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What is a Planogram? The Complete Retail Merchandising Guide

A planogram is more than a diagram. It is a tool retailers use to decide where every product sits on a shelf or fixture. Without it, product placement...
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A planogram is more than a diagram. It is a tool retailers use to decide where every product sits on a shelf or fixture. Without it, product placement becomes guesswork, and sales opportunities can be missed. Grocery stores, fashion boutiques, electronics outlets, and hardware chains all rely on planograms to keep displays consistent and effective.

Shelving fixtures such as gondola shelving and retail shelving are common in planogram layouts, but the principles apply across all display types. The aim is always the same — to optimise visibility, encourage purchases, and keep store presentation consistent.

Defining a Planogram

A planogram is a visual representation of how products should be displayed in a store. It can take the form of a diagram, photograph, or digital layout. The document shows exact product locations, facings, and arrangements for each fixture.

Alternate names include:

  • POG (Planogram)
  • Shelf plan
  • Retail schematic
  • Space plan

Retailers use planograms for more than presentation. They also help with inventory control, supplier agreements, and staff training. A planogram can indicate how much space each supplier receives and the expected product mix for each section.

The Role of Planograms in Retail

In retail, the planogram acts as a blueprint for product placement. Its influence extends beyond neat displays. A well-planned layout directs customer flow, promotes higher-margin products, and supports impulse buying strategies.

Key benefits in a retail setting include:

  • Sales improvement – strategic placement increases exposure to high-demand products.
  • Brand consistency – every branch presents the same visual standard.
  • Inventory efficiency – easy tracking of product levels and turnover rates.

A supermarket might use a planogram to place everyday essentials like milk and bread at the back, ensuring customers pass through multiple aisles filled with impulse buys. A fashion retailer may arrange seasonal items in prime spots at eye level to drive sales before trends shift.

What is a Planogram Merchandiser?

A planogram merchandiser is responsible for creating, implementing, and maintaining planograms in-store. They interpret sales data, supplier requirements, and store layouts to produce the most effective product arrangements.

Typical responsibilities include:

  • Designing new planograms for seasonal updates or product launches.
  • Adjusting existing layouts to reflect sales trends.
  • Training store teams on proper display execution.
  • Checking compliance to ensure stores follow the agreed design.

Planogram merchandisers differ from general merchandisers in that their focus is on fixture-level detail rather than broad promotional campaigns. They work closely with buyers, category managers, and visual merchandising teams to align product presentation with commercial goals.

How Planograms Work

Planograms follow a structured process. The exact steps vary, but most retailers use a similar approach:

Step Task Outcome
1 Store layout analysis Identify traffic flow, fixture locations, and prime selling areas.
2 Fixture selection Choose the right display type, such as gondola shelving, wall shelving, or free-standing units.
3 Product categorisation Group items logically, often by brand, product type, or customer need.
4 Space allocation Assign space based on sales data and product turnover rates.
5 Final layout and compliance checks Produce the finished diagram, ready for store teams to implement.

By following a clear sequence, retailers maintain both visual appeal and commercial efficiency.

Types of Planograms

Different retail goals require different planogram formats:

  • Shelf Planograms – detail product placement for each shelf, showing exact facings and item positions.
  • Category Planograms – focus on product groupings, showing how entire categories fit within the store.
  • Vendor-Supplied Planograms – created by suppliers to promote their products in preferred positions.
  • Seasonal or Promotional Planograms – designed for short-term campaigns, often linked to holidays, events, or sales periods.

A single store may use all of these at different times, switching between them as seasons and product ranges change.

Key Elements of an Effective Planogram

An effective planogram covers several technical and visual details:

  • Space and fixture dimensions – accurate measurements prevent display issues.
  • Product facings and positioning – specifies how many units should be visible and their orientation.
  • Brand blocking – grouping similar products together for stronger brand presence.
  • Eye-level and impulse product placement – prime space for high-margin or fast-moving items.
  • Flow and customer navigation – logical placement to guide shoppers through the store.

