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Planograms: 12 simple answers to the key questions
Planograms are a topic discussed by everyone involved in retail. Category managers are looking for ways to increase sales, store owners want to use shelf space more effectively, and merchandisers face the daily challenge of how to display products so that the shopper notices them first.
Despite their popularity, planograms are still surrounded by questions. Some see them as a complex tool available only to large chains. Others consider them a formality “for the sake of ticking a box.” In reality, a planogram is not just a display scheme, but a working tool that directly influences sales, shopper convenience, and business efficiency.
In this article, we have gathered 12 of the most common questions about planograms and provided clear, simple answers. This material will be useful both for those who are only beginning to implement planograms and for those already working with them who want to make the process more effective.
A planogram is a visual diagram that shows how products should be arranged on the shelf. It indicates exactly where each item should be placed, how many units should be displayed, and in what order.

What is a planogram and why is it needed?

At first glance, it may seem that a planogram is only about making the display look “nice.” But its role is much broader:
  • for category managers, it is a tool for managing assortment and sales,
  • for merchandisers, it is a clear instruction that removes questions and saves time,
  • for business owners, it is a way to standardise stores across the chain and ensure the same level of service, no matter where the customer shops.
Planograms help solve several tasks at once: distributing space effectively, maintaining shelf order, guiding shopper choices, and ultimately increasing store profit.
Retail sales depend not only on assortment and pricing policy. The way products are presented to the shopper also plays a crucial role. A planogram turns a chaotic display into a controllable tool that directly affects results.

How do planograms help increase sales?

A well-structured layout makes it possible to:
  • Increase product visibility. Shoppers are more likely to choose items placed in the “attention zone” — at eye or hand level. A planogram takes these nuances into account.
  • Reduce out-of-stocks. With a properly planned shelf, products don’t run out unexpectedly — stock is distributed optimally.
  • Boost the average basket size. Complementary products can be placed side by side (for example, coffee and biscuits), encouraging additional purchases.
  • Balance the assortment. A planogram helps prevent bestsellers from getting “lost” among less popular items.
In this way, a well-designed display becomes not just a pretty picture, but a strategic tool for driving sales growth.
Creating a planogram is not a one-off action, but a whole process involving several specialists. Typically, it looks like this:

How is the process of developing and implementing planograms organised?

  • Data collection. Sales by category are analysed, assortment structure is reviewed, seasonality and demand are taken into account.
  • Concept development. Category managers and marketers identify priority products and decide which items should take key positions.
  • Visual scheme creation. Using specialised software, a visual planogram is built — from shelf arrangement to the number of units of each SKU.
  • Testing and approval. The planogram is trialled in practice — sometimes in a single pilot store — and refined based on feedback.
  • Roll-out across the chain. Merchandisers receive instructions and photo samples, while store managers oversee execution.
  • Monitoring and adjustment. Based on sales results and audits, planograms are adjusted — especially during promotions or assortment changes.
This approach makes the process manageable: from analytics to final shelf display. As a result, the shelf stops being “random” and becomes a reflection of business strategy.
Even with a planogram in place, stores often face violations that reduce its effectiveness. The most common mistakes include:

What mistakes are most common in shelf displays?

  • Empty shelves. Poor stock control leads to popular products disappearing from the shelf, sending shoppers to competitors.
  • Failure to follow standards. Merchandisers may adjust displays “their own way,” causing stores within the same chain to differ significantly.
  • Assortment duplication. When too many similar products take up valuable space, the focus on key SKUs is lost.
  • Ignoring the “golden shelf.” If profitable products are placed outside the shopper’s line of sight, their sales decline.
  • Weak regional adaptation. Planograms are copied without considering local preferences, leaving parts of the assortment in low demand.
Each of these mistakes negatively impacts both sales and customer loyalty. The good news is that fixing them is often much easier than it seems: all it takes is proper control and regular updates of display schemes.
The effectiveness of a planogram cannot be judged “at a glance.” Several key indicators are used to measure how much the layout is actually helping the business:

How can you tell if a planogram is effective?

  • Category sales. Growth in turnover or market share indicates that products have become more visible to shoppers.
  • Stock turnover. If products don’t sit unsold and are replenished regularly, it means shelf space is being allocated correctly.
  • Reduced out-of-stocks. A planogram is considered successful if empty spots on the shelf occur less frequently.
  • Shopper conversion. When more visitors become buyers, it’s a clear sign of the planogram directly influencing shopper choice.
  • Average basket size. If additional sales (such as complementary products) grow after planograms are implemented, it is a direct indicator of effectiveness.
In other words, an effective planogram is always reflected in the numbers: it not only establishes order on the shelf but also helps the business achieve tangible results.
At first glance, implementing a planogram may seem as simple as drawing a diagram and sending it to the stores. In practice, however, this is the stage where companies face the greatest difficulties.

What is the hardest part of implementing planograms?

