Retail store planograms are drawings, diagrams or photographs that illustrate how retail store shelves and displays, and the product on them, should be organized. The shelf space in retail stores is valuable and anyone one who pays for that space needs to know it is being used to its highest potential and that's where the planogram helps.

In retail, there are many levels of competition. Stores compete between each other and manufacturers compete for shelf space with other manufacturers. A retail store planogram helps both the store and product marketer/manufacturer to display merchandise in a way that makes it more appealing to consumers. Retail stores will also use planograms to keep track of their shelf space to make sure they are maximizing income from every inch of space. Manufacturers use retail store planograms not only to make sure their displays are visually appealing, but also to have their products placed in a logical manner that helps cross-selling and impulse purchases.

For retail stores, planograms can be developed for individual stores to reflect and take advantage of differences in buying habits due to location. Different retail store locations can be used for planogram split testing. Especially during new product introductions, it is sometimes difficult for retail merchandisers to know which shelf layout will produce the highest returns and most customer satisfaction. One planogram can be created for one retail store or region and a somewhat different planogram for another retail store or region. Subsequent analysis of sales will confirm which retail store planogram works better. The retail merchandiser can then choose to go with the retail store planogram that works best or the planograms can be switched if the merchandiser suspects that the differences in sales from one store to the other are due mainly to the differences in location instead of differences in the planograms.

Among other benefits for retail stores, planograms can be used for space and floor planning. Sales per square foot are a key measure of a retail store's performance. Small percentage increases in sales per square foot can translate into large dollar increases at the till. If it's a retail chain, the increase is even more substantial. A retail store planogram will not only make sure that all the available space is being used effectively, but that the store layout and product shelf placement is optimized for converting customers.

Many retail store merchandisers use planograms to set and track sales goals for floor and shelf space. Again, this allows for split testing to determine better performing layouts and customization for different locations.

For product manufacturers, the overall purpose of retail store planograms is the same, to maximize sales, but there are a number of other advantages that improve the bottom line. Inventory management is important in keeping a balance between over-stock and out-of-stock. Retail store specific planograms will improve store and regional supply chain efficiency, which will reduce warehousing costs and lost income due to out-of-stocks. Retail store planograms can also be used to tailor assortments of products to meet local demands. Manufacturers can also use retail store planograms to help guide retailers to display the manfacturer's merchandise how the manufacturer would like it displayed.

For both manufacturers and retail stores, planograms are used to translate merchandising strategies into tactics. Consistent merchandising execution throughout retail stores and across retail chains helps develop and maintain customer loyalty and satisfaction. As much as retail and product mix, the consistent product presentation and supply that retail store planograms help to develop result in increased likelihood of converting customers.

When creating retail store planograms, merchandisers should remember their best practices. Always have a goal for the planogram. Of course increasing sales is a goal, but be specific ? do you want to increase sales by clustering products or do you want to use shelf space better. Retail store planograms should be as accurate as possible. Not every retailer has access to all the latest software and tools, but, even if you draw your planogram by hand, you should use as much detail and be as specific as possible.

Retail store planograms are an indispensible tool for retailers and manufacturers who want to make sure they are maximizing returns in a competitive retail market. Spar Group Inc. will help you get the most from your retail store planograms.