Optimizing Retail Space for Better Sales and Customer Experience - Planograms

In the current retail store layout planning landscape, the consumer's point of view must be integrated into the store experience to generate sales. The retail space, in all its designs and how it is navigated by the consumer, has a direct influence on customer satisfaction and loyalty, and hence drives sales. This store format at times is laid down according to the convenience of retailers, mainly focusing on business efficiencies and space management rather than providing experience for the shopper, so this poor sales performance may eventually close stores.

In retail, when they design around the needs and behaviors of consumers, they start seeing improvements in the customer experience and loyalty, which subsequently translates into better sales performance. It is a very visual customer journey, from entry into the store to the point of product selection. That's where strategic planning of shelf usage, product placement, and the overall appeal of the store layout are considered. So, consumer psychology is very much part of the design process, and hence it's very important to partner with a service provider that delivers effective and intuitive store layouts and planograms.

Indeed, 70% of the purchase decisions take place at stores, and 38% of unplanned purchases arise from point-of-purchase displays. Brick-and-mortar stores still lead in shopping preference among consumers even as e-commerce accounts for just 14% of all sales. Nearly half of the consumers, 46% still want to shop in person; and 90% claim they are more likely to return to a store based on a positive offline experience. Additionally, 61% of consumers will spend more at a store that gives them a great experience.

In getting shoppers in a store and finally checking them out, the best action one can take is planning with the use of effective applications of key principles of a good planogram. Placement refers to how high up in an adjacent shelf a product ought to sit as determining sales; however there is one great mystery over why consumers buy other factors than placement. How their needs are met product and brand popularity.

- Grouping of products along quality or price range

- Cross-selling opportunities via complementary products

- Eye-tracking to guide attention towards key areas

- Seasonal promotion and product visibility

Planograms are the most valuable tools that retailers may use to optimize their retail space and make smart merchandising decisions. Some of the benefits using planograms include:

Higher success rates in product placement techniques and new launches, with reduced marketing expenses and quicker distribution

- Product and brand performance insights allow retailers to alter strategies to maximize profitability

- Optimal inventory management helps reduce costs and respond to the demand of consumers

- Real-time consumer feedback on packaging, pricing, and promotions

- An attractive and efficient shopping experience increases customer satisfaction and loyalty

- A consistent brand image and marketing message that minimizes customer confusion

Improved return on investment through better space utilization, better product assortment and space allocation, and more significant relationships with partners

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Planogram design strategies are both art and science. For brick-and-mortar retailers, the fight is not only against the direct competition but also against e-commerce players. So, every square foot of space matters. With the growing price of retail real estate, retailers must balance carrying high-end products for higher-income consumers with offering cheaper options for budget-conscious customers. With the ability to guide the consumer to the right product at the right time, retailers will increase sales, improve profitability, and enhance customer engagement. It is a creative, efficient, and data-driven planogram that will make retailing both successful and profitable. Join hands with One Point One Solutions to improve your retail experience.

Optimizing your store layout and planogram design is probably one of the most vital factors that can drive sales while enhancing In-store customer experience. One Point One Solutions delivers intuitive data-driven planogram designs and strategies that will help you make the most out of your retail space. Connect with us today to take your retail experience to the next level and increase your profitability.

Contact us today for a free consultation and find out how we can help you optimize your retail space for success!

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