The challenges vary:
  • Staff resistance. Store employees don’t always understand the value of planograms and may arrange products “out of habit.”
  • Lack of data. Without accurate information on sales and stock, it’s difficult to design an effective layout.
  • Different store formats. If stores in the chain vary significantly in size and layout, a universal planogram doesn’t always fit.
  • Lack of control. Even the best scheme loses its value if compliance cannot be verified.
  • Speed of change. Assortment and demand shift quickly, making it hard for companies to keep planograms up to date without automation.
Ultimately, the main challenge lies not in developing the planogram, but in implementing and monitoring it. Companies that succeed are those that build the process systematically: motivating staff, providing regular training, and using digital tools.
Even the most carefully designed planogram will not deliver results if it isn’t followed in practice. That’s why monitoring is a key element of the entire system. Companies use different approaches:

How can compliance with planograms be monitored in stores?

  • Photo reports. The classic method: merchandisers or store staff send photos of the display for verification. This works, but requires a lot of time for processing.
  • In-store audits. Specialists visit stores and compare the actual display with the planogram. Reliable, but costly.
  • Mobile apps for merchandisers. Modern solutions allow shelves to be photographed and instantly compared with the reference scheme.
  • Image recognition. Technology that automatically checks whether the display matches the planogram. This speeds up monitoring and makes it more objective.
The faster a company receives feedback from the sales floor, the easier it is to correct mistakes and maintain consistent standards across the entire chain.
Yes. Today, automation is one of the main trends in shelf management. In the past, planograms were created manually in Excel or graphic editors, but now this task is handled by specialised systems.

Can the creation of planograms be automated?

Automation offers several advantages:
  • Time saving. Software generates layouts faster than a specialist can do manually.
  • Use of sales data. The system analyses statistics and suggests optimal product allocation.
  • Scalability. For chains with hundreds of stores, automation is the only way to ensure a unified standard.
  • Flexibility. Planograms can be quickly updated when assortments change, promotions are launched, or seasonal adjustments are needed.
Modern solutions use algorithms and even elements of artificial intelligence. This makes it possible not only to create planograms automatically but also to predict which changes will deliver the best results.
A planogram is a living tool that requires regular adjustments. It cannot be created once and used “forever.” The frequency of updates depends on several factors:

How often should planograms be updated?

  • Seasonality. For categories with strong seasonal demand (e.g., drinks in summer or Christmas products in winter), planograms are revised several times a year.
  • Promotional activity. Before campaigns and sales events, the layout is adjusted to highlight promotional products.
  • Assortment updates. When new SKUs appear or packaging changes, the planogram needs adaptation.
  • Sales analytics. If data shows that products are underperforming, their placement is corrected.
  • Store format. In chains with different store sizes and layouts, several versions of planograms may be required and updated separately.
On average, companies review planograms once a quarter, but in dynamic categories, adjustments may occur more frequently.
Yes — and it is precisely this integration that makes shelf management truly effective. Without it, planograms remain “static pictures,” but with it, they become a real-time sales management tool.

Can planograms be integrated with ERP and BI systems?

Here’s how it works:
  • From the ERP system, data on stock levels and product movement is pulled. This allows displays to be adjusted based on actual product availability.
  • From BI systems, sales analytics, demand trends, and promotion effectiveness are taken. This means planograms can be adjusted not “intuitively,” but based on facts.
  • Feedback from stores can also feed into analytics, giving managers visibility into how well standards are actually being followed.
The results of integration:
  • automatic adjustment of displays,
  • improved forecasting accuracy,
  • time savings on manual analysis,
  • more transparent collaboration with suppliers.
In essence, linking planograms with ERP and BI makes the shelf “smart”: it adapts to demand and functions as part of the company’s unified digital ecosystem.
Planograms are important not only for the internal operations of a store but also for interaction with suppliers. When there is a clear display scheme, communication becomes transparent and predictable. The benefits include:

How do planograms help in working with suppliers?

  • Formalising agreements. If a brand agrees to placement on the “golden shelf” or to a set number of facings, this is recorded in the planogram.
  • Transparent monitoring. The store can show the supplier that the agreed conditions are indeed being met.
  • Reduced conflicts. Instead of subjective disputes, there is a clear document showing what should be placed where.
  • Joint optimisation. Suppliers can take part in developing planograms and suggest solutions that benefit both parties.
As a result, the planogram becomes not only a tool for managing the shelf but also for negotiations: it helps build fair and long-term partnerships.
The retail market is developing rapidly, and the approach to product display is evolving along with it. Planograms are no longer static diagrams — they are becoming part of smart digital ecosystems. The main future trends include:

What does the future hold for planograms?

  • Artificial intelligence. Algorithms will automatically analyse sales, take into account weather, seasonality, and shopper behaviour, and suggest the most effective layout options.
  • Personalisation. Large chains will be able to adapt shelves to specific regions, store formats, or even the audience of a particular shopping centre.
  • Omnichannel integration. Planograms will be linked with online sales: products that perform strongly in e-commerce will be given more space in physical stores.
  • Mobile tools. For store staff, planogram control will become as simple as possible: photos, automatic compliance checks, and instant feedback.
  • Transparency for brands. Suppliers will gain access to data on how their products are presented on shelves and how this affects sales.
In other words, the future of planograms lies in flexibility, automation, and integration with analytics. This approach will enable retailers to respond faster to change and to offer shoppers exactly what they expect.
Tilda Publishing
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