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Retail Glossary: Planogram

Retail Glossary: Planogram

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A planogram is a diagram of fixtures and products that illustrates how and where retail products should be displayed, usually on a store shelf in order to increase customer purchases. A planogram is often received before a product reaches a store, and is useful when a retailer wants multiple store displays to have the same look and feel. Often a consumer packaged goods manufacturer will release a new suggested planogram with their new product, to show how it relates to existing products in said category.

Planograms differ significantly by retail sector. Fast-moving consumer goods organizations and supermarkets largely use text and box based planograms that optimise shelf space, inventory turns, and profit margins. Apparel brands and retailers are more focused on presentation and use pictorial planograms that illustrate "the look" and also identify each product.

Since the purpose of a planogram is to communicate how to set the merchandise to increase customer purchases, much research often goes into the layout of a planogram. Attention is given to adjusting the visibility, appearance and presence of products to make them look more desirable, or to ensure sufficient inventory levels on the shelf or display. There are some consulting firms which specilize in retail space layout and planogramming. Some chain stores and wholesalers also create and maintain planograms for their stores.

Planogramming is a skill developed in the fields of merchandising and retail space planning. A person with this skill can be referred to as a planogrammer.

Intactix from JDA is an example of Planogram software.

 

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