What are Planograms?
Planograms are a visual representation of your floor plan which shows you where specific products will be placed. A planogram should include these three things:
- An accurate drawing of the layout of your retail space
- All retail furniture and store fixtures
- Written or drawn information about what actual products are where
Why create Planograms?
Placement of your merchandise is important because it helps you maximize sales and minimize wasted space. The way you merchandise your products will directly correlate to the success of your stores’ sales. Planograms will also save you time, help with restocking, and reveal successes and flaws in your merchandising techniques.
Planograms help you to create a layout strategy which allows you to plan which fixtures, props, and merchandise you are placing where to make sure you are making the most of your stock.It makes planning and implementation so much easier for you and your staff.
In the end, you will have a clear visual overview of your entire retail space and it will allow you to see that everything will fit as it should before you move everything into place.
If you have multiple stores you will want a planogram to make sure that all your stores are merchandised the same to create a more seamless shopping experience for your customers. Using the same planogram will bring familiarity and consistency so your customer will know where to find their favorite items and also allow them to know what to expect when they enter your store. This will also help strengthen your brand by creating a cohesive brand appearance.
It will also be helpful to your store staff to reference this when restocking merchandise and ensure that if customers move products your staff will know how to organize the space again at the end of the day. Usually, the most helpful way to do this is through a binder with pictures of each area of the store to make it simple for them to visually proof that everything is as it should be.
How will Planograms lead to profitability?
- Planograms will allow you to create and monitor different types of shelf strategies
- Tracking success, as well as failures, will help with future sales
- Categorising the products wisely will promote up selling, such as when using cross-selling techniques
When tracking success and failures it is important to analyze your store sales while referencing your planogram to see the impact of product placement. Move your best sellers or items which are important for you to sell, to places where sales for other items have been doing extremely well (high traffic areas).
Make sure to keep each of your planograms as well as pictures for each layout change with its according to sales breakdown to allow you to track what works and what does not. This will be the biggest key to profits once you know what works for your space.
How to create a Planogram?
You can easily create a planogram yourself by using any kind of tool that allows you to make lines, shapes and insert text (such as powerpoint) or you can draw it by hand.