MERCHANDISING PLANOGRAM AREAS - Learning Lounge

MERCHANDISING PLANOGRAM AREAS | JOB AID

MERCHANDISING PLANOGRAM AREAS 101

Introduction

Planogram areas are planned sections of the store for the display of products, signage, and experiences.
Multiple tools are used in setting and maintaining these areas including Store Maps, Planograms, Visual
Merchandising Standards, Weekly Merchandising Instructions, and Functionality Guides. These tools allow
the area to be set to the desired customer experience.

• Store Maps show where planograms are located within the store.
• Planograms are visual renderings that include product layout and fixture placement information. A

planogram exists for every mapped planogram location on the store layout map.
• Weekly Merchandising Instructions provide details of new signage, fixtures, vendor provided parts,

and security parts.
• Visual Merchandising Standards provide additional information regarding the merchandising

strategy, signage, fixtures, vendor provided parts, and security parts.
• Functionality Guides provide instruction on how to handle the unique functionality of these areas.

They provide our customers a well-organized shopping experience, by ensuring there is a consistent
appearance from store to store, allowing customers to quickly find the products they wish to purchase.

We are going to focus on the following topics:
• Planogram Set Process
• Displays for Magnolia Home Theater Only
• Placement of new SKUs
• Reading a planogram
• Planogram file system

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MERCHANDISING PLANOGRAM AREAS 101

Planogram Set Process

Planogram areas change and must be reset periodically. There are seven main steps in setting a
planogram area:

1. Review Weekly Planograms Wiki* for planograms scheduled for implementation and set
responsibility (Project Team, Operations (Inv/Merch), or 3PL)

2. Use Store Map to locate planograms location

3. Print copies of scheduled planograms and supporting documents (Visual Merchandising Standards,
Weekly Merchandising Instructions)

4. Set fixtures and products per planogram

5. Set new signage, fixtures, vendor provided parts, and security parts per Weekly Merchandising
Instructions.

6. Review Visual Merchandising Standard and Functionality Guides for additional implementation and
maintenance information

7. Planogram Completion and Final Verification

NOTE: Currently, Operations is allocated 7 hours weekly on average (this will vary by week;
and stores should review their LVR for specific allocation by week) to set time-sensitive
planograms that need to be completed as part of the Ad Set / New Release process.

Step 1: Review Weekly Planogram Workload
Review Weekly Planogram Workload for planograms scheduled for implementation and to determine
planogram set responsibility. This list is sortable by team responsible for setting (Project Team, Store, or 3rd
Party). Not all planograms listed on this document are applicable in every store. Use either Notifications or
the planogram to determine if applicable for a particular store.

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MERCHANDISING PLANOGRAM AREAS 101

Step 2: Locate Planogram on Store Map
The Space Management website is the primary repository for store maps and planograms. Access store
maps from this website by clicking View Maps/Floorplans. This provides visibility and print capabilities for
store maps with the ability to zoom, move, and enlarge specific areas.

Planograms are denoted on store maps by an abbreviation of the planogram title. The abbreviation list on
the map page can be used to determine the appropriate abbreviation. The View Maps/Floorplans page
also includes a How to Read a Map/Floorplan guide for further information about reading a map.

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MERCHANDISING PLANOGRAM AREAS 101

Step 3: Obtaining hard copies of scheduled planograms and supporting documents
Planograms should be printed according to who sets. Store set planograms should be printed by
Operations team during the Sunday ad set and placed in the To Be Set file. Project Team member should
print their weekly assigned planograms during the first visit for that current week and place these in the To
Be Set file. Follow the following steps to print the planograms and supporting documents:

Printing a Planogram
To print the upcoming planograms using the Print Planograms by Merch Kit Date function, perform the
following:

1. Access the Space Management website via the Merchandising home page of Employee Toolkit
(ETK) > All Department Widget > Select Merchandising > Run the Business > Planograms.

2. Click Print Planograms by Merch Kit Date.

3. From the Store drop-down list box, select the store location.

4. From the Merch Kit Date drop-down list box, select the upcoming week.

5. Click Get List.

6. Click Add All.

7. Remove any planograms that are not a part of the Weekly Planogram Workload.

8. Click Print Planograms.

9. Place all printed planograms in the Planograms to Set File. Note: Locate the Planograms to Set
File at the Merch Desk near the Sign System.

To print an individual store-specific planogram, perform the following:
1. Access Planograms on the Space Management website.

