QUESTION #2: How do retail buyers make placement decisions inside a store?

This can be calculated by hand in EXCEL with formulas OR software programs. Each time they re-write the planogram they will seek to remove the lowest sellers and replace it with ones that belong in that category. In all cases retailers regularly change out placement based on seasonality (depending on how large a retailer they are). MERCHANDISING SHELF PLAN: This is a category specific shelf display that illustrates which brands or products will go next to each other. Things that influence placement include the popularity of the product (sales velocity), color, price, weight and size. This helps retailers to illustrate and plan the placement of brands next to each other. This includes isles, categories, shelf placement, end caps, front of store displays.Īlso important to understand is the merchandising shelf plan – which is a front facing view of the shelves and the front facing view of the packaging that will be placed on it. PLANOGRAM: A map of the store that shows exactly where every product in your store should be placed. What determines the placement of a category or product in the store will be discussed further below but in general you design a planogram to help customers follow a natural flow while shopping. In small stores it might be only a group of people who share the planning. In large stores with many categories there are individual retailers assigned to manage a few categories (so one buyer might plan all beverages and snack foods, another would manage the produce only). On a planogram there is an areal layout of aisles assigned to specific categories of food and seasonal displays at the front of the store are are planned out. If you wish for MORE information you can watch this 30 minute webinar on #YOUTUBE (it is one of my MOST popular videos).Ī planogram is simply the pre-planned layout of a store, defining which products will be sold where. How can I change my packaging (artwork or structure) to beat the competitors I’m placed next to?.What can I control or change that will influence where I get placed and my sales?.How do retail buyers make placement decisions inside a store?.What is a planogram and which areas have the highest sales velocity?.

Let’s talk packaging and planogram to get you in control again of a winning strategy for retail! But if you understand why buyers place your product in different locations (FYI packaging is a key determining factor that can shift things for you!) – you can be on the offense and influence your product placement in stores. Many people think retail placement is a passive game – wherever your buyer decides to put you, is where your lot in life is. Where your product is located inside of a store AND on a shelf makes a difference in your retail sales!īelieve it or not – where your product is located inside of a store AND on a shelf makes a difference in your retail sales!

Planogram retail