The Power of Planograms in Shelf Arrangements and Stock Precision
Recall your most recent trip to a grocery store, as we all find ourselves in such retail environments. Now consider this question: What factors are crucial to visitors in a grocery store? After all, a contented customer is a loyal one, which translates to consistent revenue for the retail business. When patrons enter supermarkets, they seek convenient shelf arrangements, precise stock availability, and properly filled displays. To accomplish these objectives and more, retail establishments rely on planograms.
What is a Planogram in Retail?
A shelf planogram is a schematic representation of how products should be positioned on shelves, accompanied by accurate inventory information.
Planograms aid store employees and merchandisers in quickly identifying the appropriate placement for each product on the shelf. Furthermore, they provide details on the quantities of each item.
In addition to product assortment data, planograms visually represent commercial equipment characteristics, such as shelf width, depth, height, and the number of shelves. This information assists in planning shelf restocking activities and implementing automated ordering systems. Some advanced programs even offer three-dimensional planogram views.
Relevance and Benefits of Planograms
Planograms serve the needs of both retailers and suppliers. The sooner retailers adopt planograms, the more effectively they can manage their product assortments. By leveraging up-to-date and historical data, retailers can make informed decisions on category development, assess category effectiveness, execute successful promotional campaigns, and account for the interests of buyers, suppliers, and manufacturers. Atriny Group offers innovative solutions to integrate and enhance the effectiveness of planograms seamlessly.
Planograms prove beneficial for small neighborhood chains as well as large supermarkets and hypermarkets. Among our clients who have already embraced planograms: Novus, ATB and Tavria V.
Advantages of Planogram Implementation:
- Swift dissemination of accurate product location information from the central office to individual stores.
- Optimized product displays, minimizing the frequency of shelf restocking and reducing labor requirements.
- Accurate assortment lists for efficient in-store ordering processes.
- Allocation of product assortments based on real-time shelf space data.
- Enhanced sales through strategic product placement (e.g., brand adjacency, prime shelf positioning, etc.).
- Dynamic sales analytics enabling trend tracking based on real-world data, facilitating informed decision-making.
Planogram Creation and Software Usage
Planograms can be created by merchandisers at either the retailer’s or manufacturer’s headquarters. These specialists utilize merchandising principles and purchasing decision trees to determine the optimal placement for each product. The number of facings is determined based on sales data and desired shelf inventory levels.
Various software tools, including specialized applications and Excel, can be employed to generate planograms. However, dedicated software solutions for category management offer distinct advantages:
- Centralized data sources that integrate information from the accounting system, encompassing categories, assortment details, sales data, prices, and purchasing decision trees.
- Streamlined communication channels between different company departments, such as commerce, merchandising, and store operations.
- User-friendly interfaces and quick access to functionalities, facilitating seamless planogram creation.
Customizable and flexible reporting capabilities.
Ability to upload data back into the system, such as precise shelf location details for creating shelf labels and inventory management. Solutions like SymphonyAI, implemented by Consulting for Retail (Atriny Group), offer such features. For more details, connect with us to explore how SymphonyAI can be tailored to meet your specific reporting and inventory management needs.
Planogram Execution at Stores
Planograms can be implemented either by store staff or outsourced merchandisers, including supplier representatives. Merchandisers often perform additional tasks alongside shelf organization, such as monitoring product expiration dates, affixing price tags and point-of-sale materials, overseeing warehouse inventory (if applicable), providing photo reports, and assisting customers with product availability and location inquiries. Atriny Group’s expertise in price optimization seamlessly complements these efforts, ensuring an integrated approach to retail efficiency.