Creating a planogram starts with measuring your fixtures, gathering sales data, and then mapping out where every product sits on each shelf. Whether you sketch it on paper, build it in a spreadsheet, or use dedicated software, the process follows the same core logic: use your space strategically so the right products get the right visibility. Here’s how to do it from start to finish.
What a Planogram Actually Shows
A planogram is a diagram of a retail fixture, usually a shelving unit, that specifies exactly which products go where. Each item is represented by an image or colored box, labeled with its product name and SKU number. The diagram includes the physical dimensions of the fixture (height, width, and depth of each shelf section) so you can confirm everything actually fits.
Planograms also show “facings,” which is how many units of a product appear side by side on the shelf. If a cereal box image appears three times in a row, that means three facings. The number of facings a product gets reflects its sales importance and how often it needs restocking. More facings means more visual presence and fewer stockouts.
Gather Your Data First
Before you touch a drawing tool, you need the numbers that will drive your placement decisions. Pull sales data from your point-of-sale system covering at least the last 90 days. You’re looking for a few key metrics per product:
- Sales velocity: How many units sell per week. This tells you which products deserve more shelf space and more facings.
- Profit margin: A product might sell slowly but carry a high margin, making it worth a prime shelf position.
- Cross-purchase patterns: Products frequently bought together should be placed near each other. If customers regularly buy salsa with tortilla chips, those items belong in close proximity.
- Inventory turnover: Fast-turning products need enough shelf depth to avoid constant restocking, while slow movers can get by with fewer units.
If you have a customer loyalty program, that data is especially useful for spotting which products your core shoppers gravitate toward. Even without loyalty data, your POS reports will give you enough to make informed decisions.
Measure Your Fixtures
Grab a tape measure and record the exact dimensions of every shelving unit, gondola, endcap, or display you plan to include. Write down the total width of each section, the height between shelves (noting whether shelves are adjustable), and the usable depth from front to back. Don’t estimate. Products that don’t physically fit on the shelf will derail your plan immediately.
While you’re measuring, note any constraints: power outlets that block product placement, sight lines from the store entrance, columns or structural elements that limit visibility, and the height range that falls at eye level for your typical customer. Eye level is where you’ll place your most important products, so knowing exactly where that zone falls on your specific fixtures matters.
Apply Product Placement Principles
Shelf placement isn’t random. Decades of retail research show consistent patterns in how shoppers see and reach for products, and your planogram should take advantage of them.
The “golden zone” is eye level, roughly the third and fourth shelves from the floor on a standard gondola. Products placed at eye level can see 20 to 30 percent higher sales compared to identical products on lower shelves. This is where your high-margin or premium products belong. Shoppers also tend to look and reach toward the right side of shelves first, so placing key items there gives them a slight edge.
Group products into logical categories. When related items sit together, shoppers make decisions faster and buy more. Complementary products placed nearby, like snacks next to beverages, encourage add-on purchases without feeling pushy. Impulse items perform best near checkout areas or on endcaps, where shoppers are already in a buying mindset and price comparison cues act as visual anchors.
One classic retail strategy: place everyday essentials deeper in the store so shoppers walk past additional categories on their way in. Your planogram for those back-of-store shelves can be more utilitarian, while the high-traffic areas near the entrance and checkout deserve your most carefully optimized layouts.
Build the Planogram
Now you bring together your data, measurements, and placement logic into a visual layout. The approach depends on your scale and budget.
Spreadsheet or Drawing Method
If you’re a small retailer with a handful of fixtures, a spreadsheet or simple drawing tool works fine. Create a grid where each cell represents a facing slot on the shelf. Label columns for width positions and rows for shelf levels. Fill in product names, SKUs, and the number of facings. This approach forces you to think critically about every product’s placement, which is valuable even if it’s slower than software.
You can also sketch planograms by hand on graph paper, using one square per facing. The point is accuracy, not aesthetics. As long as your team can read it and set the shelf correctly, the format works.
Dedicated Planogram Software
For larger operations or anyone managing multiple store locations, planogram software saves significant time. These tools let you build digital shelves to exact dimensions, drag and drop product images, and automatically calculate how many units fit. Many integrate with your inventory and sales data to suggest optimal facings based on actual performance.
Options range widely. Cloud-based tools like DotActiv and Quant handle planogram creation alongside broader category management features like assortment planning and analytics. PlanogramBuilder and Klee 3D focus on visual merchandising with 3D shelf renderings. Enterprise-level platforms from Blue Yonder, Oracle, and SymphonyAI tie planogram design into supply chain and floor planning for large retail chains. Nielsen’s Assortment and Space Optimization tool is built specifically around maximizing shelf ROI using consumer data.
For most independent retailers, a mid-tier cloud tool or even a well-organized spreadsheet is more than enough. The software becomes essential when you’re managing dozens of stores with localized assortments.
Assign Products to Positions
With your blank fixture template ready, start placing products using a systematic approach:
- Top shelves: Lighter, smaller items or products with strong brand recognition that shoppers will look for regardless of position.
- Eye-level shelves: Your highest-margin products, new launches you want to promote, and best sellers that benefit from maximum visibility.
- Lower shelves: Heavier or bulkier items (easier for shoppers to lift from below), value brands, and bulk sizes.
- Endcaps: Seasonal promotions, new arrivals, or high-margin impulse items.
Allocate facings proportionally to sales velocity. A product that sells 100 units per week deserves more facings than one selling 10. But don’t follow the data blindly. A new product you’re testing might warrant extra facings temporarily to build the “exposure effect,” where shoppers increasingly prefer products they see more often.
Check your work against the physical measurements. Confirm that the total width of products assigned to each shelf doesn’t exceed the shelf width, and that product heights don’t exceed the gap between shelves. This is the step where many first-time planogram builders run into trouble, so double-check the math.
Test, Implement, and Revise
Set the shelves according to your planogram and track sales for two to four weeks before making changes. Compare sales by product and by shelf position against your baseline data. Did the products you moved to eye level actually perform better? Did the cross-merchandised items generate more add-on purchases?
Planograms aren’t permanent documents. Seasonal shifts, new product arrivals, and changing customer preferences all require updates. Many retailers revise their planograms quarterly, while fast-moving categories like snacks or beauty products may need monthly adjustments. Each revision should be driven by fresh sales data, not guesswork.
When rolling out a planogram across multiple locations, provide printed or digital copies with clear product images and SKU numbers. SKUs are the most reliable way to identify products, since packaging can look similar across brands. Include shelf-by-shelf photos of the correct setup if possible, especially for staff who are setting shelves for the first time.
Keep Your Planograms Working
The biggest gap in planogram management isn’t the design. It’s compliance. A perfectly optimized layout means nothing if store staff don’t maintain it. Schedule regular shelf audits, even if that just means walking the floor with a printed planogram and checking that products are in the right spots. Some retailers use image recognition tools like Planorama to photograph shelves and automatically compare them against the planogram, but a clipboard and a sharp eye work too.
Track your results over time and you’ll start to notice patterns specific to your store: which shelf positions consistently outperform, which product groupings drive the most cross-purchases, and how much of a sales lift you get from moving a product up one shelf. Those insights become the foundation for every planogram you build going forward.