all new items are available in the store; clear communication including handling of discontinued items. At store, plan when the PoG is to be implemented ( ideally outside trading hours), run down existing display to minimise stock handling and "odds".Ensure all new lines are available. One shelf at a time, empty the shelves, clean, and remerchandise. Replace damaged shelf edge labels / shelf edge stripping. On completion make full check, price verification, ensure all promo POS/new line indicators in place. Be sure to plan extra time to fill. Deal with discontinued.

In the centre, make sure the planogram is accurately created. Much better to find errors before its published, or worse still implemented in 100's of stores. Ensure it is physically displayed in a display centre and validated. Ensure all new items are in store by time of implementation. Communicate clearly to stores WHY the planogram is changing. In stores check that the planogram you have received is valid or your store. Plan the implementation including ensuring you have any additional equipment that may be needed. After implementing, monitor stock levels and adjust orders if needed. Make regular line by line checks ( minimally 3 monthly) to ensure no items are lost. Be ready to explain changes to customers.

Planograms can also educate the Customer and influence the sales structure By showing different types of products, we can motivate the Customer to pay attention and get their interest on particular assortment type, too. This can, and does, change sales structure. In fact the Retailer is sending a message to the Customer, using their authority and product knowledge, on what to buy. This is exactly why product knowledge is extremely important to the Retailer.