How is AI Transforming Planogram Creation: Key Applications and Benefits

Retailers today face the challenge of delivering exceptional customer experiences while maximizing sales in limited spaces. Traditional planogram creation often involves time-consuming manual processes, limiting agility and scalability. Leveraging artificial intelligence (AI) revolutionizes the way planograms are designed, implemented, and optimized to improve the profit margins. Let us explore how AI is reshaping planogram creation, the key applications, and the benefits it offers to retailers.?

Key Applications of AI in Planogram Creation?

• Automated space optimization: AI algorithms can optimize shelf space allocation by considering factors like product dimensions, sales velocity, profitability, and customer reach. This ensures high-performing products receive optimal visibility while maximizing overall shelf space utilization. AI can determine the optimal facing (number of product units displayed) for each product based on its sales performance and customer demand.?

• Automated recommendations: AI can generate automated recommendations for product placement, considering factors like visibility, proximity to complementary products, and customer traffic patterns. This frees up valuable time for retail teams to focus on strategic decision-making.??

• Planogram compliance and shelf monitoring: AI-powered image recognition can analyze store shelves using photos or videos to ensure accurate planogram execution. It can detect deviations from the planogram, such as misplaced products or out-of-stock, and alert store managers in real-time. AI can monitor shelf conditions continuously, identifying issues like product damage, spills, and incorrect facing, allowing for prompt corrective action.?

• Predictive analytics for trend forecasting: AI predicts future trends by analyzing historical data and market signals. Retailers can prepare their planograms for upcoming demand spikes, such as seasonal products or trending items.?

• Multi-store planogram management: For retailers managing multiple locations, AI creates location-specific planograms based on regional preferences and local sales data, enabling personalized and optimized product assortments across different markets.?

The Market's Shifting Sands: Why AI-Driven Planograms Are the Future of Retail Strategy??

The retail landscape is undergoing a seismic shift. E-commerce giants are disrupting traditional brick-and-mortar stores, while consumers demand personalized experiences and seamless omnichannel journeys. To stay competitive, retailers must:?

• Enhance the in-store experience: Create visually appealing and intuitive store layouts that drive impulse purchases and customer engagement.?

• Optimize space utilization: Maximize shelf space and minimize dead zones to improve product visibility and profitability.?

• React swiftly to market changes: Adapt to fluctuating demand, seasonal trends, and competitive pressures with agility.?

• Personalize product recommendations: Tailor product placement to specific customer segments and demographics.?

Available Solutions: Embracing the AI Revolution?

Several AI-powered planogram solutions are available in the market, catering to the diverse needs of retailers. These solutions typically offer:?

• User-friendly interfaces: Intuitive tools that enable easy planogram creation and editing.?

• Data-driven insights: Real-time analytics and visualizations to track performance and identify areas for improvement.?

• Collaboration features: Seamless communication and collaboration among teams.?

• Integration capabilities: Compatibility with existing retail systems and technologies.?

• Image recognition: Analyze product images to identify patterns and trends that can inform planogram design.?

By embracing AI-powered planogram creation, retailers can gain a competitive edge, enhance the customer experience, and drive sustainable growth in an ever-evolving market.?

Benefits of AI-Driven Planograms?

• Increased efficiency: AI drastically reduces the time required to create and update planograms, allowing retailers to focus on strategy rather than manual design.?

• Higher sales and revenue: With optimized product placement and real-time updates, retailers see an increase in sales per square foot. AI ensures shelves are always aligned with customer demand.?

• Enhanced customer experience: Personalized layouts and strategic cross-merchandising create a seamless and enjoyable shopping journey for customers.?

• Better inventory management: AI minimizes stockouts and overstocks by aligning inventory with shelf space and demand forecasts, reducing waste and improving margins.?

• Scalability across locations: AI allows retailers to manage planograms for multiple stores efficiently, scaling solutions to fit different formats and customer bases.?
• Data-driven decision making: AI provides actionable insights, enabling retailers to make informed decisions about merchandising strategies and shelf layouts.?

Overview of Nexgen POG

Nexgen POG is a robust and user-friendly cloud-based visual merchandising tool. It is designed for quick and efficient planogramming with minimal effort. Planograms in retail can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planogram on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.

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