To implement a product placement display or a strategic store layout, retail stores must ensure planogram compliance. Compliance entails how closely the final store layout matches the layout the planogram software produces. In general, this is an important goal for retail stores to make sure the investment in planogram software pays off. Here, we’ll provide an explanation of compliance and the best practices for matching the store layout to the planogram. Scorpion Planogram software is a great tool for retail and brick-and-mortar businesses, regardless of your compliance needs.
What Does Planogram Compliance Mean?
As a retailer, your responsibility is to ensure your retail space layout matches the plans for the space. Often, when you have product placement deals with a brand, the brand will either provide a planogram, or you will create the planogram with a software tool. Compliance with these plans means you use the right merchandising, shelving, and displays to create the product setup in the store. Any deviation from the plans makes you not in compliance with the planogram.
Consequences of Non-Compliance
While the occasional mistake happens when implementing a planogram, there are more lasting consequences of not being in planogram compliance.
- Loss of Sales – Planograms help increase sales by using customer data to inform decisions about product placement. If the store layout does not match the planogram, the store risks losing sales. The revenue loss adds up over time, making compliance central to sales.
- Fewer Product Placements Deals – Retail stores who do not use a brand’s product placement design may lose that brand’s business in the future. Brands pay retailers for retail space through slotting fees. Brands can easily withdraw future slotting fees and opt out of using a retail store to display their products if that store has shown non-compliance repeatedly.
- Underutilized Planogram Investment – Retail stores who invest in a planogram software underutilize their investment when they do not follow the planogram.
How to Remain in Compliance
Retail stores need quality planogram software and a diligent inventory system to maintain the right planogram. When you begin to transition the store to the new layout, you should pay attention to the detail of every step. This includes everything from the shelving to the number of products going into a display. Retailers should remember that compliance is ongoing. You need to incorporate regular display checks into your routine to monitor the planogram execution. The best compliance practices stem from good communication within your team to ensure everyone knows their role and expectation with regards to the planogram.
Scorpion Planogram Can Help Maintain Planogram Compliance
Scorpion planogram software is an ideal tool for retailers looking to remain in compliance with their store designs. The software allows you to view the plans in 3D, giving you the perspective of a customer walking through the store. This feature and more are safeguards for compliance. The retailer can review every part of the planogram at any point. Planograms are an important part of a successful retail business, and Scorpion helps you accurately implement your store planograms.