2. From the Category drop-down list box, select the required planogram area.

3. From the Title drop-down list box, select the required title.

4. From the Sub Title list box, select the required planogram.

5. To print, click the printer icon.

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MERCHANDISING PLANOGRAM AREAS 101

Printing Planogram Checklist
The planogram checklist is a working document to record notes associated with setting the planogram. To
print a blank copy of the planogram checklist, perform the following:

1. Access the Space Management website via the Merchandising home page of Employee Toolkit
(ETK) > All Department Widget > Select Merchandising > Run the Business > Planograms.

2. Click the Planogram Checklist (Retail) link on the left menu.
3. To print, click the printer icon.

Printing Weekly Merchandising Instructions
To locate and print Weekly Merchandising Instructions, perform the following:

1. From Employee Toolkit (ETK) > All Department Widget > Select Merchandising > Run the Business
> Weekly Merchandising Instructions.

2. Expand the Weekly Merchandising Instructions and the appropriate week folder.
3. Select the appropriate department for the planogram.
4. To print, click the printer icon.

Printing Visual Merchandising Standards
To locate and print Visual Merchandising Standards, perform the following:

1. From Employee Toolkit (ETK) > All Department Widget > Select Merchandising > Run the Business
> Visual Merchandising Standards/Functionality.

2. Select an appropriate department area.
3. Expand the appropriate folder and click Visual Merchandising Standard.
4. To print, click the printer icon.

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MERCHANDISING PLANOGRAM AREAS 101

Printing Functionality Guides
To locate and print Functionality Guides, perform the following:

1. From Employee Toolkit (ETK) > All Department Widget > Select Merchandising > Run the Business
> Visual Merchandising Standards/Functionality.

2. Select an appropriate department area.

3. Expand the appropriate folder and click Functionality Guide.

4. To print, click the printer icon.

Step 4: Set fixtures and products according to planogram.
Products and fixtures should be set according to the planogram. See How to Read a Planogram section for
more details. After obtaining a printed copy of the planogram follow these steps when setting:

1. Review new SKUs number inventory data by checking inventory status on the Retek Stores Systems (RSS)
Lookup Item screen. This will eliminate time spent looking for product that may not be in the store. New
SKUs should be marked with an “N” code on the planogram.

2. Move any peg hooks, shelves, or other fixtures according to the planogram.

3. Locate new product SKU inventory and move to planogram location.

4. Relocate any other current product SKUs according to planogram.

5. If the location on the planogram is recognized as a Closeout location, use the available space for
Closeout, Open Item, or temporary not on planogram new SKU/Item Number product.

6. Manage Out of Stock Products
• Leave the space empty until stock replenishment and put an “Out of Stock” sign in the sign
holder or on the peg.
• Leave the display piece in place (when appropriate) to indicate to customers that we carry the
particular model. Allow the sale of a display piece only when it is a Clearance or Gone-When-
Gone product, no backstock remains, it is not on Ad, and no more product is on the way. Price
the last item according to the Open Item Pricing SOP and allow it to sell.
• Leave all signage in place. Do not remove signage or turn it to the blank side.
• If a product is also featured on an end cap, place the display item there, and place a "Check It
Out" sign inline to tell customers where the display is located.
• The same guidelines apply to accessories and other peg hook product. This allows for easy
replenishment and maintenance of all planogram areas.

7. Note on the printed planogram any missing fixtures or products and set the printed copy aside to be
filed in the Planogram File System.

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MERCHANDISING PLANOGRAM AREAS 101

Step 5: Set new signage, fixtures, vendor provided parts, and security parts according to Weekly
Merchandising Instructions. Follow these steps for using the Weekly Merchandising Instruction:

1. Reference the Weekly Merchandising Instruction to see if the planogram has new signage, fixtures,
vendor provided parts, and security parts.

2. Locate any parts that have been shipped in the weekly Merch Kit.

3. Locate any parts that have been shipped direct to store.

4. Set parts according to the Weekly Merchandising Instructions.

5. File completed Weekly Merchandising Instructions in the Planogram File System.

6. Refer to the Ad Set SOP for more details.

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MERCHANDISING PLANOGRAM AREAS 101

Step 6: Review Visual Merchandising Standard and Functionality Guides for additional
information regarding implementation and maintenance of the planogram.

