Glossary

Facings

A facing is one unit of a product visible at the front of the shelf. An item with four facings occupies four units of width at eye level in the planogram, and an item with one facing occupies one. Facings determine how much of the shelf a product owns and, with it, how easily a shopper finds it.

How it works

Facings are allocated by the retailer, decided at line review, and recorded in the planogram that store staff follow when they set the shelf.

The allocation is driven by how the item performs in that space. An item selling quickly needs more facings simply to hold stock between replenishments. An item selling slowly has its facings reduced, which makes it harder to find, which slows it further.

Two things follow from more facings. The product is more visible, so more shoppers notice it. And there is more stock on the shelf, so it is less likely to run out between deliveries. The second effect is often larger than brands expect.

Why it matters

Facings are one of the few variables in retail that compound. More facings make a product easier to find and less likely to be out of stock, both of which raise sales, which strengthens the case for more facings at the next line review.

The reverse compounds too. A facing lost is sales lost, which weakens next year's case, which costs another facing.

This is why brands treat facings as a strategic negotiation rather than a cosmetic one. The number itself is small, but what it sets in motion over several review cycles is large.

Example

A brand's item is cut from three facings to two in a planogram reset. Sales fall more than the shelf reduction alone would suggest, because the item now runs out more often between deliveries and shoppers who cannot find it buy something else. At the next review the item's slower turns make the case for restoring the third facing harder than the case for taking a second.

Common mistake

Negotiating for total facings across the store rather than position and facings in the planograms that matter. Facings in a low-traffic format or a poorly positioned set are worth considerably less than fewer facings at eye level in a high-volume one.

Where TrueLoyal fits: Shelf allocation sits with the retailer. What a brand can own is the relationship with the shoppers themselves. TrueLoyal uses receipt scanning and member programs to give brands a direct line to the people buying in stores they do not control.

Frequently asked questions

How many facings should a product have?

There is no general answer. The working test is whether the facings hold enough stock to last between deliveries at the item's rate of sale. An item that runs out before replenishment is under-faced regardless of how the number compares to competitors.

Do more facings always mean more sales?

More facings generally help, through visibility and through reduced out-of-stock, but the gain flattens. Beyond the point where the shelf reliably holds stock between deliveries, additional facings add less.

Who decides facings?

The retailer's category manager decides at line review, and the decision is recorded in the planogram. The brand presents a case, and the decision is the retailer's.

What is the relationship between facings and out-of-stock?

The relationship is direct. Facings determine how many units sit on the shelf, so fewer facings means the shelf empties sooner between deliveries. Out-of-stock problems are frequently a facings problem rather than a supply problem.

Related terms

Retail and category vocabulary
Planogram

A planogram is the retailer's diagram of a shelf, specifying exactly which products sit where, on which shelf, in what order, and with how many facings each. Store staff set the shelf to match it. It is shortened to POG in most retail conversation.

Retail and category vocabulary
Line review

A line review is the meeting where a retailer decides what it will stock in a category for the coming period. Every item in the category is assessed, some are kept, some are cut, and new items are considered against the ones already on the shelf. For a brand selling through retail it is the single highest-stakes event of the year.

Retail and category vocabulary
Out-of-stock (OOS)

Out-of-stock, usually shortened to OOS, is a product not being on the shelf when a shopper looks for it. It is measured from the shelf rather than from the warehouse, which is the distinction that matters. A product can be in the store, in the back room, and still out of stock as far as the shopper is concerned. The same measure stated positively is on-shelf availability.

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