According to Shopkick, up to 82% of purchasing decisions are made in-store. Therefore, effective management of the product display on the shelves is crucial. The traditional approach to creating and implementing planograms can be time and resource consuming and lead to inaccuracies and inefficient organization. But with today's advanced capabilities, professionals can enjoy the benefits of automated retail store planogram management. In this article, we'll take a look at how to choose the right system and what its main features should be.
Why do you need an automated retail store planogram system?
Implementation of a full-cycle solution allows retailers to cope with the main operational challenges. In particular, the following aspects:
- systematization of information about stores and equipment. This allows you to effectively plan and adapt planograms for different outlets, taking into account their specific features;
- automation and acceleration of planogram creation. This helps to reduce the time and effort involved in creating a layout based on a decision-making tree and taking into account company standards;
- convenience of providing information about the display for stores. Simple and clear visualization, the ability to make changes quickly and control the results. When using the mobile application, there is no need to print planograms: all the necessary information is available in the app;
- control of the display on the sales floor. This makes it possible to quickly identify and correct errors, ensuring that the retail space meets the specified standards;
- easy adaptation and scaling of planograms for stores with different formats;
- planogram analytics: return per meter and facings, compliance of the layout with the agreements with manufacturers.
Ultimately, the merchandising management system increases sales by optimizing the organization of displays (the sales share is equal to the shelf space).
What is essential to consider when choosing a retail store planogram system?
The global market of merchandising management systems could grow to $5.7 billion by 2028. This proves their relevance and demand among manufacturers and retailers. Therefore, choosing the right digital solution can determine the success of your business. What should you consider when looking at system options from different developers? Let's consider the main factors.
- Easy integration into the company's digital infrastructure.
When choosing a merchandising management system, it is important to make sure that it can easily and seamlessly integrate with existing systems in your company. For example, the program should be able to receive data from the accounting system and provide information for other systems (inventory management, assortment management, or analytical modules). It is also crucial to establish data exchange with the accounting system to accurately reflect actual sales and financial data. - Scalability.
Consider the size of your company and your planned growth prospects. The chosen system should be flexible and easily scalable to meet the growing needs of your business. It should allow specialists to adapt to an increase in the number of stores, retail outlets, or product categories without losing productivity and efficiency. - Support and training.
Before choosing a system, research what types of support and training the vendor provides. This may include technical support, training, online resources, specialized documentation, or materials created by the user community. Make sure that you have access to the necessary resources to successfully implement and effectively use the system. Merchandisers should have access to tools that help them quickly learn the principles of operation and use the system to its full potential. - Data security.
24% of cyberattacks target retailers, more than any other industry. Pay attention to the security measures the system uses to protect your confidential information and customer data. It should have mechanisms for data encryption, backup and recovery of information, as well as restricting access to sensitive data to authorized users only. - Functionality.
Make sure that the system has all the necessary features for your business. It should help you create planograms, analyze sales, optimize shelf placement, and perform other tasks that meet your unique needs. It is important to understand what functions are prioritized for your business and whether the chosen system can meet them.
In addition to these aspects, we recommend that you conduct a detailed analysis of the cost of implementation and support, as well as analyze feedback on the system from other users and industry experts.
Functional features of a retail store planogram system: which ones are mandatory?
There are several key functionalities that make an automated planogram an indispensable and effective tool for retailers. Let's take a look at some of them.
Planogram digitization and automation
Thanks to the management system, creating planograms becomes a simple and fast process. The product catalog is easy to integrate, and the system itself allows you to work with all types of equipment present in the sales area. This allows the specialist to focus on solving less routine tasks: for example, forming a layout according to the chain's standards and fulfilling other requirements of the commercial department.
Auto-facing of planograms
Auto-facing is a function that allows you to automatically and in real time set the optimal number of products for each row of the shelf in order to balance the arrangement of goods, avoid overstocking of passive items and ensure efficient use of space. For example, the algorithms of the LEAFIO Shelf Efficiency automated system analyze sales data, turnover and other factors to recommend the optimal shelf configuration.
Automatic filling of planograms
In LEAFIO Shelf Efficiency, this function allows you to automatically fill the planogram according to the rules set by a specialist. For example, you can set the shelf to be filled to a certain percentage based on specific product characteristics (type, size, category, brand, price range, and other parameters). This allows you to effectively customize the placement of goods in accordance with your strategies and customer demand.
Working with formats
A format planogram is designed for a specific group or cluster of stores. This function allows you to make changes to one planogram that are automatically reflected in all stores assigned to it. In LEAFIO Shelf Efficiency, this feature allows you to quickly organize assortment rotation, product replacement and other changes in all stores at the same time, saving time and effort.
Analytics
Creating planograms without proper analytics can be unprofitable. Therefore, the store planogram system provides analytical reports and tools to assess the impact on business performance. You can get information about sales, product placement efficiency, and shelf returns and make strategic decisions based on this data.
For example, LEAFIO Shelf Efficiency allows you to generate various reports, such as recommendations for facing changes, like-for-like, layout structure, assortment, stock, layout efficiency, etc. You can also analyze the selected planogram separately and work with visual and tabular analytics of changes in the floor plan.
Control over the layout
Using the LEAFIO Shelf Efficiency mobile app, sales staff can quickly see and implement changes to the display. With the help of notifications and a task control system, they can receive updated planograms and make adjustments to the product placement directly on the shelves. This makes it possible to maintain the relevance and accuracy of the layout, ensuring the proper presentation of goods.
Related: A new level of merchandise planning: from BI to category management automation
On the other hand, head office employees have convenient access to up-to-date photo reports of the shelf made by the mobile application. They can monitor the implementation of the planograms and make necessary adjustments according to the actual conditions in the stores.
Thanks to the mobile application, the head office can promptly notify sales staff about changes in the planograms. For comparison, in chains that do not use LEAFIO Shelf Efficiency and similar tools, weeks or even months can pass between the creation of planograms and their delivery to stores.
Cloud-based solution
The LEAFIO Shelf Efficiency retail store planogram solution is based on cloud technology. It does not require additional hardware and infrastructure in the office or stores. The system is hosted on remote online servers, which provides convenient access and updates.
In addition, the system developers pay great attention to privacy. All data related to planograms and layout is stored in secure cloud environments, which guarantees the protection of your business and customer information.
Thanks to these functionalities, an automated retail store planogram system contributes to the effective placement of goods on the shelves, optimizing sales and ensuring the success of your business. It allows you to focus on strategic tasks and improving the customer experience instead of wasting time on routine processes of creating and updating planograms.
