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Retail Shelving Optimization - Why Do YOU Need a Strong Planogram Strategy?

Why do you need planograms?

The simple reason; to increase sales, but how is this done?
A planogram's core purpose is to increase sales by determining the optimal placement for each product within the category. This along with having the correct allocation of space for each item will maximize the productivity of the planogram. A planogram is a visual merchandising tool that conveys your merchandising strategy to the customer, it does this by having the right product, in the right store, merchandised on the right shelves where shoppers can easily find it, contributing to the overall shopping experience, which ultimately drives sales growth.
An optimal planogram strategy will identify product performance, optimizing space to sales and allocating the correct shelf space to those high volume sku’s that are driving sales. It is not only imperative to have the product on shelf, but it is highly significant to have the correct amount of space allocated on shelf/in planogram in order to deliver sales growth. When not fully engaged it is ultimately an opportunity lost to a retailer when there are unproductive items occupying space on shelf. Planogram analysis drives a more productive assortment because it helps drive better assortment decisions, once a planogram is in place then the analysis of what worked and what did not becomes much easier to quantify and each subsequent release optimizes the planogram.
A solid and efficient planogram process allows you to make quick and seamless changes to an assortment – whether that means a speed to market innovation or the removal of a discontinued item, these changes can be managed quickly and effectively. A further benefit is the ability to create store clustered planograms. These planograms can be built to take into account differing demographics, shopping habits and purchase cycles. While maintaining the category strategy, the assortment and its placement within a planogram can be modified and adapted based on each of these factors and more. This would allow you to have the best assortment possible for every situation – by removing the "one size fits all" mentality you could create planograms for any number of customer traits depending on the category and area or region being merchandised.
These are but some of the key features that a planogram and planogram process can bring, all working together to drive sales and grow business.

About ANALYTICSMART

The Team at ANALYTICSMART are results driven Senior Space Planners with over 10 years of practical, hands on experience. They bring a solid knowledge base in space planning and visual merchandising along with strong leadership to work quickly to establish partnerships in order to drive results and efficiency.

With experience from various multi-channel retailers our Consultants have a strong ability in creating compelling, functional and profitable planograms across a wide breadth of product lines. The Team have an unparalleled ability to quickly breakdown and understand issues, and create solutions that both maximize sales and optimize space. We have worked with major projects from inception to completion, from planogram launches to entire store realignments.

Our Consultants are Fluent in JDA Space Planning as well as other softwares, not only for creating best in class planograms for individual projects or entire store changeovers, but also in creating standalone and one off fixtures as needed for various projects.

- Gary Bilancia