Retail shelving and gondola shelving can be adapted for all these elements, giving retailers flexibility to test new layouts without replacing entire fixtures.

Benefits of Using Planograms

Planograms give retailers measurable advantages. They provide a clear visual plan, reduce inconsistencies, and help staff maintain display standards without guesswork.

Key benefits include:

  1. Increased sales potential – placing high-demand products in high-visibility spots increases their exposure and purchase rate.
  2. Better space utilisation – every section of shelving serves a purpose, minimising wasted space.
  3. Improved inventory accuracy – consistent product placement helps identify when stock levels are low or misplaced.
  4. Supplier relationship management – suppliers can see exactly where their products are placed and how much space they receive.
  5. Consistent customer experience – regular shoppers find products in the same location across different visits or store branches.

Research from PlanoHero shows that optimised planograms can boost category sales by 12–20%, reduce out-of-stock incidents by up to 30%, and improve execution accuracy by 20–40%. These figures highlight how well-planned product placement translates directly into measurable retail performance.

Even minor adjustments to a planogram can have a direct impact on sales patterns. For example, shifting impulse products closer to checkout points can increase units sold without increasing promotional spend.

Creating a Planogram: Step-by-Step

The process of building an effective planogram involves structured planning. Below is a six-step method many retailers use:

Measure and map fixtures

  • Record exact dimensions of shelving, gondola units, or other display fixtures.
  • Note shelf heights, widths, and any adjustable features.

From our experience, inaccurate fixture measurements are one of the most common causes of planogram errors. Even a small mismatch between documented and actual dimensions can result in products not fitting as planned, leading to last-minute changes or costly rework.

Analyse sales data

  • Identify best-selling items and slow-moving stock.
  • Consider seasonal performance variations.

Group products strategically

  • Group by brand, category, or customer need.
  • Keep related items close together to encourage cross-selling.

Decide placement based on shopper behaviour

  • Put fast-moving or profitable items at eye level.
  • Use lower shelves for bulk items and upper shelves for less-frequently purchased products.

Document visually

  • Create the planogram using software for precision, or draw it manually for smaller store layouts.

Review and refine

  • Test the layout in-store, gather feedback, and make adjustments to improve performance.

Following a consistent process keeps displays functional and commercially effective over time.

Planogram Compliance and Resets

Planogram compliance refers to how closely the actual in-store display matches the planned diagram. High compliance rates mean products are in the correct place, facing the right direction, and arranged according to the plan.

Resets occur when a planogram is updated and the store layout needs to be physically changed. Common triggers for a reset include:

  • New product introductions
  • Seasonal merchandising updates
  • Shifts in sales trends that require space reallocation

Resets can be small, involving a few product adjustments, or large-scale, requiring full aisle rearrangements. Consistent monitoring helps maintain accuracy between the documented plan and the in-store reality.

In practice, planogram compliance can be challenging. One merchandiser on Reddit shared that “It’s impossible. My DSL said to leave holes, but if you leave holes the stores get mad, take your space, or plug their stuff in your area.” This highlights a common issue—tension between the ideal plan and the practical demands of store operations.

Tools and Software for Planogram Creation

Planograms can be created manually or using digital tools. Manual methods work for smaller operations but can be time-consuming for large product ranges.

Popular software solutions include:

  • Blue Yonder
  • DotActiv
  • SmartDraw
  • Shelf Logic

These platforms allow retailers to design, edit, and share planograms with accuracy. Many include drag-and-drop product libraries, compliance tracking features, and integration with sales data. Even simple design tools like Google Slides or basic drawing software can be adapted for basic layouts in smaller stores.

Final Thoughts

Planograms help retailers control how products appear, where they are positioned, and how customers interact with them. They influence store flow, improve sales efficiency, and keep presentation standards consistent.

When combined with quality fixtures such as gondola shelving or retail shelving, they provide a stable framework for long-term merchandising success. Retailers that adopt a structured planogram process are better equipped to adapt to changes in product ranges, seasonal demands, and customer preferences.

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