In today’s retail world, it is difficult to maximize the store’s performance and look for every single detail of efficiency. Since they operate business on a low margin at first, they need to look for better ways to boost their revenue by 5% on average with planograms. Planograms are visual merchandising tools, which allow retailers to analyze the shelf space for an assortment of items and identify how much space they need to place new products on shelves efficiently. In this blog, you can find a handful of reasons – six in total, which is good for your retail business:

• Improves space elasticity demand: The first key reason why visual merchandising is good for retail business is they help with space elasticity demand. Planograms make sure to ensure that the popular and profitable items of your store get maximum shelf space. If you are using Nexgen POG software, you can use the days of supply analysis and retail data to ensure that the right products are available at the right time and in the right quantity.
• Understand customer needs and shopping behavior: Retailers can consider consumer decisions tree to build a planogram to create an enticing shopping experience for the shoppers. More importantly, this allows you to cater to customer demand and trends. For example, a planogram is merchandised according to how shoppers prefer to shop in your store and in which category and all. If you fail to do so, it causes shoppers to find it too difficult to locate items, and this makes shopping frustrating. That is why planogram fits well in this point. Building planograms can ensure that your shelf displays offer the right products to each customer at the right time. If you use the category of cosmetic items, you must categorize it appropriately, and you can divide it into sub-categories or segments. It includes products that fall under hair, skin, face, or other categories to visually appeal shoppers.
• Increase visual appeal of items: It is true that manufacturers put a lot of effort into product packaging, which includes multiple colors, shapes, sizes, and textures. While placing items on retail shelves, it must be visually appealing to the shoppers. With planograms, retailers can improve the store aesthetics and draw shopper’s attention to specific areas to boost store sales effortlessly.
• Help to improve stock control: Not having control on your stock can result in multiple challenges for your retail business. Fortunately, planograms can help in analyzing how long the products have been on the shelf, current number of facings, shelf space shared by each category and more. By looking at the retail data, retailers can identify poor performing items, and this results in relocating such items for cross-selling to avoid replenishment costs.
• Help to boost store sales per square meter: When placing products on a planogram, retailers can increase the number of facings of a given line in aisles based on its sales performance. Meanwhile, you can decrease the low-performing items with new items for better exposure of your stock to boost sales.
• Enhances impulse purchases with cross-selling:Customers may visit your store with the intention of buying pre-determined items off their shopping list. This is where you can place complementary items next to each other to make them end up with unplanned purchases. This results in increased shopping experience and boosts your sales.

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. Planograms can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planograms on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.

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