Planograms represent more than just visual merchandising, they are data-driven strategies critical to in-store execution and maximizing revenue. As the retail market is forecasted to surpass $1.3 trillion by 2025, staying competitive hinges on precise product placement and optimizing every inch of shelf space. The strategic use of planograms not only directs consumer behavior, but also drives measurable ROI.

Today’s most innovative CPG companies are moving beyond static layouts, embracing AI-powered solutions that revolutionize the traditional planogram. These advanced tools now integrate machine learning algorithms to dynamically adjust product placement based on real-time sales data, inventory levels, and consumer behavior analytics. The implications are profound: with AI-driven planograms, CPG brands can refine their retail strategy at scale, reducing stockouts, increasing product visibility, and driving up sales conversions.

Imagine leveraging cutting-edge image recognition technology within retail execution to ensure maximum accuracy in shelf compliance within seconds, or automating planogram adjustments that respond to live market shifts. These innovations not only enhance operational efficiency but also enable executives to gain unparalleled insights into shopper preferences, store-level performance, and SKU profitability. Let’s explore the technology driving planograms and the future trends shaping how these innovations are revolutionizing the retail industry.

The Technology Behind Planograms

The effectiveness of planograms is increasingly enhanced by advanced technology. Retailers are now leveraging software solutions that utilize artificial intelligence (AI) and machine learning algorithms to create and manage planograms. These technologies analyze customer data, sales trends, and inventory levels to optimize product placement dynamically.

For instance, tools that incorporate image recognition and analytics can help retailers monitor shelf compliance and ensure that products are displayed as per the planogram guidelines. This level of automation not only saves time but also allows for real-time adjustments based on consumer behavior and preferences.

Future Trends in Planogram Development

As the retail landscape continues to evolve, several trends are shaping the future of planograms to better meet consumer expectations, drive efficiency, and support strategic business goals:

1. Increased Personalization: Retailers are now tailoring planograms based on the preferences of local customers, seasonal trends, and specific demographics. For example, a grocery chain in a health-conscious neighbourhood might prioritize organic and eco-friendly products in prominent locations, while another store in an area with a large young family population might feature budget-friendly, bulk items at eye level. This level of localization helps enhance the customer experience by offering a curated selection that resonates with each store’s primary clientele, ultimately driving up engagement and conversions.
2. AI and Automation: Integrating artificial intelligence (AI) into planogram design allows for dynamic adjustments based on real-time sales data, stock levels, and emerging trends. For instance, if a certain snack brand sees a surge in sales due to a promotional campaign, an AI-powered system could automatically prioritize its placement at eye level, maximizing its exposure and availability. This technology not only helps prevent stockouts by ensuring popular items are accessible but also ensures that planograms can be adjusted seamlessly to capitalize on market shifts without manual intervention.
3. Enhanced Data Analytics: Data analytics will continue to play a vital role in shaping the effectiveness of future planograms. By analyzing shopper behavior, sales performance, and inventory patterns, retailers can gain a deeper understanding of what drives in-store purchases. Advanced analytics also help identify underperforming SKUs, making replacing or repositioning them easier for improved performance.
4. Sustainability Focus: With a heightened emphasis on environmental sustainability, retailers are increasingly focusing on eco-friendly products in their layouts. Planograms may be designed to highlight these sustainable options prominently, reflecting consumer values and encouraging responsible purchasing. Some stores are now creating dedicated “Green Shelves” that showcase products with eco-friendly packaging or sustainable sourcing practices, positioning these products at key points to catch the attention of eco-conscious shoppers and promote a brand’s commitment to sustainability.
5. Integration of Augmented Reality (AR): As AR technology advances, it has the potential to be a powerful tool in planogram design. By using AR, store managers could visualize how new planogram layouts would look in real time before making any physical adjustments. An AR app could overlay virtual products onto physical shelves, allowing managers to experiment with various layouts, adjust product placements, and optimize shelf space without physically moving products. This interactive approach not only saves time and resources but also enables more creative and impactful merchandising strategies.

Ivy Eye Image Recognition: Your Essential Tool for Planogram Compliance

For CPG retailers aiming to optimize planogram effectiveness, Ivy Mobility’s Ivy Eye Image Recognition is an essential solution. This AI-powered tool streamlines the monitoring of shelf compliance, ensuring that products are arranged according to established planograms. By capturing high-quality images of store shelves in real time, Ivy Eye accurately assesses product placement and adherence to planogram specifications.

Some of the other key metrics demonstrating Ivy Eye’s capabilities include:

• High Accuracy: Achieving over 98% accuracy in shelf image analysis.
• Rapid Processing: Completing image evaluations in under 2 minutes per shelf.
• Efficiency Gains: Reducing manual data collection time by up to 70%.

Ivy Eye empowers retailers to ensure planogram compliance, enabling them to track key performance indicators (KPIs) in real-time and make data-driven decisions that enhance in-store performance.

Ready to take your planogram compliance to the next level? Book a demo today to see Ivy Eye in action.