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Blog > What to do with planograms when there are too many of them

What to do with planograms when there are too many of them

    Effective planograms stimulate sales as good as loyalty programs, advertisements and other tools for working with customers. Choosing optimal planograms is crucial to sell successfully.

    Planogram optimization is an important part of the stock management process. It also decreases retailer’s expenses.  Without information on the product facing the automated ordering system can’t calculate the order volume for products accurately. Knowing shelf capacity also helps to calculate the maximum amount of product physically present in the store. This is especially critical for retailers with lack of space or storage.

    Planogram management process is closely connected with product range management. The number of shelves in stores is limited. To determine the acceptable category group depth, category managers have to know the maximum capacity of equipment and store.

    How to know where customer is NOT going

    Example: retailer is introducing a high margin product into the range. Aisles are occupied with planograms of other products. A manager decides to free space for the new product on a shelf by relocating a product category to a different aisle. Despite the well-organized supply chain and investments into advertisements the promotion did not go as well as retailers expected. On top of that, there is a decrease in sales for the relocated product group.

    If managers rely only on category and store sales analysis to change planograms, these problems will be regular. To avoid this, managers need to analyze the efficiency of product placement on shelves. 

    Retano Shelfspace has instruments for all-encompassing analysis of the retail space. With this system retail will be able to identify most profitable shelves for high margin product placement. If a specific category underperforms in sales it can be placed next to high traffic generators, like everyday goods, to increase exposure.

    Every planogram optimization decision must be supported with the analysis of sales and margin in relation to product placement and space. In time retailers will gather best practices of the planogram management which can be applied in just a few clicks for all stores.

    How to decrease planogram creation labor

    [Just leave it to the system]

    Retano Shelfspace creates planograms automatically, employing display rules with all possible product attributes: brand, size, price, etc. 

    Based on these rules the system distributes products on the shelf to meet fixed shares of brands to create planograms with vertical or horizontal brand-blocks. This way retailer’s or brand’s display guidelines of any difficulty can be realized and controlled by the system with minimal labor costs.

    Retano Shelfspace increases the speed of preparation for opening new stores. Planograms are generated with rules imported from stores with similar category layout. The employee only needs to make some local corrections and send the result for approval. It takes a few hours to finish this process even for big stores.

    Automated adjustments of planogram for hundreds and thousands stores

    Large retailers tend to standardize planograms for every format. This way planogram management requires less resources, and also allows customers to find the same products on the same shelves in all stores. The system helps to automatically mix local products into standard range without manually altering planograms in separate stores. This cluster-based approach is remarkably efficient for regular operations. Just a few clicks and the job’s done.

     SPAR manages planograms for more than 500 hypermarkets, supermarkets, and convenience stores with a visual merchandising team of only six people. 

    Retano Shelfspace implementation is almost effortless. Instead of creating a set of planograms for every store manually, the Retano Shelfspace mobile app can take realograms of active stores and upload them into the system to speed up optimization. 

    Planogram control in all stores

    It is hard to track the quality of planograms in every store. Retano Shelfspace portal and mobile app allow employees to view changes in planograms, track tasks and send photo proof of completion.

    With the help of the mobile app employees create realograms of product display by scanning products’ facings so that managers from HQ get actual planograms upon request.

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