In the retail business, planogram is the first form of selling. Before a shopper enters a store, the window displays will sell the product. And once you convince them of your store layout, it will determine whether they need to stay or walk out. That is how important a planogram is. Planograms are the visual merchandising tools, which increase your brand’s visibility with better product planning and placement.
2. Why Planogram is Important for Retail Sales?
It increase a store’s brand’s
visibility with better product
planning and placement.
If a retailer is interested in
maximizing sales and
profitability while pleasing its
shopper’s, then data-
driven planograms are one of
the best tools to invest in.
3. Reasons Why Retailers Should Invest in Planogram Software
HELPS TO GROUP
ITEMS LOGICALLY
IMPROVES CUSTOMER
SATISFACTION
IMPROVES STORE AND
BRAND IMAGE
REDUCES SHELF
REPLENISHMENT
COSTS
HELP TO REDUCE
EXCESS INVENTORY IN
STORE SHELVES
4. Helps to group items logically
While creating planograms for your retail store, consider details of each item within the category.
It includes the sales data of each category-wise item and how much it sells every month.
This will help you to place each item in the right place with correct facings logically and decide how many
items you need to put on each shelf.
For example, if you stock small appliances, you could place items in premium, luxury, and economical
categories at the end of the aisle. This maximizes your sales for that category and improves profitability.
5. Improves customer satisfaction
By creating logical product flow for categories, shoppers can easily find
the items without any fuss.
To illustrate, in retail stores, dairy products have multiple facings and
deserve that much shelf space due to their high sales and profitability on
a monthly basis.
To gain the shopper’s attention, placing dairy products like milk, butter,
ghee on the prominent spots can help shoppers easily find the item.
6. Improves store and brand image
Planograms can improve
customer satisfaction and
boost the store image by
creating a logical product
flow.
01
This makes customers
choose your store over
others because you provide
them with what they need.
02
By using data-driven
planograms, retailers can
make sections to shop
easily. For example, instead
of taking 25 minutes to shop
for two or three items, you
can help reduce the time to
15 minutes.
03
7. Reduces shelf replenishment costs
For instance, using past retail data helps to create accurate days
of supply for products and helps to understand how many days it
will take to restock the shelves with products.
A well-built planogram helps to reduce costs associated with
shelf replenishment to ensure days of supply for products.
8. Help to reduce excess inventory in store shelves
It helps to reduce excess inventory in store shelves effectively.
Helps to provide less space for low-moving items and more space for the fast-
moving items sufficiently.
Retailers can ensure the right product mix which includes arranging items with
proper category management, stocking items of customer needs. This ensures
holding the right inventory in your retail stores.
9. Use Nexgen POG to effectively plan and
execute retail store shelves to improve sales.
www.nexgenus.com sales@nexgenus.com