What is the purpose of a planogram in retail?

The purpose of a planogram in retail is to visualize product placement on shelves. This strategic tool helps retailers effectively organize and display products to maximize sales and enhance the shopping experience. By creating a visual representation of where each product should be placed on the shelf, a planogram assists in planning the layout of merchandise, ensuring that products are located in optimal positions for visibility and accessibility. This can lead to increased customer interaction with the products and improved overall sales performance.

Additionally, using a planogram helps maintain consistency across multiple locations, ensuring that customers have a similar shopping experience regardless of where they shop. It can also assist in inventory management, as it often includes information about stock levels and product assortment, making it easier to restock and rotate items as needed.