Jun 13, 2024Study pinpoints best practices of successful potato retailers
A merchandising best practices study conducted by Potatoes USA in partnership with Information Resources Inc. uncovered key insights, including three top areas of focus for retailers.
Merchandising Best Practices for Fresh Potatoes, conducted in 2022, divided retailers into three groups: top-performing (retailers who grew sales during panic buying of early 2020 and maintained increased potato sales through July 2021; middle-performing (retailers who grew sales during panic buying of early 2020 and maintained increased total store sales through July 2021 but did not increase sales after panic buying subsided); and bottom-performing (retailers who decreased both store sales and potato sales once panic buying subsided).
The study (.pdf) found that top-performing retailers carry more potato types, designate more space to potatoes (an average of 15 feet for all fresh potato types), and use price signs and marketing signs equally.
“Retailers who have diverse potato sets not only sell more potatoes but also get a higher everyday price for potatoes,” according to the report.
The report analyzed best practices by 24 retailers designated top tier, 25 designated middle and 24 designated bottom.
The analysis also identified three key areas of focus to increase fresh potato sales: assortment, displays and promotions.
Categories of potatoes
The report broke down eight types of fresh potatoes carried by retailers into four categories:
- Traditional mainstays: russet and red: The base of the fresh potato category, traditional mainstays are commonly known and regularly purchased by retail consumers.
- Key options: yellow and white: Key options are commonly known, but not purchased as frequently by retail consumers.
- Growth drivers: petite and medley: Growth drivers are growing significantly in percentage sales but still make up a small portion of overall retail potato sales.
- Up-and-comers: purple and all other potatoes: Choices such as purple and fingerling potatoes are growing in percentage sales.
“Russet potatoes make up the largest volume share sales of potatoes and are the base of a potato category,” according to the report. “It is a good place to start when building the category, but it is not the only potato that matters.”
The report also looked at package size, finding that top-performing retailers allocate a specific amount of space for each size based on consumer preferences. Successful retailers offer more variety in bulk potatoes and more options in smaller pack sizes, according to the report.
The analysis also revealed shelving and signage recommendations as well as promotion strategies.
