What is a Planogram?

You may have seen suggested merchandising planograms (POGs) from suppliers for how to merchandise specific items. However, a planogram designed for your store is more than this: it is a diagram to assist with merchandising your entire range. Fashion retailers often use pictorial wall plans that demonstrate the overall look but still identify each product individually.

This is what a wall planogram may look like.

When a refit or an initial fit-out is being planned, a floor plan will be drawn up to define areas of the shop and their uses. This may be referred to on an ongoing basis, but is not usually as definite as a wall planogram.

This is a very simple example of a floor planogram

What is the purpose of a planogram?

The most obvious purpose for stores to use planograms is that your shop as a whole is more organised. They are also useful references for staff involved in merchandising and restocking the floor, as well as great for franchisees to ensure they keep to the uniform look of the brand. 
Planograms can help maximize display space while making your products more appealing and accessible to your customers. They are also useful for calculating the most profitable product positioning. By identifying products that have higher margins, planograms are an effective way to position them in the area they are most likely to sell.

Other reasons stores use POGs:

  • Better positioning of related products,
  • A reference for stock control,
  • Working out profitability of store by square metre,
  • To use space efficiently,
  • To direct the flow of customers around the store,
  • To increase visibility of products,
  • To ensure OHS compliance,
  • To balance and improve inventory turnover across the product range.

Who should use a Planogram?

There are no restrictions on what shops can or cannot use a planogram. Department stores and chain stores often incorporate them at the shop fit out stage, but a small boutique can derive just as much benefit from them.
Do you know how profitable your current store layout is? Is there some stock that never seems to shift? Is your shop like a maze? Consider designing a planogram (or series of planograms) to overcome your problems. Put the plan into practise and you may be surprised at the results.

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