On-Shelf Merchandising Software: Optimize Shelf Space & Boost Sales

Securing and optimizing shelf space is crucial for maximizing product visibility and driving sales. Traditional merchandising strategies alone are no longer enough—on-shelf merchandising software has become an essential tool for retailers and brands. This technology ensures that products are positioned strategically, shelves remain stocked, and retail execution is seamless.

This article explores how on-shelf merchandising software helps retailers and brands secure prime retail shelving, optimize product placement, improve store compliance, and enhance the shopping experience.

What Is On-Shelf Merchandising and Why Does It Matter?

On-shelf merchandising strategically places products on store shelves to increase visibility and sales. Effective merchandising ensures that products are:

• Easily seen and accessible to shoppers.
• Arranged according to planograms for a neat and appealing display.
• Stocked consistently to prevent out-of-stock situations.
• Positioned in high-traffic areas to maximize purchases.

Challenges in On-Shelf Merchandising

Retailers and brands face several challenges in maintaining effective shelf merchandising:

• Limited shelf space – Retailers must balance multiple brands competing for prime locations.
• Retail execution gaps – Planograms are not always followed, leading to misplaced or missing products.
• Inventory issues – Products going out of stock due to poor tracking.
• Changing consumer behavior – Shoppers expect engaging and convenient product displays.

This is where on-shelf merchandising software plays a critical role in solving these challenges and improving retail performance.

How On-Shelf Merchandising Software Helps Retailers & Brands

1. Securing Prime Shelf Space & High-Traffic Areas

High-traffic store areas, such as endcap displays, eye-level shelves, and checkout counters, drive higher sales. Merchandising software helps brands and retailers:

• Analyze sales data to identify the most profitable shelf locations.
• Provide retailers with proof of performance through reports, increasing the chances of getting premium shelf space.

Retailers benefit from optimized product placement that maximizes sales per square meter, while brands gain better visibility and increase customer engagement.

2. Ensuring Planogram Compliance & Shelf Optimization

Planograms dictate how products should be arranged on store shelves, but execution gaps often occur. Merchandising software ensures:

• Photo reports from stores help identify misplaced or missing products.
• Access to planograms from the mobile application helps store managers quickly learn about changes in planograms and assortment and make the necessary adjustments.
• Consistent shelf displays improve the shopping experience and increase sales.

It helps retailers maintain a clean, organized, visually appealing store environment and helps brands display their products correctly.

planogram created in PlanoHero

3. Avoiding Out-of-Stock.

Out-of-stock merchandise on shelves and in stock leads to lost sales and customer dissatisfaction. Merchandising software prevents this by:

• Tracking inventory levels (quantity of remaining stock).
• Swiftly rotating the merchandise in case of changes in the assortment.
• Out-of-stock monitoring.

product rotation functionality in PlanoHero planogram software

The PlanoHero merchandising system allows you to track so-called “product holes” on planograms. These are laid-out goods that are not in stock.

out-of-stock report in PlanoHero merchandising software

It will also monitor the products running out of stock, which will be enough for only 1 day.

running out products report in PlanoHero

Thanks to this functionality, retailers reduce the number of lost sales and increase customer satisfaction, and brands maintain a constant presence on the shelves.

4. Improving Sales Performance

Managing display across an entire store chain is a complex task. PlanoHero planogram software helps:

• Set up an efficient planogramming process in one service: from building a store and equipment plan, creating planograms to controlling their implementation in stores, and analyzing the effectiveness of each SKU's layout.
• Ensure layout consistency across the entire store network by creating and applying layout rules in any chain store.
• Monitor the implementation of planograms in stores with the help of photo reports.
• Evaluate sales results by product, category, and store using the analytics module in PlanoHero service.

layout analysis - analytical report in PlanoHero 

This ensures efficient fulfillment of merchandising tasks, reduces errors, and increases the efficiency of the retail industry as a whole.

Final Thoughts: Why Retailers & Brands Need On-Shelf Merchandising Software

On-shelf merchandising software is no longer optional—it’s essential for maximizing shelf space, preventing stockouts, and improving retail execution. Whether you're a retailer looking to optimize store layouts or a brand aiming to secure prime shelf space, leveraging data-driven technology will ensure better product visibility, increased sales, and an enhanced shopping experience.