Visual Merchandising Standards and Functionality guides supplement planograms and provide additional
information regarding implementation and maintenance of the planogram. Follow these steps for using
these documents:

1. Review applicable Visual Merchandising Standard for permanent fixture and signage direction or
asset protection measures.

2. Print applicable sections of the Visual Merchandising Standard and store with the planogram for
inspection.

3. Note any missing or damaged parts on the Visual Merchandising Standard for reorder.

4. Review Functionality Guides for specialized functionality install and maintenance instructions and
print as needed.

5. Special - Ensure the most recent version of Windows 8.1 demo is installed on all Windows desktops,
notebooks, and tablets as applicable.

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MERCHANDISING PLANOGRAM AREAS 101

Step 7: Planogram Completion and Final Verification.
• Set price signage for any new SKUs. See the Ad Set and Pricing SOP for step by step instructions for
pricing.
• If old product displays are removed from the planogram and marked as Open Item, change the
License Plate disposition to "Open Item". Assign License Plates to new SKU/Item Number displays.
See License Plate Maintenance SOP for more information.
• Clean and bright the planogram area as needed. See Clean and Bright SOP for more information.
• Order any missing parts via eSource. See eSource SOP for more information.
• Complete the Planogram Checklist and staple to completed planogram and Visual Merchandising
Standards.
• File the completed paperwork in the planogram file system.
• Use the Planogram Assistance Form for any planogram, map, or SKU/Item Number issues or
discrepancies if needed. To locate the Planogram Assistance Form from Employee Toolkit (ETK) >
All Department Widget > Select Merchandising > Run the Business > Planograms > Planogram
Assistance Form.
• Project Teams complete Notifications or Qtrax reporting for any
planograms they set.

Displays for Magnolia Home Theater Only
• Put all accessories and user manuals into an 8-½- x 11-inch
envelope labeled with the brand and SKU on the outside, upper-
right corner. Use one of the extra license plates to label this envelope.
• File envelopes in the warehouse in a file cabinet labeled Demo Unit Accessories.
• Display the unit per planogram instructions.
• Use one of the extra license plates to label the remote with the brand and SKU/Item Number
• Attach the label to the back of the remote.
• Test the unit to ensure proper functionality.
• Price the unit per the pricing guidelines.
• Vendor Loaned Product (MHT only) describes items that are on loan from the vendor. This product
should be labeled as DNI or Do Not Inventory will be supported directly with the vendor and not
repaired through the service center while it is on loan. Best Buy will take ownership at the products
end of life. At this time the product will be received by corporate, license plated and priced at a
discounted rate.

Placing New SKUs/Item Numbers
New SKUs/Item Numbers for upcoming planogram changes may arrive up to two weeks before the
scheduled planogram change or update. Merchandise this product according to the following guidelines:

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MERCHANDISING PLANOGRAM AREAS 101

Placement in All Stores
• Check Planogram Search by SKU on the Space Management website for planogram information
specific to the new SKU/Item Number.
• Use the Retail Merch Kit Date (MKD) Visibility Tool on the Space Management website to identify
SKUs/Item Numbers adding and dropping from a planogram up to ten days in advance.
• Do not replace planogram product with new SKU/Item Number product.
• If the SKU/Item Number is listed for the future planogram, place product in an open planogram
position.
• Implement new SKUs/Item Numbers on the floor upon arrival and as time allows. Assign a License
Plate to all new SKUs/Item Numbers being displayed.
• If an open planogram position is not available, temporarily use non-planogram endcaps (see the
layout map for these locations) to display the new SKU/Item Number until the planogram officially
changes. For proper merchandising instructions, see the Endcaps Blank Visual Merchandising
Standards.
• If there is still not enough room to place new SKUs/Item Numbers on the floor, place product in
top-stock or in the warehouse until an open position is available or the planogram is reset
(whichever occurs first).

New SKU/Item Number Not Listed on Future Planogram
Place not-on-planogram (NOP) products in the warehouse in a designated location (secured location for
products that require security).

• Provide the Leadership Team with the brand, model, and SKU/Item Number of the products.
• Complete the Planogram Assistance Form and ensure the following:

o If two or fewer not-on-planogram products are received, do not sell them until 48 hours after
submitting the Planogram Assistance Form.

o If more than two not-on-planogram units are received, do not sell them without transfer
direction from the Retail Supply Chain Manager (RSCM).

