Increase Sales By Improving Planogram Execution
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Written by Srikant Vasan, StorePerform Technologies
Planograms are the main vehicle for keeping stores fresh and interesting to consumers, which entails getting the right products in front of customers to support corporate branding and promotions. And while this may be well known to anyone in the industry, it's also clear that retailers are failing miserably at executing planograms consistently across their store base - leaving significant sales and profit improvement opportunities on the table.
Why is planogram execution such a challenge? The answer lies in the handoff between corporate headquarters and stores. Communication of corporate programs, including planograms and resets, is typically monthly. This communication involves a massive aggregation of instructions and details for not only every planogram for that month, but also every variation on that planogram (for nonstandard stores), as well as every nonmerchandising program that all the other corporate organizations need to send to stores. For stores on the receiving end of this paper-based spam, making sense of which pieces are relevant to them and in what priority is a painful and time-consuming exercise.