Data-driven planogram needs to be reviewed or updated frequently in order to be successful in retail. Planograms help in-store staff in shelf planning, choosing specific products to display on shelves, and even updating the shelf to increase sales.
3. Reasons why you need planogram maintenance in
retail stores.
CONSTANT CHANGES IN YOUR
PRODUCT RANGE
WHEN YOUR RETAIL DATA
DOES NOT STAY THE SAME
4. Constant changes in your product range.
The primary reason why planogram maintenance matters the most is the continuous changes in your
product range.
If you want to remain relevant to your shoppers, you need to provide them with the products they
want.
It includes adding and removing items from your planogram when necessary.
For example, if a product is not performing well on shelves, you should either remove it or reduce its
facings. If there is any gap on the shelf, replace it with other items that will offer you better sales.
5. When your
retail data
does not stay
the same.
Due to the
changes in
shopping behavior
of customers, your
sales data changes
too.
This is due to the
change in season,
or a product has
reached the end of
its lifecycle and is
no longer
available.
As customer
behavior changes,
you need to
update your
planograms and
their layout
accordingly.
Otherwise, it can
turn the items into
dead stock in
dwindling sales
and profit loss.
6. How Often Should You Update Planograms?
The general rule is to review
and update planograms once
every quarter or every six
months.
Updating planograms too
often results in wastage of
time and resources.
Every time you update the
planograms, you flush in new
data to ensure that the items
on your shelf plan are meant
to be there and have the
right space allocation.
If you update monthly, it can
result in skewed data, and it
will give you the wrong
results.
7. Factors that will influence how often you need to
update your shelf plans.
It depends on
the category.
It depends on
the seasonality.
8. It depends on the category.
The first factor that demands updating your planograms is the
change in category itself.
Let’s say, for example, you stock woolen jackets. For this
category, you would probably look to refresh your store aisles
once a year because woolen jackets pick up sales during winter
and drop off during summer.
Refreshing your planograms once or twice a year is a best
practice to boost sales.
Since there are always new lines available, it would be a good
idea to give new products two to five months to perform, and
you can re-evaluate their shelf space later.
9. It depends on the seasonality.
With a seasonal category, you need to update the planograms
throughout the season.
For example, you would not update your winter cream
planogram during the middle of the summer because it would
not make sense.
You also update the planograms during seasonal periods such
as Halloween, Christmas, New Year or Valentine’s Day.
Once the period or event is over, you would remove those
SKUs and give the space to other items for better sales.
For instance, you will remove all the gift cards you displayed
during the New Year once it's over.
10. Use Nexgen POG to effectively plan and
execute retail store shelves to improve sales.
www.nexgenus.com sales@nexgenus.com