In retail, planograms can have a significant impact on
a customer’s experience and a company’s bottom line. Effective planograms can
help retailers improve decision making, better understand product trends, and
respond to customer needs. Given the dynamics of the retail environment, one of
the major issues with planograms is compliance. Without planogram compliance,
maximizing the benefits from its use may be difficult to achieve. Often, the
retail environment is dynamic, filled with market nuances, rapid product
rotation, and unforeseen challenges. One of the major challenges with store
level compliance is being able to visualize the store shelves to determine the
state of compliance. Traditionally, retailers have relied on human judgment and
labor to perform the planogram compliance tasks, resulting in lost sales and
out-of-stocks. Although some retailers use limited technology in the process,
there continues to be room for improvement. Recently, there have been technical
advancements, like generative artificial intelligence, that can revolutionize
this process and help to significantly improve planogram compliance. This paper
seeks to provide a thoughtful perspective on the effectiveness of planograms,
the benefits of planogram compliance, and the potential impact that generative
artificial intelligence can have on compliance.
