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Retail Planograms - part2


In the first part of this article, we defined planograms and discussed the necessity and significance of creating and using planograms in retail store management procedure. Here we will consider some other factors in relation to planograms

 Planogram Purpose

Product placement and improved sales are just two very basic reasons a retailer should be implementing planograms in their shops. Planograms provide many other positive benefits as well:

  • Assigned selling potential to every square foot of space
  • Satisfying customers with a better visual appeal
  • Tighter inventory control and reduction of out-of-stocks
  • Easier product replenishment for staff
  • Better related product positioning
  • Effective communication tool for staff-produced displays

Any good retailer realizes the key to increased sales is through proper visual merchandising. A planogram is one of the best merchandising tools for presenting products to the customer. If you are a small retailer, say one store, planograms are a bit harder to pull off. Don't get stuck thinking you need a piece of software to planogram your store. Remember my Excel example. It can be used to create a planogram for a retail store. The key is to follow the principle of planograms not so much the fancy printouts.

Planogram Best Practices

Here are some best practices to follow when using planograms.

Start simple

Too many retailers make the planogram process too complicated and eventually lose steam after a few months. In other words, if it takes a ton of time to create, then your likelihood of doing it every month will grow less and less as time passes. And eventually you will stop. 

Train your employees

Spend time training the employees on how to use a planogram. Your veteran employees especially will think they don't need it. 

Measure your plan

Each month, pull reports on your sales and look at your planogram. For example, we had a table in my stores that was the highest volume generator of the whole store. But one month, we sold hardly anything. It was a sandal display for the season. So made perfect sense. However, the numbers said different. 

Assign your Champions

In your store, you should have champions or leads for each section. This person is in charge of the sales out of that area and this includes the visual merchandising. Allow them to design and plan their part of the planogram as part of the process. When I did this in my stores, not only did it improve the visual merchandising of the store, it also prepared my employees for management 

If you aren't using planograms, it may be time to start. If your retail store is already using planograms, read more on how to effectively implement and maintain a planogram in the Planogram How-To

Compiled in Editorial Board of Retailiran 


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