Maximizing Store Productivity and Customer Engagement through AI-led Retail Planogram

Technology | 2 minutes to read

01st Oct, 2021

Global retail brands are leveraging AI-driven retail planogram software to automate repetitive tasks and optimize their store space. In addition, they are able to fix the product placements, stock visibility issues, and reduce the operational costs.


    • Planogram automation is helping modern-day enterprises to find new efficiencies — They are able to detect issues in store layout and maximize visibility of new and relevant products

    • Laggard retailers without planogram automation are missing out on several business benefits

    • Their conventional processes don’t scale leading to ineffective store layout, wastage of human efforts and increased operational costs

    • Retailers can plug these gaps and create a connected store ecosystem for universal brand appeal and better product placements

    In the age of industry-wide disruptions, retailers are facing bottlenecks to create value for customers. Considering the limited amount of space available in the store, planning for the retail space is fundamental to the success of any retail store. AI-based planogram software for a retail store is essential to address the issues related to on-shelf availability, visibility of new/focused products, packaging variations, multiple shapes and sizes of SKUs.

    The retail industry is in a phase where retailers must implement a store planogram software that goes beyond compliance scores. Store planogram software must be able to detect the issues, pin down the causes, and automate repetitive tasks to optimize the store space for optimum customer engagement. Showcasing the right products relevant to the customers and making them visible are the two prerequisites to facilitate a sale. Planogram automation leverages data analytics in retail to fulfil the aforementioned purpose.

    Battling the challenges of an ineffective planogram, global retail brands, particularly OEM, have implemented an automated store planogram software to boost the visibility of exclusive stores. They have undertaken futuristic measures to streamline their arrangement of retail space and visual merchandising to maximize customer engagement.

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    Store planogram bottlenecks faced by retailers worldwide  

    Enterprises are facing a series of interconnected challenges while planning and managing their retail space. The manual and obsolete process for planogram creation along with haphazard product placement increases the operational cost for the company. It also hampers their customer engagement programs and use up time and resources on repetitive tasks. Even big retail brands are struggling with the following set of challenges in a bid to optimize their retail space for better customer engagement:

    • Manual processes to create and manage retail planogram for exclusive stores
    • Outdated methods like PowerPoint and Excel to create, update, and manage the store planogram layouts
    • Lack of automated systems to manage the repetitive tasks and real-time communication for the stakeholders
    • Absence of retail analytics caused difficulties in product placements and stock visibility
    • Low visibility of new/focused products

    These challenges reduce the overall effectiveness of the store space and paralyze a company’s ability to engage with the customers meaningfully. Planogram arrangement is now an existential need, a crucial element to driving customer interest through relevant product availability and visual merchandising.

    Technology-led planogram implementation and program execution

    To counter the above challenges, modern-day retailers are now using AI-led automation planogram software for the exclusive retail stores. They are deploying measures to fix product placements, stock visibility issues and reconfigure communication for the stakeholders.

    A global OEM surmounted many problems festering in its retail stores. The enterprise deployed a dedicated store planogram software and was able to achieve 100% automation across all verticals and reduced manual efforts by 90%. They also achieved an 80% reduction in operating costs to create and manage the retail planogram. Furthermore, they gained a 4-7% increase in overall sales.

    Read the full success story here

    Using the bandwidth and capabilities of AI-driven technology, retailers are now implementing dynamic planogram strategies that were hard to be imagined few years back. These strategies are transforming their retail space while driving maximum consumer engagement. Both global and local retail brands are now able to create an integrated store ecosystem using AI-led planogram software for visual merchandising and in-store operations. They are able to scale their processes to:

    • Elevate customer experience and maximize ROI
    • Leverage AI-based image processing and computer vision and automate the creation, updation, and templatization of planograms
    • Enable web-based smart planogram for one-click roll out along with a 360-degree view of the store ecosystem
    • Maximize stock visibility, compliance scores, and improved sales
    • Update and manage multiple planograms from one place
    • Real-time tracking and communication of updated planograms with the store managers and promoters

    Also read the blog “Planogram Automation – Why It’s Time to Ditch the Traditional” to unlock more insights about how automation will be key to driving retail success in 2021 and beyond.


    The revealing shift in customer behaviour amidst rising competition in the market has pushed retailers to make full use of their store space. It is crucial that customers find the products of their choice visible and easy to locate within the store. Stores that don’t have a streamlined product placement mechanism lose out on more than half of their potential sales. Hence, the need for AI-driven planograms to automate the process of planogram creation is very important. It is a part of the process to enable virtual retail with contactless solutions. Furthermore, real-time tracking, data collection, and communication with the store managers are also important. Automation is crucial to organize and perform repetitive tasks with ease.

    Download the retail whitepaper “Understanding Challenges & Identifying Opportunities to Enable Breakthrough Solutions for Retail Success in 2021 and Beyond” to gain a deep insight into the current market challenges and the best practices to survive and grow amidst industry-wide disruptions.

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