Are you tired of losing sales to poorly stocked shelves?
It’s a problem every store has. Items placed in the wrong spot. Shelving that doesn’t “flow” logically. Customers leaving empty-handed instead of buying more.
…the list goes on.
Here’s the hard truth…
Retailers lose an estimated $1.75 trillion worldwide each year because items are out of stock. Yikes.
The solution?
Planogram software can help retailers design better shelf layouts that actually sell. Planogramming has come a long way in recent years, and remains one of the best ways to optimize retail inventory.
What you’ll learn:
- What Is Planogram Software?
- Why Planogramming Matters To Retailers
- Top Advantages Of Planogram Software
- How To Choose The Best Software Solution
What Is Planogram Software?
Planogram software allows retailers to plan out their ideal shelf placement before implementing it in stores.
It’s like a blueprint for your retail space. You visualize exactly where each product will sit on shelves. Including height, facing direction, and count.
Retailers interested in planogram software can use these tools to design mockups based on their sales data. Software will identify top-selling products and recommend ideal placement on shelves.
Cool, huh?
Don’t mistake modern planogram software as basic shelf design tools. Many software solutions tie into your back-end inventory management system. They analyze sales data and automatically adjust product recommendations over time.
The global market for planogram software is $1.5 billion in 2024 and is growing each year.
Why Planogramming Matters To Retailers
Out-of-stock shelves lose you sales. Sloppy shelf layouts confuse your customers. Bad product placement hides bestsellers behind slow movers.
Here’s the issue:
The majority of retailers manually plan their shelves. A single employee walks through the store, eyeballs what they see, and plans where items should go.
Manual shelf planning doesn’t cut it anymore.
Retailers are expected to provide their customers with fast, intuitive shopping experiences. That includes stocking shelves with popular items where they can easily be found. 91% of shoppers won’t visit a store again after experiencing poor customer service like an out-of-stock.
Retail shrink costs the industry over $112 billion annually, with poor inventory management being one of the leading causes.
Planogram software can help your store:
- Increase shelf efficiency
- Minimize lost sales due to out-of-stocks
- Create smoother, more intuitive shopping experiences
- Drive additional sales with smarter product placement
Top Advantages Of Planogram Software
Making the switch to retail planogram software has its advantages. See what retailers are gaining from using a software solution.
Boost Sales With Strategic Product Placement
You might be surprised just how much product placement can affect your sales.
Front shelf traffic sells better than back. Eye-level shelves move more than the highest and lowest ones. Placing complementary goods next to each other can encourage upsells.
Software takes the guesswork out of these decisions. Planograms are created based on actual sales numbers and trends.
Reduce Waste Due To Overstocking
Tying up too much capital in slow-moving inventory is bad. Running out of your hottest sellers is just as worse.
Luckily…
Planogram software utilizes your store’s sales data to determine how quickly items sell. Programmes identify which products are hot and which aren’t moving at all.
By stocking products that sell, you’ll reduce waste and increase profits.
Save Time Managing In-Store Operations
Mapping out planograms by hand is a time-consuming task. So is updating them when new products arrive.
Planogram software makes it easy to plan new products layouts in minutes. Update all store layouts at once with just a few clicks.
Store managers have more time to focus on customers rather than updating shelf layouts.
Maintain Consistent Layouts Across Multiple Stores
If you have more than one store, you know consistency is key.
You may discover planograms that work great in one location…but they get ignored in another.
Software allows you to create “template” planograms for all locations to execute. Corporate designs the planogram, and individual stores easily put the plan into action.
What does this mean?
Customers know what to expect at any location. Training new staff becomes easier. Brand presentation looks the same in every market. Compliance checks can be performed quickly.
How To Choose The Best Software Solution
When it comes to picking the right software for your business, you should shop around.
You’ll find tons of different tools with features that fit every industry. But here are some aspects you should consider…
User-Friendly Interface
You’ll never use software that your employees don’t understand. The best planogram tools come with drag-and-drop features.
Planogram software with visual editors are great for non-techies. Employees create professional layouts in minutes.
Integrates With Other Retail Software
Price is important, but you get what you pay for. Most inexpensive software products don’t connect to other systems.
Planograms are most useful when tied into backend reporting. Tie your software into point-of-sale systems, and watch the insights roll in.
Features Scalability For Business Growth
So you find the perfect software that works well with your 5 stores. What happens when you expand to 50?
Upgrade pains can be avoided if you select a software that scales with your business. Cloud-based software will run seamlessly on most devices. Don’t get locked into software that can only run on your business computer.
Analytics and performance reporting
The right planogram software will provide insight into what’s working and what isn’t.
Pull sales reports by shelf location. Is traffic really slower on lower shelves? Use that data to make smarter business decisions moving forward.
Wrapping It All Up
Planogram software takes the guesswork out of retail inventory management. Replacing dreaded manual shelf planning with easy to use software.
Who knows? With the amount of time you save, you may even enjoy planning your store shelves.
There’s no doubting the value that well-designed planograms bring to retailers.
- Increased sales from better product placement
- Reduced waste from overbuying items that won’t sell
- Time saved managing day-to-day retail operations
- Effortless consistency across every store location
Take shelf organization seriously. Your bottom line will thank you for it.
Retailers who don’t optimize their shelves are leaving money on the table. Businesses who understand the value of proper planogramming are hitting their numbers… and then some.
Planogram software is only getting smarter with new innovations. Artificial intelligence and machine learning are making solutions more intuitive than ever before. Expect to see automation take manual tasks away from employees.
The moral of the story?
Smart product placement isn’t just a nice thing to have. If you want to stay competitive in today’s retail environment, it’s required.
Luckily for you, there are tools that make it possible for retailers of all sizes. Start small if you need to. Try a software program at one location, and scale from there.
Shelf organization won’t happen on its own. But the right software will make it as painless as possible.
