Today, I’m writing about the shop floor and how we achieve “everything in its place”. Simple answer, follow the planogram. We say this every day, but why? You can take these in whatever order you like, but Retail is about making sales and high profitability… and this is really why eXPD8 exists. This blog from my colleague Debbie says it all.
Welcome to the new world
“A place for everything, everything in its place” stated Benjamin Franklin, one of the Founding Fathers and the 6th President of the United States. He was an amazing man: writer, politician, civil activist, scientist and inventor amongst many other things, widely credited with bringing the disparate colonies together to become greater than the sum of their parts and defining the society, the new world, the America the colonies aspired to become. One can only imagine how he would view modern politics. One thing Franklin never was, was a retailer… but his words speak volumes in our retail world: in production, storage, transport, logistics or even simply on the shop floor.
Follow the planogram!
Retail space is there to make money, it costs money to use/own/service, so using it in a rational, organised way is critical to positive sales and profitability. Like packing hand luggage on Ryan Air… make the best use of the space you have.
In my BAFTA winning Channel 8 recently, I used a “cheesy (not “cheesy”) acronym. SAVE. The V was for “visible”. It could just have easily been “visual”. Planograms typically put the best-selling products in the customers’ eyeline. If a product isn’t immediately visible, stats suggest 7% of shoppers leave the store empty handed. They’re also designed to appeal to the eye: a colour, form, and proportion that creates visual appeal. Humans tend to like things they like the look of… shallow but true.
A retail environment is designed to make the customer feel comfortable in familiar surroundings. Next time you shop, smell the bakery, is there music, is it bright and light? Warm? Ok, not so easy in the chilled aisle! Layout is also designed for your comfort, to make you happy to shop. The way products are positioned, relative to their surroundings is key to this, key to brand identification. You never see Dec and Ant; it’s always Ant and Dec, always in a suit … and always on ITV. Easy to find, easy to identify and always on brand. Setting up to planogram is part of this whole scheme too.
Finally, efficient and tidy product placement allows retailers to control inventory, replenish stock and reduce out of stocks/wastage. If there’s a place for everything, but the “thing” is elsewhere… how can you keep track of it? It’s like leaving your car keys in your coat pocket, not in the key pot… disaster!
So, our obsession with following the planogram is born from science and good retail sense, created by industry experts such as Retail Smart, and it’s also what the clients pay us to do. When you order a double cheese burger and they hand you a quarter pounder…yes, it’s still meat in a bun and stuff… but you want it changed, because its not what you wanted or paid for… and you know it was just as easy for them to get it right first time!
Client Services Controller