What is a Planogram and how are they used in retail?

What is a Planogram?

Firstly, a planogram is a visual diagram or layout that is commonly used in retail. Planograms provide guidelines for the organisation of retail products within a store. As a result, they play an important part in visual merchandising and retail space planning. This means, by using a planogram, retailers can optimise their product displays, increase sales and enhance the shopping experience for customers.

Key components of a planogram typically include:

Product Placement: Specifies where each product should be located on store shelves or displays. Details will go as far as shelf levels, height, and position relative to other products.

Product Grouping: Determines which products should be grouped based on categories, brands, or complementary items. This helps create a logical flow within the store and encourages cross-selling.

Facing: Indicates the number of product units or items that should be displayed side by side. This affects product availability and visual impact.

Planogram Dimensions: Measurements and dimensions for store fixtures, shelves, and display units to ensure that the planogram fits the available space.

Visual Guidelines: Includes instructions on how to arrange retail products for an aesthetically pleasing and organised appearance, such as colour coordination or product labelling.

Planograms are essential for retailers as they offer several benefits:

Increased Efficiency: Planograms help streamline the stocking and replenishment processes, reducing the time and effort required to maintain store displays.

Maximised Space: Retailers can make the most of their available store space by optimising product placement and organization.

Improved Customer Satisfaction: Well-organised and visually appealing displays enhance the overall shopping experience and make it easier for customers to find what they’re looking for.

Visual Appeal: Planograms help create eye-catching displays that attract shoppers’ attention and encourage impulse purchases.

Increased Revenue: When products are strategically placed and easily accessible, it can lead to higher sales and increased revenue for the retailer.

So, the creation and effective implementation of diagrams is referred to as planogramming.  This is where analysis of sales data, market trends, and customer behaviour are used to help develop planograms that align with the retailer’s goals.

Planogram compliance refers to ensuring that the planogram is followed accurately in-store. This involves regularly checking and adjusting the product displays to match the planogram’s specifications. By maintaining planogram compliance, retailers can consistently provide a positive shopping experience and optimise their sales performance.

Micro markets by NebrakGrowth in unattended and automated retail

Today, the variety of products offered in vending is vast. This is partly due to the influx of smart fridges and the growth in demand for micro markets. It is also the result of food and beverage brands adapting their products and using vending as a new route to market. Never before has the need for planning and optimising stock been so great or exciting!

Whilst there are numerous free Planogram software templates out there, Canva, and One Door, are just two examples, larger organisations should consider a subscription-based planogram software platform. Paid-for software will provide greater in-depth analysis and support more products. Therefore DotActiv and Quant are more likely to meet the needs of these businesses.

So, it’s clear to see the impact planograms have on retail, and how they can benefit vending and micro markets. Consequently, if operators are to optimise customer experience and revenue potential, they should be using the planogram tool.


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