Nexgen Marketing posted on July 03, 2024

Shelf planning, also known as planogramming, is a strategic approach used by retailers to optimize the placement of products on shelves to enhance the customer experience, maximize sales, and improve store flow. Effective shelf planning not only attracts customers but also ensures they can easily find and access the products they need, leading to a more satisfying shopping experience. Here is a comprehensive guide on how to use shelf space planning to optimize store flow.

1. Understand your customer journey.

The first step in shelf planning is understanding your customer’s' journey through the store. This involves studying how customers navigate your store, which sections they visit first, and the typical path they follow. By mapping out this journey, you can strategically place high-demand and complementary products in areas where they are most likely to be seen and purchased.

2. Segment your store layout.

Organize your store into distinct sections based on product categories. For instance, group all dairy products together, place snacks in a dedicated aisle, and organize beverages in another. This segmentation helps customers locate products quickly and reduces the time they spend searching, thereby improving the overall shopping experience.

3. Use data-driven insights.

Leverage sales data, customer feedback, and market research to inform your shelf planning decisions. Identify high-margin products or cross-merchandising items and place them at eye level or in high-traffic areas to boost visibility and sales. Similarly, place slower-moving items in less prominent locations. Data-driven insights ensure that your shelf planning is aligned with customer preferences and purchasing behavior.

4. Implement the right planogram software.

Utilize planograms to create and manage your in-store shelf layouts. These tools provide visual representations of your shelves, allowing you to experiment with different arrangements and analyze their potential impact on sales and store flow.

5. Optimize product placement.

Consider the following principles when placing products on shelves:

  • Eye-level is buy-level: Place high-margin and popular items at eye level to catch customers’ attention.
  • Cross-merchandising: Position similar products near each other to encourage additional purchases. For example, place chips near dips and sauces.
  • Seasonal displays: Use end caps and prominent shelf space for seasonal items and promotions to drive impulse purchases.
  • Vertical and horizontal blocking: Group similar products vertically or horizontally to make it easier for customers to find what they are looking for.

6. Ensure consistency and compliance.

Maintain consistency in your shelf layouts across all store locations. This creates a familiar shopping environment for customers and reinforces brand identity. Regularly audit your shelves to ensure compliance with the planogram, checking for proper product placement, adequate stock levels, and correct labeling.

Overview of Nexgen POG

Nexgen POG is a robust and user-friendly cloud-based visual merchandising tool. It is designed for quick and efficient planogramming with minimal effort. Planogram in retail can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planogram on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.

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