What Is a Planogram and Key Retail Concepts?
A visual layout that defines product placement on shelves.
- Specifies facings per SKU based on seasonal demand (units/week/store).
- Controls adjacency of products to enable cross-merchandising.
- Aligns assortment with seasonal buying patterns.
Other key terms:
- Shelf space optimization: Allocating space based on sales velocity.
- Category management: Grouping related products to improve navigation.
- SKU: Unique product identifier.
- Assortment: Product mix tailored to seasonal demand.
These elements ensure structured and measurable cross-merchandising.
How Does Nexgen POG Enable Seasonal Cross-Merchandising?
Seasonal planogram software uses automation to connect seasonal insights with shelf execution.
Workflow:
- Import seasonal sales data (units/week/store, category trends).
- Identify complementary SKUs based on purchase patterns.
- Apply autofill logic to group related products.
- Allocate shelf space based on combined demand metrics.
- Set placement rules for adjacency and visibility.
- Generate planograms for store-level implementation.
Feature Breakdown:
- Autofill logic: Groups SKUs based on seasonal buying behavior.
- Space allocation: Assigns shelf space based on combined sales performance.
- Placement rules: Ensures related products are placed together for easy access using a planogram.
Where Is Seasonal Cross-Merchandising Applied?
Cross-merchandising is applied across multiple retail categories.
Use Cases:
- Grocery stores group snacks with beverages during holidays.
- Apparel stores pair seasonal outfits with accessories.
- Home stores combine décor items with festive essentials.
Example:
- A retailer groups chips, soft drinks, and dips in one aisle display.
- Snack SKUs receive 50% shelf space, 30% beverages, and 20% dips.
- Eye-level placement is assigned to high-margin products.
What Is the Business Impact of Cross-Merchandising?
- Increase in basket size by 10–25% through bundled purchases.
- Higher sales per display due to product adjacency.
- Improved shopper convenience and faster decision-making.
- Better utilization of shelf space across categories.
Conclusion
Cross-merchandising using seasonal insights combines demand data, product relationships, and structured planograms to drive sales. By using Nexgen POG, retailers can automate product grouping, optimize shelf layouts, and maximize seasonal revenue opportunities.
FAQ
1. What is cross-merchandising in retail?
It involves placing related products together to encourage additional purchases.
2. How do planograms support cross-merchandising?
They define product placement and adjacency based on demand and shopper behavior.
3. What role does seasonal insight play?
It helps identify which products should be grouped based on demand trends.
4. How does autofill help in cross-merchandising?
It automatically groups complementary SKUs using predefined rules.
5. How is shelf space allocated in cross-merchandising?
It is based on combined sales performance of grouped products.
6. How do retailers measure success?
Tracking basket size, sales per display, and conversion rates.
7. Can cross-merchandising be applied across categories?
Yes, it works across groceries, apparel, and other retail segments.
