Digital Merchandising: What Barriers Do Retailers Face at the Start?

Digitizing merchandising processes in physical stores is no longer a trend — it's a necessity for retailers aiming to stay competitive, boost efficiency, and drive sales. Yet, starting this transformation isn't always easy. Digitizing the planogramming process allows retailers to improve display accuracy, speed up store updates, and boost operational efficiency. However, as Antonina Filinska, CEO of Datawiz BI and PlanoHero, notes, retail chains often face several common barriers at the beginning of implementation.

Barriers to Digitizing In-Store Merchandising

1. Lack of Product Data

“Very often, retailers don’t have product images or size data — without this data, it’s hard to start building planograms.”

The best approach is to begin with key product categories and gradually enrich the database with up-to-date photos and dimensions. This helps kick off the process quickly while building a structured catalog in parallel.

PlanoHero planogram software is already integrated with the Listex database, so new clients receive a partially pre-filled product catalog, making the onboarding process much easier. In addition, product images can be downloaded using PlanoHero's built-in Google image search.

2. No Store Layouts or Zoning

“If a company wants more than just drawing planograms — for example, analyzing customer traffic or zone profitability — store layouts are essential,” notes Antonina Filinska, CEO of Datawiz BI and PlanoHero.

Uploading layouts into the system enables a complete view of store space and allows efficient zoning. A store layout in an AutoCAD file or even an image of a plan can serve as a starting point for visualization.

This opens the door to analytics such as identifying hot and cold zones and evaluating category profitability by store location.

3. No Equipment Information

“To create realistic planograms, you need accurate shelf and fixture dimensions — including racks, islands, and displays.”

Creating equipment templates requires at least basic specifications, which can usually be obtained from the supplier. This ensures you're working with an accurate store layout and prevents display errors.

The more precise the data on fixtures, the better the visual representation of the real store environment.

Tip: If you don't have ready-made racking sizes, ask your equipment supplier.

Create a library of equipment for each store format - it will save your teams time.

4. No Merchandising Standards

“There’s often no documentation about how products should be displayed — what goes at eye level, what goes lower, or how to align with the shopper's path. Without established standards, employees rely on intuition, which reduces merchandising effectiveness," notes Antonina Filinska, CEO of Datawiz BI and PlanoHero.

Having basic display standards significantly simplifies the creation of effective and consistent planograms. It minimizes subjectivity across different team members and allows the process to be scaled across all stores. Implementing unified standards helps ensure consistent product placement across the retail chain and improves the presentation of key items. Even if such rules don’t exist yet, they can be built from current practices and refined over time.

Tip: Define how to display top-selling products, how to form product blocks, and which items should be positioned at eye level.

5. Resistance to Change from Staff

“Another common barrier is resistance from the team. People don’t always understand why these changes are necessary,” - comments Antonina Filinska, CEO of Datawiz BI and PlanoHero.

Involving employees early in the process helps them understand and support the new approach. For instance, team members can help collect product data or test features in the new system.

The more the team is engaged, the more successful the implementation will be.

Tip: Conduct a demonstration for the team, showing the benefits - how the planogram helps to avoid confusion, duplication of goods and saves time on product placement.

Conclusion

As we can see, digital merchandising is not just about the software — it’s about preparation, data organization, and teamwork.

“We work to make this transition easier for retailers. That’s why PlanoHero offers built-in integrations, a product database, dedicated support, and a team that has guided many businesses through this journey,” summarizes Antonina Filinska, CEO of Datawiz BI and PlanoHero.

Remember: even a small first step toward digitalization can significantly improve the efficiency of your retail operations.