With planograms, retailers can determine where to display their products for maximum sales. Strategically arranged products on the shelves helps retailers to sell their products, offering a better shopping experience for customers. In the past only big retails were willing to implement planograms in their store. But now small retailers have also turned to planogramming.

Planogramming helps to increase sales. But it’s not just about increasing sales - there are also other reasons why small retailers are turning to planograms.

1. Out of stocks

Retail out of stocks happens because of the inconsistent shelf replenishment practices. This is one of the major challenges that retailers face which results in poor product performance. Since it gives consumers the impression that the store is unorganised and insufficient for their needs there are chances that they may be even prompted to go to a competitor.

Planograms give small retailers an opportunity to avoid out of stocks because of its data-driven visual representation of how a product will be displayed and how long it last on the shelf before getting it restocked. This can help in making the product replenishment rate optimised leading to more revenue and better customer satisfaction.

2. Product performance rate

Planograms are essential to determine if the shelf space performance. Shelf space performance data is vital since it gives retailers the data that they need to compete. But small retailers who don’t make use of a planogram have no way of figuring out how their shelf spaces perform. Planograms helps small retailers understand whether or not to allocate more or less space to a particular product according its performance analysis.

3. Unorganised stores:

Nobody wish to enter a cluttered store, do you? Like out of stocks, a messy store also adds to the customer’s negative experience. This is true, unlike the size of the store. Retailers are now using planograms to provide a neat and positive experience to their customers.

Retailers can group and merchandise products according to the category, sub-category or segment, shelf by shelf with the required facing, which helps to place their products in a shopper-friendly manner. This leads to satisfied customers and visually appealing stores.

4. Excess inventory

Excess inventory occurs when a retailer has too much of stock and can’t get rid of them by selling. The most common cause of this situation arises when the buying method is decentralized, where individual stores have total control of their buying process, which is far from what is regarded ideal. Excess inventory can often make a considerable amount of loss, getting the capital held up in the stock, which acts miserable on a small-scale retailer. Through the use of planograms, small retailers are able to have one central control point where buying and shelf planning decisions are made, which maximise their revenue.

To compete effectively in the retail space, small retailers need to embrace shelf space planning techniques that will place them front and centre. One such tactic is to make use of planogram software. While it’s for all retailers no matter your size, planogram can be effective for you if you’re a small retailer since it would be comparatively easy to implement planogram in your store.