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. Regardless of your rental expenses, maximizing the use of that space can help you run a lean, cost-effective business. And while the exact costs vary depending on a variety of factors (location, size, lease term, etc.), property management company Hartman says your gross-to-rent percentage could be anywhere between 1% and 13%. For grocers, for example, this could be peanut butter and jelly. 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. Notice how the milk and bread are in the far back corner of the grocery store? That’s because those retailers want to make customers walk past other items, which can help increase impulse purchases. Planograms also allow for strategic product placement from a cross merchandising standpoint.
PLANOGRAM ANALYSIS HOW TO
Learn how to optimize your power wall to spike sales. 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.įURTHER READING: Use your store’s hot spots to strategically sell your products. Place those items together to increase sales of stock that’s 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 planograms for planning out your store layout, and they generally fall under two overarching advantages: maximizing sales and space. For a smaller store with fewer products and displays, the planogram may not be as comprehensive. In the example we just described, you’re likely looking at a detailed planogram. Think about it this way: 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.Īs such, planograms vary depending on the retailer. 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. It is by no means the end-all, be-all solution to your visual merchandising needs. Other terms and abbreviations for a planogram include:Ī planogram is usually a single component to more comprehensive visual merchandising documentation. The information in a planogram is thorough it’ll demonstrate the exact shelf an item is kept. In addition to being a visual representation of your store’s aisles, displays, and point-of-sale, for example, a planogram will show you exactly where specific products are placed. Merriam-Webster defines it as such: “a schematic drawing or plan for displaying merchandise in a store so as to maximize sales.” 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. From determining how to plan the footpath for customers to which product displays go where, it can be a crapshoot if you don’t have a plan in place. After all, you pay for the space, products occupy your space, and customers enter and navigate your space before - ideally - making a purchase.īut planning out how you’ll use your retail space isn’t always easy. Effective use of physical space is fundamental to any brick-and-mortar retailer’s success.
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