What is the purpose of a planogram in merchandising?

A planogram is a crucial tool in merchandising that serves the primary purpose of providing an overhead map of layout and merchandise arrangement. By outlining where products should be placed on shelves or displays, planograms help ensure a logical and efficient organization of merchandise that maximizes accessibility and visual appeal to customers. This strategic arrangement is designed based on consumer behavior and sales data, allowing retailers to optimize their space in a way that encourages purchasing.

Planograms are instrumental in maintaining consistency across stores, which is vital for brand recognition and customer experience. They guide staff in replenishing stock and creating attractive displays, making it easier for customers to find items they are looking for, ultimately increasing sales.

While enhancing product visibility and displaying pricing information are important retail functions, these elements are more of a consequence of executing a well-designed planogram. Similarly, although calculating inventory levels is essential in overall inventory management, it does not relate directly to the spatial and visual strategy that a planogram embodies. Hence, the designation of a planogram as an overhead map of layout and merchandise arrangement highlights its core role in effective merchandising strategies.