How to Spot and Fix Planogram Errors

It’s no secret that planograms are a fundamental part of a retailer’s toolkit. Their structured and data-driven approach to organizing products leads to improved sales, better inventory management, and when executed properly, an inviting shopping experience that keeps customers coming back. 

Naturally, when retailers seek ways to stay ahead of the competition, they turn to their planograms. That’s because effective product placement and a consistent brand image are essential for gaining the edge they need.

But even the most seasoned managers can make costly mistakes. Here are five of the most common planogram pitfalls:

1. Ignoring Traffic Flow

Imagine customers entering your store. Can they easily access high-demand products as they stroll through the aisles? Are complementary impulse items placed nearby? To be truly effective, a planogram should take customer movement into account. Neglecting to consider how customers travel through your store not only leads to missed sales opportunities but also fails to consider customers’ frustration at finding what they need.

2. Mismanaging Product Placement

Understanding product hierarchy is key to your planogram’s success. Are your best-selling products getting enough shelf space? Ideally, your planogram strategy ensures you allocate the correct shelf space to high-volume products that drive sales. 

By analyzing historical sales figures, you’ll avoid misallocating shelf space that can lead to stockouts of popular items and an overabundance of products that don’t sell well.

3. Irregular Implementation

It doesn’t matter how great your planogram is if your team isn’t implementing it correctly. Clear communication and training, regular audits and adherence checks are the only way to bridge the gap between plan and reality. Even a minor deviation from the plan can disrupt the customer experience and affect sales.

4. Failing to Evolve

In the constantly changing world of retail, customer preferences shift, and competitors are continually bringing new strategies to the table. Are you still clinging to outdated planograms? Staying ahead means regularly reviewing your layouts and incorporating changes based on fresh sales data and market trends. Failure to adapt can lead to missed opportunities and lost sales.

5. Letting Compliance Slide

When was the last time you reviewed the specific display requirements for your manufacturer co-op programs? Planograms that are compliant with these guidelines allow you to unlock valuable promotional resources. Neglecting the compliance requirements can lead to missed opportunities and a wasted budget.

Elevate Your Retail Strategy

When ignored, these planogram pitfalls can significantly impact your bottom line. But they don’t have to.

Once you have created your planogram, test it in your store, make any necessary adjustments and monitor sales data and customer feedback to improve your planogram over time.

You can also let CBMS’s expert merchandising team help you develop data-driven planograms, optimize shelf space allocation, and ensure consistent execution across your stores.

Contact them today for a free consultation and see the transformative power of strategic merchandising!