Ensure space analysis with planogram sales data: While building planograms for a retail store, it is important to analyze sales data frequently to ensure products get the right amount of shelf space.

With planogram, days-of-supply data retailers can properly analyze the total number of inventories required for his store. It is often evaluated against a 7,14,30,60 or 90-day time frame. For example, in a retail store, 100 units of tea are merchandised on a shelf and over the month it has sold 30 units. It makes the retailer estimate that it will take another 80 days to sell the remaining 70 units.

Ensure consistent days- of- supply- for- store: Retail decisions should be taken based on changes in consumer buying habits or market conditions. Days of supply may be understood as the number of days a product is expected to last before it is restocked.

It also includes the total number of facings for each shelf, category of products, number of items, and days-of-supply analysis. So, how does a planogram help to achieve proper inventory management?įilling up the shelves and satisfying customers to get the product that they need is considered a difficult and time-consuming task for the field staff. And that is where planogram is helpful in managing inventory at the right time. Following are the factors a retailer should consider while managing inventory for their store: Stocking of too many items on shelves can lead to slow-moving and this results in difficulty in making space for other new products. Therefore, smart shelf space allocation for each product is important for retail stores and using data-driven planograms, retailers can plan and execute their shelves effectively. A planogram is the visual merchandising software, that ensures store managers control shelf space by communicating to retail field staff about product placement on each shelf.

Meanwhile, poor inventory management can lead the retail business to loss. For instance, a gift shop retailer needs to store items on a seasonal basis.

Inventory management is a critical process for retail businesses, as it allows retailers to have the right products at their store in the right place. Inventory management refers to the process of ordering, storing, tracking and monitoring a store's inventory at different levels. By managing a store’s inventory right, it will help in reducing costs, increasing profitability and improving stores performance.

Retail merchandising planograms