Introduction

Retailers who offer a diverse range of potato options not only increase overall sales but also benefit from higher everyday prices. A merchandising best practices study has shown that successful grocery retailers focus on optimizing in store potato displays to attract more shoppers.

The study revealed that simple tactics such as better assortment, attractive placement, and clear signage can significantly enhance customer engagement. By applying these strategies retailers can strengthen the value of the potato category and boost store performance.

Background

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.

Potato type Categories

Fresh potatoes can be grouped into four key categories for retailers:

• Traditional mainstays: Russet and Red
  The foundation of the fresh potato category, these are the most well-known and frequently purchased by consumers.
• Key options: Yellow and White 
  These varieties are also familiar to consumers but are purchased less frequently compared to russet and red potatoes.
• Growth drivers: Petite and Medley
  These categories are experiencing significant growth in sales percentage. However, they still represent a relatively small share of total retail potato sales.
• Up and comers: Purple and Other Specialty Potatoes
  Varieties such as purple and fingerling potatoes are also increasing in sales percentage and are considered emerging options in the category.

Package size

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.

Package size categories

Fresh potatoes can be classified into four different package size categories based on bag weight:

• Small package: 0.1 – 3 lbs
• Medium package: 3 – 9.9 lbs
• Large package: 10 lbs and above
• Bulk: Random weight (loose potatoes sold by weight)

Package size recommendations

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.

Incrementality 

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.

Top Incremental Potato Products 

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.

More diversity equals higher sales

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.

Did You Know?

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.

Spacing

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.

Space dedication

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: 14.9 feet
• Middle-performing retailers: 12.4 feet
• Bottom-performing retailers: 10.2 feet

Did you know?

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.

Shelving

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.

Types of potato shelving

Grocery stores use a mix of shelving styles to display potatoes, each serving a unique purpose in attracting shoppers and moving product:

• Cardboard boxes – Often used as shippers or floor displays, cardboard boxes are a cost-effective way to promote value packs and seasonal specials. They create a sense of abundance and are easy to restock.
• Bins – Large bulk bins give shoppers the option to hand-select their potatoes. They work well for russets and other high-volume varieties, reinforcing freshness and choice.
• Vertical shelving – Traditional shelving units maximize space and make it easy for consumers to compare different pack sizes and potato types at eye level.
• Tables – Produce tables are great for creating attractive, market style displays that highlight specialty or promotional items, such as petite, medley or purple potatoes.

Shelving distribution

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.

Did you know?

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.

Signage

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.

Types of potato signage

• Price signs – These are straightforward, showing consumers exactly what they will pay for potatoes.
• Marketing signs – These highlight where potatoes are located in the produce department and serve as visual reminders to purchase, often encouraging impulse sales.

Signage recommendations

• Maintain an even balance between marketing signs and price signs. Top-performing retailers that do this see increased potato sales.
• Avoid using too many price signs. Middle-performing retailers often overuse them, which can confuse consumers and result in reduced sales.
• Clearly mark the potato category with a marketing sign. When consumers are reminded to buy potatoes and can easily see the price, sales increase across all types and pack sizes.

Did you know?

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.

Promoting potatoes

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.

Strategizing promotions

Top-performing retailers diversify their promotional strategies, leading to a higher average everyday price and fewer deep discounts throughout the year. Effective tactics include:

• Highlight core varieties during peak demand. Promote russet, red, yellow, and white potatoes during high-volume months by creating eye-catching secondary displays that encourage bulk purchases.
• Introduce consumers to specialty varieties. Use temporary price reductions on less familiar types—such as petite, medley, and purple potatoes—during peak shopping months to encourage trial and adoption.
• Use lighter discounts. Since potatoes are already affordable, avoid deep discounts. Instead, use promotional dollars to remind consumers to buy potatoes, not to train them to only purchase when prices drop.
• Time discounts strategically. Reduce the number of discounts on staple varieties during heavy-volume months, and shift discount dollars to slower months. For example, discount russets in June rather than in November when sales are already strong.

Did you know?

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."