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Why do most stores still use traditional planograms?
Many retailers still use traditional planograms simply because it’ s the way things have always been done. Planograms have been a standard tool for decades, and retailers have built processes and trained teams around them, so switching to something new can be a major challenge. In many cases, planograms are shared through Excel, PDFs, and static images, which lack the flexibility to support real-time, store-specific adjustments. While AI-driven planning tools are gaining traction, not every retailer has the resources to implement them just yet. Many still rely on manual merchandising or outdated systems that don’ t support real-time, store-specific adjustments. Also, adopting new technology requires significant investment and training, which some retailers may be hesitant to take on.
Why is it critical for retailers to introduce dynamic planograms that adjust to each store’ s unique inventory and layout?
Dynamic planograms ensure that product placements make sense for each individual store location. They give retailers the flexibility to adapt to real-time inventory, store layouts, and shopper behavior, which ultimately creates a better shopping experience. When the right products are in the right location at the right time, consumers can actually find them- ultimately boosting sales and leaving shoppers with a positive impression of that store. It may seem obvious, but simply having the correct products in stock is one of the hardest parts of managing a brick-and-mortar store.
Retailers may operate hundreds of locations, but each store has unique needs influenced by factors like size, location, and shopper demographics. To maximize sales, right size assortment and allocation, and minimize product waste, it’ s critical that retailers customize their planning to each store’ s specific requirements. For instance, merchandising and inventory management vary significantly between department stores and small-format locations, even under the same brand- so the requirements to properly stock and manage each store are going to be very different. This distinction will be particularly important as more retailers experiment with different store formats and sizes, making dynamic merchandising planning key to ensuring success across all locations.
Dynamic planograms also improve employee experience by making it easier for visual merchandising teams to design effective plans and visual guidelines and channel more creativity into their day-today work rather than being bogged down by menial tasks caused by inefficient and static planograms. They also help store teams seamlessly execute HQ’ s merchandising strategies by providing approved alternatives when certain products are unavailable, ensuring merchandising is always optimized for profitability and sales performance.
How does AI help retailers optimize visual merchandising in ways static planograms can’ t at individual store level?
AI takes visual merchandising to the next level by making planograms smarter, more adaptive, and store specific. Unlike static planograms that follow a fixed template, AIdriven planograms can be created rapidly and at scale, allowing retailers to adjust in real-time based on inventory and capacity levels, store layouts, and local shopper preferences. By continuously analyzing data, AI can generate dynamic, location-specific plans that optimize product placement.
For example, if a product is selling faster in one store location than another, AI can automatically update the planogram to prioritize high-demand items and keep
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