Up in violation of the terms of their placement contracts, by not displaying When R/P alignment falters, retailers may end Merchandisers, who typically manage these costly agreements, use planograms toĬommunicate paid placement to store-level associates. Their stores - such as eye level shelves or areas closest to the front door. Retailers millions of dollars annually for prime product positioning within If the planogram isn’tĮxecuted properly, however, sales of these critical items will be lost andįinally, and perhaps most importantly, R/PĪlignment also fosters valuable CPG-retail partnerships.
Retailers to fill available eye-level shelf space with their most profitableĪnd popular items to maximize sales opportunities. Prioritize R/P alignment, it will develop a larger customer base with better loyalty,Īs others struggle to grow and thrive at a similar rate. Store altogether and shop with a competitor. At best, they will becomeįrustrated as they search for what they need. Hard time quickly finding the items they need. When they are not followed, customers have a Planograms are designed to make it simple for customers First off, ensuring R/PĪlignment drives sales. Retail success? There are a number of reasons.
Why is planogram compliance so critical to To ensure realogram-to-planogram (R/P) alignment, retailers need to invest in advanced technology solutions that help them identify any missteps. A lack of planogram compliance can lead to lost sales, customer frustration, out-of-stocks and excess inventory. However, merchandisers (who own the planograms) often find that their instructions aren’t always executed properly, and that their planograms are mis-executed in the “realograms” - which is a term that describes how a shelf is ultimately set up at the execution level. From optimizing placement heights and facings to pinpointing the proper arrangements for aesthetic appeal, companies leverage planograms that instruct store-level stockers exactly how to set up their shelves and displays for customer satisfaction, vendor terms and conditions, on-shelf availability and more. Companies are constantly trying to master the art of a perfectly organized retail shelf.
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