• Response from the Planogram Assistance Form in 48 business hours with one of the following:
o Confirmation of the future planogram in which the SKU/Item Number will be located.
o Confirmation that the SKU/Item Number is NOT for your location and that the information
has been forwarded to the respective Inventory Analyst for a requested Return to
Warehouse on the next available return (occurs near the end of each month).

• If the SKU/Item Number is valid for an upcoming planogram, merchandise the product according to
the process for the arrival and placement of new SKUs/Item Numbers.

• If the SKU/Item Number is not for your location, attach a copy of the confirmation to the product
and place it in the warehouse. Inform the Leadership Team that the non-planogram SKUs/Item
Numbers have been researched and set aside in the warehouse for the next available return. Ensure
Sales Teams do not merchandise or sell the product.

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Note: The only exception to this process occurs if the product received appears in an upcoming
Ad and no disclaimer excluding your specific store number is in the Ad. Details regarding this
situation are outlined below.

New SKU/Item Number Not on Planogram – Product in Future Ad
All stores are required to display or have available all items featured in the Ad.

• If units are not available, or if the store runs out of an advertised item, always offer a raincheck or a
substitute.

• If not-on-planogram product is received for an upcoming Ad in which there is no disclaimer in the
Ad excluding your specific store number, complete the Planogram Assistance Form with
information regarding the brand, model, and SKU/Item Number of the product as well as the date
of the Ad and market in which the store is located. Continue to sell all remaining units.

Identifying Non-Planogram (Sell-Through) SKUs/Item Numbers
Identify SKUs/Item Numbers that have fallen off the planogram after a planogram reset in one of the
following ways:

• View the exit plan for the product, titled "Items Removed from Planogram," which is located on the
last page of the planogram.

• Identify that an old SKU/Item Number and a new SKU/Item Number are shown on the planogram
using the same key number.

• Note: The new SKU/Item Number takes precedence, and the old SKU/Item Number now falls off the
planogram and becomes sell through.

When a SKU/Item Number falls off the planogram after a planogram reset, perform the following:
• If the SKUs/Item Numbers contain a sell-through exit plan, place them in planogram closeout
locations or in the store designated Clearance locations to sell all remaining stock (including the
display).
• Merchandise these products according to the process for merchandising new SKUs/Item Numbers.
• Do not return products to the Delivery Distribution Center (DDC) unless they are identified for a
return on the last page of the planogram. Official return information will be communicated to
Inventory Teams near the end of each month.

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MERCHANDISING PLANOGRAM AREAS 101

Planogram Search by SKU
Use Planogram Search by SKU on the Space Management website to determine the placement
planogram, key location, and disposition code of a specific SKU/Item Number. Complete the following:

• Access the Space Management website.
• Click the Planogram Search by SKU/UPC.
• Select store location using the drop-down list box.
• Key either the SKU/Item Number or the UPC in the appropriate field.
• Click GO.

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MERCHANDISING PLANOGRAM AREAS 101

Reading a Planogram
Each planogram page provides the following information:

• Category - This is the department/area in which the title is located
• Title - This is the title of the planogram and ties to the map tag.
• Subtitle and Segmentation - Subtitle indicates the length of the planogram in linear feet and

segmentation is tied to the product assortment for the store. Subtitle and segmentation together
indicate the specific version of the planogram for this store.
• Page Number - Indicates the page number of the planogram. Most planograms have at least two
pages.
• Merchandising Kit Date - Used to verify that the planogram is the most current version. This
indicates the last time the planogram was updated but might not indicate the last time it was set.
Planograms are occasionally updated in ways that do not require action from the store (Concept
update).
• Planogram Notes - Additional merchandising information to assist in properly setting the
planogram.

Most planograms have four primary sections:

1. Full View
Shows a full view of the planogram outlining the overall flow of product and fixtures. This page also
contains the required standard fixture parts for this planogram.

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MERCHANDISING PLANOGRAM AREAS 101

2. Section View
Shows view of specific section(s) of the planogram including
detail listing of SKUs for these section(s). This section also
shows shelf heights and placeholders for signage and vendor
provided parts. The list of letter codes used in the Code
column of the product listing calls out important information
about a particular SKU/Item Number.

• "N" – New SKU/Item Number
New SKUs/Item Numbers replace product directly
above it on the product list. New SKUs/Item Numbers
always take precedence and should be merchandised
immediately upon arrival.

• "D" – Display Product Sign Only
Place only the price sign in the location. The current
product on display is related in some way but may differ
in size, color, or other features.

