The study categorized retailers into three distinct groups, each showing different patterns in potato sales and merchandising performance. Researchers evaluated sales data and in store merchandising practices to identify the factors driving growth for some retailers while limiting others. To ensure accuracy, data was analyzed across different phases before, during and after the surge in panic buying seen in 2020 so that the recommendations reflect normal purchasing behaviors rather than temporary spikes.
Top Performing Retailers: Retailers that increased potato sales during the panic buying phase of early 2020 and successfully sustained this growth through July 2024.
Middle Performing Retailers: Retailers that grew sales during panic buying and maintained higher overall store sales through July 2024, but did not achieve sustained growth in potato sales.
Bottom Performing Retailers: Retailers that experienced declines in both total store sales and potato sales once panic buying subsided.
Demand for packaged potatoes especially smaller pack sizes has been increasing. Although consumer preferences are shifting toward convenience and smaller portions, a variety of pack sizes still plays an important role in meeting the diverse needs of grocery shoppers.
Fresh potatoes can be classified into four different package size categories based on bag weight:
Top performing retailers strategically allocate shelf space for each package size based on consumer preferences. This ensures that shoppers can easily find the pack size that best fits their needs, while also maximizing sales potential across all package categories.
Incremental potato Stock Keeping Units are products that add extra value to the category. Rather than taking away from traditional mainstays or key options, they generate additional sales and growth opportunities for retailers.
The top ten incremental potato Stock Keeping Units span across multiple potato types but are all offered in package sizes of five pounds or less:
The top incremental potato products include Petite potatoes in 1.5-lb (24 ounce (oz)) and 1.6-lb (24 oz) packs, Red potatoes in 1.5-lb (24 oz) packs and Russet potatoes in 2.5-lb (40 oz) packs. Flavored options are also popular, such as Red potatoes in a 1-lb (16 oz) Garlic Parsley pack and Other varieties in a 1-lb (16 oz) Savory Herb pack. Larger options like Yellow potatoes in a 5-lb (80 oz) pack and Red potatoes in a 3-lb pack also drive incremental sales. Additionally, Medley potatoes in 1.5-lb (24 oz) packs and repeated purchases of Petite potatoes in 1.5-lb (24 oz) packs further strengthen category growth.
Retailers that carry a diverse assortment of potatoes including lesser known varieties such as petite, medley and purple, alongside staples like russets, reds, yellows, and whites experience increased sales across all types and package sizes. In contrast, retailers that rely too heavily on five- and ten pound bags of russets have seen a decline in overall sales.
Offering more diversity in smaller pack sizes and value added potato Stock Keeping Units drives incremental growth in potato sales. In contrast, relying too heavily on large pack sizes of russets can have the opposite effect, leading to slower growth or even declines.
Space is a valuable commodity in grocery stores. For potatoes just like for other categories—finding the right balance of what to stock and in what quantities is essential for maximizing sales.
Below is the average space three types of retailers dedicate to potatoes. Research shows that more space directly translates into higher sales for top performing retailers:
Top-performing retailers dedicate an average of 15 feet to potatoes and consistently achieve higher sales than middle and bottom-performing retailers. Simply put: more potatoes on display equals more sales across all types.
In the produce department, grocery stores typically use four different types of shelving to display potatoes. The way potatoes are displayed not only helps consumers easily identify different varieties and pack sizes but also improves accessibility and convenience. Effective shelving strategies can influence shopper behavior, encourage trial of new potato types and ultimately increase overall category sales.
Grocery stores use a mix of shelving styles to display potatoes, each serving a unique purpose in attracting shoppers and moving product:
Top performing retailers diversify their potato displays, using a mix of shelving styles to create visually appealing and convenient options for shoppers. In contrast, bottom performing retailers rely almost exclusively on tables, which limits variety and reduces consumer engagement.
Grocery retailers that use more than one type of shelving to showcase potatoes consistently sell more. By combining different shelving fixtures such as primary shelves, secondary displays, bins or endcaps retailers can create variety, draw more attention and better highlight both staple and specialty potato options. In short, using multiple shelving types makes potatoes more visible, more appealing and more likely to end up in shoppers baskets.
In grocery stores, potato signage generally falls into two categories: price focused and marketing focused. Both play an important role in helping consumers locate potatoes and make purchasing decisions.
Having an equal number of marketing and price signs helps grow potato sales by making it simple for shoppers to find potatoes and understand the price whether at full price or discounted.
Promotion does not always have to mean offering a discount. It can also involve highlighting potatoes in ways that draw shoppers into the store and encourage them to purchase. In fact, 76% of potatoes are purchased at full price, which means retailers can use promotions and discount dollars more strategically to grow overall sales without heavily cutting margins.
Top-performing retailers diversify their promotional strategies, leading to a higher average everyday price and fewer deep discounts throughout the year. Effective tactics include:
Grocery retailers who promote potatoes strategically achieve a higher average everyday price across all varieties while still driving incremental sales growth.
"Diverse potato offerings and strategic merchandising not only elevate sales but also transform the humble spud into a cornerstone of retail success."
