In that case, you can consider placing it near supplementary products to encourage customers to browse other items you want to up-sell. On the other hand, suppose there’s an item many customers come back to buy frequently. So, it’s easier to plot these routes with a planogram. For example, grocery stores often put milk and bread in the far back corner because they want customers to walk past other items and increase purchase volumes. Retail store planograms allow strategic product placement from a cross-merchandising point of view.
Thus, you may come across many terms for this concept when reading about planogram definition for store management, including: Planogram examples can be as simple as a photo of a preset or be more detailed with numbered dowel holes and shelf notches showing the exact location of each item.
In addition, the planogram maintains your store layout to maximize sales and attract returning customers, improving customer satisfaction.Īs a retail store planogram illustrates the spaces allocated to each SKU, the complexity of the planogram can vary depending on your business size. According to a National Association of Retail Marketing Services report, planogram compliance increases retail profits by 8.1% by avoiding lost sales opportunities due to overstock and stockout situations. Planograms help your employees control inventory more closely and replenish products more accurately. Thus, it minimizes your effort in the most critical task of retail store operations - on-shelf availability (OSA). It utilizes flow diagrams in a store layout by shelves or aisles, and reflects product volume compared to customer demand. A planogram is a detailed drawing of a brick-and-mortar store in an overhead view to show exactly where every product is located.
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