• "M" – Display Only
No Box Stock/Up stock is sent to store. B&M warehouse replenished.

• "P" – Display Product Sign Only and Box Stock
Place the price sign on the shelf and place the box stock below the sign. The display is
related in some way but may differ in size, color, or other features.

• "Q" – Demo SKU/Item Number
The SKU/Item Number on display is different from box stock. The manufacturer sent a demo
product different from the actual unit on sale. The unit may have limited capabilities and is
not for sale.

• "SE" – Source Equipment
Source Equipment (SE) SKUs/Item Numbers are
used to operate displays that are part of the
planogram. Continue to use the current SE product
and do not replace it unless it is defective. Replace
defective units with the current SE product listed on
the planogram.

• "C" – .Com – Excluding Puerto Rico Stores
The product on display is available through
BestBuy.com.

3. Product Listing View
Product Listings at the end of each planogram are sorted by
key. The key follows the flow of the products on the
planogram fixture. Use this key to assist with setting
planogram product. Transition items are listed together on
the key, regardless of supplier.

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MERCHANDISING PLANOGRAM AREAS 101
4. Items Removed from Planogram View
This page contains information regarding items that no longer appear on the planogram. It includes
SKU/Item Number, UPC, supplier, model, disposition, and description of each product to be removed
from the planogram. Product disposition guidelines are outlined follows:

• Relocated Out (O) - Planogram
implemented into a different area

• Sendback (S) – Return to
Warehouse - Authorized SKUs/Item
Numbers to send back to the DC
during the next Sendback – Return-
to-Warehouse cycle

• Sell Through (G) - Product remains
in-store and must be sold. Position
this product in a Closeout or open
location within the planogram
implementation area.

The Product Disposition List provides clear,
consistent direction on discontinued items,
relocated SKUs/Item Numbers, and items to be
returned. It is a proactive step in the process, as
it addresses disposition issues at an early stage
to reduce confusion and follow-up at the store
level.

Movie Inline Planogram Set

Teams will execute In-line Movie planogram set three times per year. Product will arrive labelled identifying the
product for the reset based on the week the store reset is scheduled. Movies POG set can be performed
throughout the week or as a one day project with more than one team member.

The following guidelines must be adhered to:

• Reference the Movie Inline Planogram Process Job Aid
• Product cannot be flexed or spined
• If there is no inventory on hand of a planogrammed title, leave to space vacant/open with the

planogrammed ISP tag
• During the week of the Movies Inline Planogram set, do not set Promo Flags/Value Messaging signs

until the inline planogram set is complete
• Product will ship to stores labeled to “Hold for Movies Inline Planogram Reset.” All product labeled

for reset should be held in the backroom until the day of the reset
• Utilize the Movie Inline Reset Backroom Management signs
• Ensure that movies existing in inventory with price stickers are placed in the front of the designated

section for quicker sell through of price sticker product. If product does not currently have a sticker,
do not place a yellow Best Buy price stickers on product
• New movies product will continue to ship without regular pricing included on the stickers, with the
exception of Treasure Bin product

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MERCHANDISING PLANOGRAM AREAS 101

Planogram File System
Store Teams and Project Teams should partner to maintain the Planogram File System. This system will
assist teams with planogram communication, execution, and audits to enable Merchandising Excellence to
create an inviting, consistent, and predictable environment. This filing system allows all store, district, and
territory staff to understand the execution status of all planograms.

File System Categories (in order) • Gen Merch
• Blank Planogram Checklists • HT
• Current Week Merch Instructions • Magnolia
• Planograms to be set • Mobile Electronics
• Completed to be Inspected • MP3
• Inspected to be filed • Software
• Appliances • Solutions
• BBY Mobile • Video Games
• Computers
• Digital Imaging

File System Details

Blank Planogram Checklist
This file contains blank planogram checklists for the Project Teams and
Operations to use.

Current Merch Instructions
The current Merchandising Instructions are filed once the ad set is completed by the Operations
team.

• The printed instructions are moved from the Next week’s Merch Instruction folder into
this folder on Sunday.

Planograms to be Set
• Planograms to be set in current week or upcoming week.

Completed to be Inspected
Once a planogram is completed by Project Team or store team member the planogram is filed into
this folder for inspection by Operations Manager/Supervisor.

• After the planogram has been inspected, it is signed off as complete and moved to the
Inspected to be Filed folder.

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