Palmer Retail Solutions Blog

Here's How to Create the Perfect Planogram

Posted by Kathy Heil on Feb 5, 2016 2:40:04 PM

AdobeStock_92453970.jpegIn our last article, we talked about planograms – what they are and why they’re such an important tool for retailers. Now it’s time to look at how to create the perfect planogram for your store.

Planograms are a roadmap for you. They show how and where products are displayed on shelves, racks, and hanging units throughout store. Sometimes, manufacturers provide their own plans to influence how retailers display their products.

Done right, planograms turn into an invitation to buy for shoppers. Beyond a logical arrangement of merchandise – placing similar items together – they can:

  • Draw customers to newly-arrived or very profitable items
  • Improve cross-selling opportunities
  • Prompt impulse purchases

Creating your planogram is as simple as 1-2-3.

1. Measure the fixtures to be included in the planogram:

  • Depth and width of each shelf or rack section
  • Number of shelves or racks
  • Spacing between shelves or racks, or space needed for hanging items

Then measure the packaging of each product or the dimensions of soft goods as they will be folded or hung. Together, these measurements will tell you how much product you can put in your display. Or, conversely, they will help you choose and arrange fixtures to accommodate the amount of merchandise you want to display.

2. Decide exactly where to put each item. You should consider factors such as:

  • Brand
  • Visual appeal
  • Season
  • Inventory availability
  • Popularity
  • Price

3. Draw your planogram.

Make it as basic or fancy as you want. Larger retailers typically use specialized software for this (and small store owners can, too). A growing number of retailers are now using 3D planograms to visualize and create in-store set-ups that speak to total customer experience.

Whatever the format you choose, someone else will be using the planogram to stock and maintain displays. Make sure to include enough information so they can do that easily and consistently. Otherwise all your work will be for naught. For example, you could include a legend showing exactly which merchandise is depicted. You can also create a broader view planogram that shows how displays should be placed relative to one another

 Try these placement tips.

  • The perfect planogram depends on your type of store and merchandise. For instance, a grocer might create a planogram specifically for quick-moving impulse items at the checkout register. A high-end clothing store would create a very different planogram that encourage browsing and interaction with displays.
  • If your customers are adults, eye-level is the best position for most popular or profitable products. If you’re appealing to children, put items down low where kids can see and pick them up.
  • One trend in commodity retailing is placing oversize versions of products together, rather than with matching regular-size items. Why? Those big packages combine to produce a bold, eye-catching visual.
  • Need some ideas? Check out these department-by-department examples of home store planograms.

Once your planogram is in play, study your sales data alongside the plan, to ensure best-sellers are getting top billing and weaker performers aren’t taking up the most valuable space.

Download our  Retail Endcaps eBook

Palmer Retail Solutions strives to offer our clients the absolute best combination of innovation, quality, service, and value for our diversified custom store fixtures and merchandising displays. For more information about our designs, retail fixtures, cash wraps, kiosks, or point of purchase displays, visit our website at: http://www.palmerretailsolutions.com. 

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