Store Planogram

Most retailers especially those that are in the supermarket, groceries, hypermarkets, beauty shops, perfumeries, pharmacy, convenience stores, drugstore retail businesses have a blueprint of shelf stock allocation count, phasing or what we commonly call the “planogram”, to determine the appropriate stock required for the product assortments and mix and to ensure the steady replenishment of merchandise in their gondola shelf.

This is a tedious work based on actual shelf size and stacking, a retailer must know how to estimate the size, boxes, how the look of the shelf should be.  It is important for one to have a planogram to know the store requirements for a given stocks(merchandise) to avoid store overflowing of merchandise.

Most retailers these days also use the planogram as basis determined by sales volume, as per category, supplier, and sales contribution.  Oftentimes for big multinational suppliers, who wants to occupy a more dominant store shelf space can offer to pay for the rental of the store shelf in order to have a more visible area in the given store.

This is one way for retailers to maximize shelf space and even earn from those willing to pay for rental of the shelf spaces if they want to have a more highlighted store space.

What is a Planogram?

A planogram is a diagram used by retail chains to determine the merchandise layout of any given store. The overall goal is to provide customers with the best-selling merchandise and to guide the customer through the store in a way that produces the largest sales volume for the retailer.  

A planogram contains a visual schematic as well as a product listing, which is used by a merchandiser to place the products on the shelf.  They are designed to aid the space and shelf management of the store which are updated frequently to keep up with the ever-changing marketplace, product offerings, new products.

Purpose

The planogram provides the merchandiser, with a guide as to how the store should be laid out and the proper space allocation for each section. For example, a grocery store usually contains a series of 4-foot shelving units known as gondolas and may allow 20 feet of shelf space for canned goods, 24 feet for prepared dinners such as canned pasta or 32 feet for condiments. The planogram will also tell the merchandiser where each particular item needs to be placed on the shelf and in what quantity.

Components

Typically, there are three main components to the planogram: the cover page, the schematic and the stock keeping unit (SKU) listing with accompanying Universal Product Codes (UPC). The cover page includes general information and instructions. The schematic shows the overall layout of each section along with the number of shelves needed and the proper shelf heights. The SKU listing and UPC codes tell the merchandiser the correct placement of each item and the proper number of facings, or number of shelf positions, each product is to receive.

Layout Design

It used to be that planograms were drawn by hand with the use of a mechanical pencil, a ruler and graph paper. These days, larger retail chains use computerized space management software to lay out a store set. The program makes use of information such as the size of the product and how fast it typically sells to determine proper shelf positioning.

Retail Implementation

Store sets are usually carried out by a team of professional merchandisers or by store employees. If possible, store resets are conducted while the store is closed, although it is not uncommon to perform them during shopping hours. The merchandisers normally work in teams, with each member possessing a copy of the planogram for the section being set.

Regularly Updated

Planograms are not static. As new products enter the market and old ones are discontinued by the manufacturer, there is a need to update the planograms both at the home office and in the store. The use of an effective space management program can make changes easier to manage for both headquarters personnel and the merchandisers.

In conclusion, I will have to say, in order for a retail store to have an organize shelf space usage and maximize the per square meter gondola space, one must have a dynamic planogram team who can manage, produce shelf lay out as fast as the market products turn in the store.  This can also be a money spinner for MNC's who may want to promote and highlight their new products.