A Small Business Retailers Guide to Planograms

Published: | By Natalia Emory

Planograms are essential in retail as they help retailers optimize their store layout and product displays. 

By using planograms, retailers can ensure that their products are displayed in the best way to encourage customers to buy more.

What is a Planogram, and Why is it Important in Retail?

A planogram is a tool used in retail stores to optimize product placement and increase sales. 

A schematic diagram shows how and where specific retail products should be placed on shelves or displays to encourage customer purchases.

Planograms offer a variety of benefits, including increased efficiency, maximized space, and increased revenue.

You use planogramming in merchandising, while a planogram specialist will analyze sales patterns to recommend product facings. 

Planogram compliance ensures proper planogram implementation, while planogram software helps retailers manage inventory and create ideal store layouts.

Moreover, planogram software also helps retailers save time and money by reducing the need for manual labor in product placement and reducing the amount of wasted space. 

Additionally, planograms can help small business owners increase their profits by prioritizing higher-margin items.


A planogram example in a grocery store

Examples of Planograms & the Goals They Help Accomplish

Planograms play a critical role in the retail industry by enabling retailers to optimize their store layout and product displays, enhancing the overall shopping experience, increasing sales, and improving inventory management

  • Macrospace Planograms 

Macrospaces determine the comprehensive store layout by strategically placing departments, aisles, and categories to maximize customer flow and create an immersive shopping environment.

By carefully considering customer behavior and preferences, Macrospace planograms ensure that the store layout facilitates easy navigation and a seamless shopping experience.


An example of a macro space planogram

  • Category Planograms 

These are other essential components of effective retail management. They focus on organizing and displaying products within specific categories, aiding retailers in showcasing their merchandise, introducing new items, and maintaining optimal inventory levels.



These planograms enable retailers to streamline product placement, make it convenient for customers to locate desired items, and aid in effective inventory management practices.

  • Seasonal Planograms 

These have specific designs to promote products related to seasonal events or holidays. 

Retailers utilize these planograms to highlight seasonal merchandise, align their offerings with the current season or event, and create visually appealing displays that capture customers' attention.

With the flexibility to adapt to changing seasons and events, Seasonal Planograms enable retailers to effectively leverage shopping preferences and demands associated with different times of the year.

  • Promotional Planograms 

They are a powerful tool for retailers to promote specific products or brands. These planograms have particular designs to increase sales by strategically showcasing promotions, discounts, and other marketing strategies.

By featuring products in high-visibility areas and leveraging eye-catching displays, Promotional Planograms entice customers to make impulse purchases and engage in cross-selling, thereby driving revenue growth.

Retailers can utilize planograms to improve inventory management practices, ensuring proper stock levels and minimizing overstocking or understocking issues. 

Additionally, planograms streamline store operations, reducing restocking and product organization time and ultimately enhancing operational efficiency and cost-effectiveness.

Moreover, planograms significantly enhance the overall customer experience. By arranging products logically and intuitively, planograms make it easier for customers to find what they want, ultimately improving customer satisfaction and loyalty. 

Additionally, planograms can position complementary products, encouraging cross-selling and increasing the average transaction value.

One of the critical advantages of planograms is their ability to help retailers adapt swiftly to changes in consumer trends and preferences.

By regularly updating planograms to reflect current market conditions, retailers can respond effectively to shifts in customer demand, ensuring their product offerings remain aligned with evolving trends.

This responsiveness to consumer preferences enables retailers to maintain a competitive edge in the market and cater to changing customer expectations.



Advantages of Using Planogram Software

Retailers can simplify their retail planning process by utilizing planogram software. This software uses data related to sales and space to create customized planograms that consider a store's unique layout, sales, and logistics requirements.

The software supports various fixtures and offers visualization tools and performance data to simplify decision-making.

One of the major benefits is the software's paperless approach, which enables the creation of appealing and profitable planograms with minimal manual input. 

Additionally, the software provides updated reports, monitoring, and analytics, allowing for efficient merchandising and optimization of business operations.

With planogram analytics software, retailers can analyze and optimize layouts using indicators such as ABC, available areas, and sales per square foot/meter. It helps save time and labor costs while maximizing sales per unit of space.


In conclusion, planograms play a crucial role in the success of retail stores. It's just one of the many small business productivity tips you can find on the POWR blog.

They provide a strategic approach to product placement, optimize store layouts, increase sales, and improve the overall shopping experience for customers.

Retailers can utilize planograms to ensure that their products are displayed most effectively, enticing customers to purchase and boosting profitability.

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