What is a Retail Planogram?

The fundamental advantage of having a brick-and-mortar store is the physical space. It is essential to make the best use of this space to derive the most out of your business. The area is utilized by shelves, product standees, check-out counters, aisles for customers to navigate your store, etc. 

Planograms are visual merchandising tools that assist retailers in planning their space based on data and research to make wiser retail merchandising choices. Creating an uplifting shopping experience in-store for customers by drafting a detailed store diagram enhances sales. 

A retail planogram visually represents your store’s aisles, product displays, visual merchandising tools, and point-of-sale. Moreover, the exact placement of products is also demonstrated in the planogram. The comprehensive plan is a great visual merchandising solution for maximizing sales in-store.

The design and details of the planogram depend on the size and type of the business or brand. Some use text and box-based planograms to manage inventory and shelf-space efficiently. Mostly, apparel brands use pictorial planograms to get a clear vision of each product’s appearance and brand image. 

A planogram is beneficial for planning the store layout which is an integral part of visual merchandising. 

Benefits of retail planogram:

The primary advantages encompassing the multiple benefits of retail planogram are: Maximize sales and space.

  • Maximize sales

A planogram is used in the visual merchandising planning process to gather data about how the placement of products and displays determines sales. You can map out the exact location for the product on the store diagram and generate actionable insights that will further help form sales strategies. 

Did you know that product placements can impact customer behavior? Generate historical sales data and compare which products sold better and where they were located. Gather such data for slow-moving merchandise at your store. Consider placing these items with best-selling items to increase their sales. 

Based on data and the planogram, identify the highest-converting location and place the products you want to prioritize in that place. Strategically place your products to employ cross-merchandising. Cross merchandising means putting complementary products next to each other to optimize sales. 

Have you noticed how matching shoes and handbags are placed next to a dress at the store? This strategy generates additional revenue for the store. At grocery stores, milk and bread are generally set far back in the corner. The placement is strategically causing customers to move past all the other items to get to the one they need. 

Thus, a planogram helps strategize product placements and maximize profits. 

  • Maximize space

Retail store owners pay for the physical space. Regardless of whether you own the property or rent it, retail space is an expensive deal. Therefore, it’s essential to use the space efficiently and grow your business. Well, utilizing the space wisely will improve customers’ shopping experiences and help in running a successful, cost-effective business.

Using a planogram, a retailer can stay organized by allocating a purpose to every location inside the store. They can manage inventory better. Moreover, such a structured plan can boost staff performance. When each product has a predetermined place, the staff can easily do their job and ensure that every product is in its place at all times. 

While dealing with wholesalers, vendors, or even third party clients- having a guideline to help them understand what and how much space is allocated to them can lead to ownership and accountability in the business. 

  • Creating an effective planogram:

An effective planogram can help retailers in many different ways. Use the philosophies, theories, and strategies behind using a planogram to create one that outlines your store layout and product displays.

  • Hire a planogrammer

If you are looking forward to using a planogram professionally, you can hire a “planogrammer.” A planogrammer is an expert in the retail industry responsible for creating the store layout in relation to customer behavior. While big businesses can invest in hiring a professional for this job, small retail stores can allocate this job to a visual merchandiser.

  • Consult with Planogram experts

Alternatively, you can create an effective planogram by consulting with third-party experts who are skilled enough to design an organized planogram for your business. Some companies specialize in visual merchandising and provide consulting and software options using authorized data collected through behavioral research. 

  • Use the Planogram Software

Based on your needs and budget, you may choose to use planogram software that will help increase sales and use your space efficiently. There are a large number of planogram software available. Among those, you will also find free planogram software that offers essential services. 

  • DIY your Planogram

Take the old-school route! Grab a pencil and draw the store layout on paper. Strategically place the products and displays. You can also use tools in Google docs or Photoshop for better visuals.