A new industry position paper, "Achieving Sustainable Compliance: Getting Beyond the Planogram to Maximize Profits," provides insights on the impact accurate product data, efficient planogram versioning and visually intuitive shelf-edge solutions are having on retailers’ merchandising strategies and profitability.
Published by Gladson, a provider of consumer packaged goods (CPG) product images and information, the paper offers insights on the market opportunity for retailers who are able to achieve sustainable compliance.
“Many retailers today don’t have processes in place to track planogram compliance, and those who do are just doing spot-checks or manager sign-offs to validate compliance,” said Greg Gates, vice president of image merchandising solutions at Gladson. “Retailers can recover significant amounts of lost sales by taking a sustainable approach that starts with authorization at headquarters and goes all the way through to execution and ongoing maintenance of the planograms in the store.”
In the paper, four key issues that lead to compliance failures are examined: inaccurate or incomplete dimensional data, poor store mapping, out of stocks including misstocks and face-overs, and budget constraints.
The paper looks at how accurate product data lays the foundation for developing accurate, effective planograms, and also discusses how visually intuitive shelf-edge solutions are helping reduce store-level labor costs associated with shelf setting, resetting and compliance maintenance costs.
“In today’s tough economy, the ability of retailers to take a sustainable compliance approach in managing categories can provide a significant lift in profits,” Gates said. “Gaining an advantage of one week in one category for reset compliance alone could mean more than $70 million in incremental sales for a 200-store chain."
For more information or to download the position paper, click here.
