Definition

Planogram compliance is used to describe the compliance of in-store execution, shelving, or displays with a planogram. A planogram is a diagram that directs how shelvings and store displays should look and how products should be placed. Planogram compliance is term for having displays set up according to the planograms.

 

Improving Planogram Compliance Is a Major Challenge

Brands and Retailers invest a lot of time and money into developing state-of-the-art retail exectution and product placement strategies to make sure their product can stand out, but they often lack the visibility to know if those programs are executed correctly, as planogram compliance can be difficult to measure. According to Cognizant, less than 60% of retailers have a way to measure compliance. Most product categories are less than 50% compliant with planogram.

RIS estimate that lack of compliance and poor retail execution are responsible for $1 to $30 million dollars in lost sales for each retailer in the US. That's about $8 billion in lost sales every year across the industry. In order to improve planogram compliance, retailers, brands, and merchandisers can invest in retail execution software to streamline store execution and verify that everything is executed according to plan. Retail execution software can be used to conduct continuous audits and lift sales by 5% to 10%.

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