Your success as a retailer depends on how well you execute the products on the store shelves. If it goes wrong, your retail business will not perform as it should. Take, for example, your category hierarchy. If you fail to manage the category hierarchy, you will undoubtedly suffer loss. One loss can result in a decrease in sales and losing customers.

What is Category Hierarchy?  

In simple terms, it is a mix of different categories or product groupings of a specific department. It will help retailers to organize the products on store shelves for sale. A retailer can form different sub-categories, segments and sub-segments for better shelf placement. A well-thought-out category hierarchy can help customers choose the products of a certain category. For instance, if a retailer wants his customers to find a product on the store shelf, then the retailer should understand how they shop in the category. Do they expect to find a product on checkout counters or at eye level? Retail product hierarchies can group the products with the help of planogram software. Planogram is a visual merchandising software, that is used for proper product execution on shelves by analyzing the category hierarchy of products and improving retail sales.

How Planograms can Benefit Retailers with Proper Category Hierarchy? 

• It helps with reporting:The first benefit of a strong category hierarchy is that it can help you with accurate reporting. These reports can help retailers make better assortment planning and category decisions. For instance, with the right reports, a retailer can decide what category-wise products should be placed on store shelves to entice customers. Also, it helps to analyze categories into sub-categories, segments and sub-segments for better sales opportunities. The performance of specific product categories can also be analyzed to find any issue related to the purchase decisions of customers with the help of planogram reporting. It also helps prevent placing products in the wrong categories and wrongly positioning products on shelves.
• It can help with retail assortment planning decisions:Accurate reporting can help retailers take the right ranging decisions. For instance, it can help you analyze if the category has too many SKUs or not. It means it can help the retailer to fill the gap between the shelves by placing other products or introducing new items. Customer shopping experience can only improve if the category hierarchy is well-built.
• It provides data to store products effectively:A well-built category hierarchy can provide the correct structure and logical product flow. With this data, the retailer can determine the facings of the products on shelves. Retailers can also understand what products require more space on the shelves and what items require less space. This helps to ensure the right assortment decisions and improves retail sales.
• It satisfies customers’ shopping experience:The right category hierarchy can ensure that shelves are occupied with the right products without any gaps. This makes customers think that you have enough stock to meet their needs. That is why category hierarchy has a direct impact on customer’s shopping experience and makes them satisfied.

Overview of Nexgen POG 

Nexgen POG is a cloud-based, powerful category management software for visual merchandising. It provides the retailer with a detailed assortment optimized planogram for better shelf planning. Planogram also helps to identify consumer insights with planogram report analysis and retail data. It comes with an array of features, including customizable templates, bulk upload images, easy compliance, report generation and much more. It’s interface is extremely user-friendly, and planograms can be designed by easily dragging and dropping the products. Nexgen POG is a cost-efficient planogramming tool, designed for creating store-specific planograms.

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