How to create the perfect planogram: tips and recommendations

A planogram in retail is more than just a product placement diagram. It is a strategic tool that shapes how customers perceive your store, how convenient the shopping experience is for them, and ultimately, how your sales grow. A well-designed planogram highlights key products, organises space to simplify shopping, and makes product categories more intuitive for customers.

However, creating the perfect planogram is no easy task. It requires consideration of numerous factors, from analysing sales data and customer behaviour to ensuring the visual appeal of the display. In today’s competitive market, retailers increasingly turn to planograms as a way to strengthen their business position.

In this article, we’ll explore the key principles and steps for creating a planogram that optimises shelf space, reduces costs, and improves customer satisfaction.

Creating the perfect planogram is an art that combines data, logic, and visual appeal. A display should not only be practical but also assist customers in finding the products they need while encouraging additional purchases. Let’s explore the key principles that will help you design an effective planogram.

Every planogram should cater to the needs of the target audience. This means the layout should account for the age, interests, habits, and preferences of shoppers typical for a specific area or store.

• Example: in a supermarket targeting young families with children, kids' yogurts and snacks are placed at a child’s eye level in the dairy section so kids can easily spot them. Products for parents—milk, kefir, and cream—are displayed on higher shelves.
• How to implement: gather data on the age, income, interests, and habits of your customers. Group products into relevant categories (e.g., kids’ items near family products). Optimize shelf placement by utilizing different shelf heights effectively.

Every inch of retail space should generate maximum value. To achieve this, consider the following:

Product size: place bulky items on lower shelves to avoid clutter and ensure convenience. Smaller and premium items should go at eye level.
Store equipment format: make use of all available spaces, including corners, islands, and displays.
Example: in the household goods section, large packs of laundry detergent are placed on lower shelves for easy access. At eye level, compact and more expensive laundry capsules are displayed, while small packs of bleach and fabric softeners are stored on the top shelves.

Products placed in the zone of maximum attention sell faster. This "golden zone" is at eye level and slightly below.

How to attract attention: use bright packaging, lighting, or highlight popular categories with POS materials (e.g., signage or displays).
Example: position new arrivals and popular brands at the center of the shelf, while less in-demand products can be placed toward the edges.

A logical arrangement of products helps customers find what they need quickly and encourages additional purchases.

Categorization: place products of the same category together and group by brand.
Complementary products: position items that complement each other close together to drive cross-sales.
Example: in the cosmetics section, facial creams are grouped by skin type. Nearby, cotton pads and makeup removers are displayed to complete the category.

Store assortments are constantly evolving: new products are introduced, seasonal items appear, promotions are launched, and outdated products are phased out. Flexible planograms allow for quick adjustments without significant time investment.

How to implement: use modern tools such as software platforms for planogram automation. These enable quick edits and instant updates to stores.
Example: in a supermarket, back-to-school items like notebooks, pens, and backpacks are placed near the entrance at the start of the school season. After the season ends, the same space is repurposed for fall items like umbrellas and raincoats, without requiring a complete department overhaul.

Decisions about product placement should be based on facts, not assumptions. Analyze data on sales, inventory turnover, and customer behavior.

Example: in an electronics store, sales data shows that wireless headphones are in high demand. Based on this insight, the popular product is moved to eye level in the entrance zone, with complementary accessories displayed nearby.
How to implement: use BI platforms or CRM systems to collect accurate data on sales performance and demand trends.

Creating the perfect planogram begins with a thorough analysis. This is essential for identifying which products generate the most profit and uncovering hidden growth opportunities.

What to analyze:

Sales data: identify top-performing and underperforming products.
Seasonal trends: understand which products are in demand during different times of the year.
Customer behavior: determine which shelf zones attract the most attention.

After analyzing the data, it’s crucial to consider the physical constraints of the store and its fixtures.

What to consider:

• Shelf size and shape.
• Quantity and dimensions of products.
• Shelf placement relative to customer flow.

This stage involves defining the logic behind the product layout and placement.

Popular products: place them at eye level to maximize visibility.
Complementary categories: position them nearby to encourage additional purchases.
Example: in the beverages section, popular sodas are displayed at eye level, with chips and nuts placed nearby to promote snack purchases.

Aesthetics play a vital role in how a store is perceived. An attractive display not only grabs attention but also enhances customer loyalty.

What to use:

Color accents: highlight brightly packaged products by placing them at the center of the shelf.
Spotlighting new arrivals: use special price tags or dedicated zones for new products.
Lighting: enhance the appeal of premium products or holiday promotions.

After creating a planogram, it’s essential to test its effectiveness and make adjustments as needed.

What to check:

Customer convenience: is it easy for customers to find the products they need?
Sales impact: have the sales figures improved after implementing the new layout?
Brand consistency: does the display align with the brand’s standards?

Creating the perfect planogram requires not just tools and data but also an understanding of key principles. Here are some practical recommendations to help retailers improve product displays and achieve maximum results.

✔️ Regularly analyze sales data
Data forms the foundation of any effective planogram. Without analyzing sales performance, product turnover, and customer preferences, achieving the ideal layout is challenging.

✔️ Engage staff in the planogram process
The success of a planogram depends on how well store staff implement it.
Key steps:

• Train employees on how to work with planograms.
• Provide access to simple and intuitive tools for monitoring displays.
• Establish feedback channels with merchandisers to consider real store conditions.

✔️ Use automation
Modern technologies reduce the time needed to create and update planograms while ensuring accuracy and ease of use.
With automated tools like Greenshelf, updating displays across an entire network takes hours instead of days.

✔️ Consider customer behavior
Product placement should be logical and intuitive for customers.

✔️ Continuously refine planograms
An ideal planogram isn’t a static layout but a tool that must adapt to changes in the market, demand, and assortment. If a display change increases sales by 10% in one store, replicate this approach across other locations.

✔️ Leverage visual elements
Displays should not only meet standards but also attract customer attention. Shelf lighting for premium products, appealing price tags, or small signs with tips can increase sales in the category by approximately 15%.

✔️ Adhere to brand standards
For chain stores, maintaining unified display standards across all locations is essential. This enhances brand recognition and improves the customer experience.

Creating an effective planogram is the foundation of any store's success. A well-organised space helps customers quickly find the products they need, encourages additional purchases, and boosts sales. By applying key principles such as data analysis, shelf space optimisation, and display flexibility, retailers can not only improve store performance but also enhance customer loyalty.

The perfect planogram is a results-driven tool that makes your store both convenient for customers and profitable for your business.

Tilda Publishing