Nexgen Marketing posted on March 23, 2022

In the retail business, planogram is the first form of selling. Before a shopper enters a store, the window displays will sell the product. And once you convince them of your store layout, it will determine whether they need to stay or walk out. That is how important a planogram is. Planograms are the visual merchandising tools, which increase your brand’s visibility with better product planning and placement. If a retailer is interested in maximizing sales and profitability while pleasing its shopper’s, then data-driven planograms are one of the best tools to invest in. So, the following are some reasons why retailers should invest in visual merchandising:

  • Helps to group items logically: While creating planograms for your retail store, consider details of each item within the category. It includes the sales data of each category-wise item and how much it sells every month. This will help you to place each item in the right place with correct facings logically and decide how many items you need to put on each shelf. For example, if you stock small appliances, you could place items in premium, luxury, and economical categories at the end of the aisle. This maximizes your sales for that category and improves profitability.
  • Improves customer satisfaction: By creating logical product flow for categories, shoppers can easily find the items without any fuss. To illustrate, in retail stores, dairy products have multiple facings and deserve that much shelf space due to their high sales and profitability on a monthly basis. To gain the shopper’s attention, placing dairy products like milk, butter, ghee on the prominent spots can help shoppers easily find the item.
  • Improves store and brand image: Planograms can improve customer satisfaction and boost the store image by creating a logical product flow. This makes customers choose your store over others because you provide them with what they need. By using data-driven planograms, retailers can make sections to shop easily. For example, instead of taking 25 minutes to shop for two or three items, you can help reduce the time to 15 minutes.
  • Reduces shelf replenishment costs: A well-built planogram helps to reduce costs associated with shelf replenishment to ensure days of supply for products. For instance, using past retail data helps to create accurate days of supply for products and helps to understand how many days it will take to restock the shelves with products.
  • Help to reduce excess inventory in store shelves: Planogram can help reduce excess inventory in store shelves effectively. It helps to provide less space for low-moving items and more space for the fast-moving items sufficiently. With the planogram, retailers can ensure the right product mix which includes arranging items with proper category management, stocking items of customer needs. This ensures holding the right inventory in your retail stores.
    • Overview of Nexgen POG 

      Nexgen POG is a robust and user-friendly cloud-based visual merchandising tool. It is designed for quick and efficient planogramming with minimal effort. Planograms can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planograms on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.

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