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How to Read a Planogram

Let me start by saying that retailers are seeing unprecedented growth rates in their sales.

For 2020, sales grew by 6.7%, and it’s predicted to be around 10% 5% and 13. 5% to reach $4.

Forty-four trillion dollars in medical bills this year. It’s almost like the old days when it was just 4 billion per year before we had to start dealing with all these pandemic outbreaks.

One way that retailers can stay competitive is by maximizing the space in their stores to display merchandise strategically. Customers need to feel that their shopping experience is just as exceptional in-store.

Planograms are crucial to increase sales because they take all the guesswork from merchandising. Click To Tweet

This article will discuss what a planogram is and how it can help you in retail merchandising. We will also find out how to read one and see some of the most common types.

Let’s get started.


All You Need to Know About a Planogram

A planogram is a tool used by retailers to help them optimize their store layout. It allows the retailer to see how they can maximize sales in-store.

Not only does a store map tell you where products are located, but it also shows the layout of your whole store. This is beneficial because the staff knows what’s in stock and how to get from one section to another quickly; they can help customers find their way around.


Having a salesperson in your store can also help to make the experience more pleasant for customers. They know where products are located and can allow you to display them to look appealing on shelves, which will likely increase revenue.

Big-box retailers can use planograms to their advantage, but smaller stores also benefit from them. These large chains need to make sure that they have enough products on hand and consistently display them across different locations.

Knowing how to read a planogram is essential because it can help you figure out your strategy’s lack and where improvements could be made.


How do you read a planogram?

Planograms are the key to a successful store. They show where every product should be, and your staff needs to know how they work so that all of those products can get in their place.

It’s a disaster when your customers can’t find what they want.

If you want to know how exactly planograms work, then read on.


1. Understand the display type

First, you need to get a good understanding of the display type. Common types are coolers, gondolas, and pegboards.

2. Match products with placement on the planogram

Next, you need to ensure that the products are all well-labeled and identifiable. This is one of the most critical steps in implementing a planogram because any mistake will later cause problems.

A planogram is a detailed drawing of the store that you should use to match products with placement.

3. Place products in their proper places

After that, you should decide which products to stock and where. It would help to remember the number of facings suggested in your planogram.

If you don’t comply with your product’s safety standards, it will prevent customers from seeing the benefits of your products and cause you to miss out on potential sales.

But it’s not just about understanding the diagram. You need to be able to read it.

Data is also crucial for your staff to understand why a particular SKU may be selling poorly and how they can improve its placement.

To get the most out of your sales information, you need to make sure it is up-to-date and accurate. For example, knowing when an item was last sold can help determine how long it should be in stock.


What is a planogram example?

Now that we’ve gone over what planograms are and why they matter, let’s look at some examples.

Planograms are commonly used in grocery stores to help maximize the most efficient use of space. This is a planogram for gondola racks found in many different areas like coolers and vending machines.

You can also use this planogram to show how you should display wine in a store.

One way to make your vending machine more eye-catching is by using a planogram. Click To Tweet

You can also use these helpful planograms as a starting point when merchandising your clothing and deciding which items to mix in displays.

This visual represents how you can arrange your beauty products on display in department stores, salons, and other retail locations.


What is the best planogram software for electronic retail?

If you want to design a planogram for your store, there are several different options. You could hire an expert or use one of the many online resources available.

Retailers need to take a few steps to solve this problem. One way would be consulting with companies like Retail Smart or getting help from the experts at Envirosell.

The software can help you out with this one. There are several different solutions, depending on your needs and budget.

The free version of their planogram software is not as advanced, but they offer a paid version if you need something more powerful and would like to pay for it.

Another option is to choose from popular planogram software providers like Nexgen, SmartDraw, Quant, or Shelf Logic. Scorpion Planogram also has a great platform.

If you’re feeling like a creative genius, then, by all means, build your planogram using Google Docs or Adobe Illustrator. You could also use DotActiv’s template or SmartDraw to get the job done.


Planograms are a vital part of retail merchandising. They help you keep your inventory organized, and they give staff members who don’t know where things go an idea about how to find what they’re looking for.

If you don’t have a planogram, your store might run out of inventory, and customers may not even notice. If this happens too often, it can lead to an unpleasant customer experience and lost sales.

Your product contributions will be hidden, and you’ll lose out on valuable data that can affect your sales strategy.

Use the tips mentioned above to create successful planograms and help your staff learn how to read them. This will ensure that you have a better chance of boosting profits, staying competitive in the industry, and making more money.

Now that you know more about the planogram, what are you going to do?