It happens every year in late August and early September. Retail produce sales begin to decline as primary volume drivers start to fade out of season for the year. The sudden exit of cherries, stone fruit, melons and sweet corn leaves a large sales void that is difficult to replicate. All retailers are stuck with trying to figure out how to keep the recent sales volume trend strong as they head into a traditionally much slower time of year.
Does this mean that we forget about driving sales until next summer? Not a chance! There are plenty of sales opportunities out there. One important opportunity category, which has been forgotten about all summer long, is the old reliable potato. As creatures of seasonal habit, we tend to hyper-focus on the many other exciting new arrivals and lose track of year-round important sales anchors like potatoes.
Read more: Potato merchandising inspiration from the Produce Artist Award Series
During 2020, the potato category gave us an incredible gift. According to Ross Johnson, director of category management at the Idaho Potato Commission, potatoes were up by double digits, with 10-pound russet potato bags reaching a 30% sales increase. Customers were obviously cooking more at home last year and enjoyed the quick value of bagged potatoes. In fact, 81% of meals were prepared at home, with most plates containing (yes, you guessed it) the ol' reliable potato!
Studies from the Idaho Potato Commission showed that the U.S. picked up two million new potato customers last year. Now is a great time to re-energize the potato category and keep the new consumer growth momentum strong. With the help of many industry experts, I put together some quick potato factoids and plenty of merchandising ideas to keep sales on pace with current customer demand. It's time to lean on the ol' reliable potato category for extra sales!
Read more: Display contest tips from the Idaho Potato Commission
Full assortment is key to maximizing sales
Validating your potato assortment is critical to year-round business. Assortments should give the customer an option of loose bulk potatoes, bagged potatoes, value-added ready-to-cook potatoes, and plenty of the trendy gourmet potatoes. (Gourmet potatoes are made up of creamers, babies and fingerlings. All are available in many different flavors, varieties and packaging.)
1. Do you have the right mix and space allocation ratio for bagged potatoes? For loose potatoes? Pictured below is a page out of the Idaho Potato Commission's playbook and proof that having the correct space allocation can boost overall category sales substantially.
2. According to a recent press release by Potatoes USA, yellow potato sales increased by 9.7% and volume increased by 7%. Do you have enough yellow potato SKUs and shelf space at your store(s)? Yellow varieties like Yukon gold potatoes continue to be on trend and growing. Stay on pace!
3. Gourmet potatoes, (creamers, babies and fingerlings), increased by double digits in value and volume. Do you have this double-digit growth category available for customers?
4. Value-added potato packages that are microwavable, grill ready or oven ready make an easy side dish meal solution for the fast shopper. What does your grab-n-go value-added potato SKU assortment look like? See photo below for a great example of packaged potatoes that are grill ready, microwave ready or oven ready.
Promotions and marketing support, including social media and dietician support
Potatoes need planned exposure in advertised promotions. A secret to my past success was using bagged russet potatoes as the item anchor that helped draw consumers into the category. A study performed by the Idaho Potato Commission showed that when bagged russet potatoes were promoted, 84% of customers purchasing that item also purchased a package of gourmet potatoes (creamers, babies or fingerlings). Win-win!
Industry supporters like the Idaho Potato Commission, Wisconsin Potato and Vegetable Growers Association, the Colorado Potato Administrative Committee, and Washington State Potato Commission all provide tremendous amounts of plug-and-play retail material to be used as marketing support.
This includes visual pictures for ad fliers, tons of social media content, and plenty of nutritional facts to keep your registered dietitian or nutritionist well stocked with healthy factoids. Take advantage of this free support!
Did you know? Using a photo of an actual bag of potatoes versus a picture of loose potatoes in the ad flier helps the customer easily understand the value of a full bag on sale. Photos of loose potatoes used for a bagged potato promotion easily confused the customer. When real estate space in an ad circular allows, use a bagged potato photo and a photo of a prepared potato dish. (This increases average customer basket size substantially.)
Promotion price-points that work
No need to give away potatoes in the weekly ad circular with retails that deflate the category. In fact, finding the sweet spot for an advertised price point should always result in a sales dollar boost and substantial unit movement increase for your entire potato category.
Singular price points like $1.99 for a 5-pound bag of russets are not nearly as effective as using price multiples like the 2 for $4 or $2 for $5 price points.
Using a multiple price point like 2 for $5 on a 5-pound bagged potato promotion that not only includes russets, but also yukons and reds, will increase overall dollars and unit movement substantially. This gives the consumer a chance to mix and match their preference. It often results in multiple bags of potatoes in many customers' shopping carts.
“Best in Class” merchandising and cross-merchandising
“Best in Class” potato merchandising always starts with the core fundamentals of color breaking and space allocation. It ends with high quality product on the shelf that is neatly stacked and includes the proper signage for each item. See two of my favorite pictures below for “Best in Class” merchandising examples.
At the top of my list for merchandising potatoes is the use of secondary potato displays. Studies by the Idaho Potato Commission showed a 22% sales increase with the use of secondary potato displays. One of the most popular secondary displays, often used as a bump-out in front of the regular potato section, is gourmet bagged babies, creamers or fingerlings. Remember, these are the incremental items that consumers pick up when purchasing bagged russets also.
If I was to select key items for a seasonally relevant secondary display, it would include russet potatoes, packaged sweet corn and sweet onions, perfect for the end of summer barbecues and Labor Day holiday gatherings.
My favorite cross-merchandising location for potatoes is in the meat/seafood department. A quick pop-up satellite display of tray-pack russet potatoes or a display of 24-ounce bagged baby potatoes makes for incremental sales all day long. If floor space in the meat department area is unavailable, try small lower-level potato displays built in front of the full-service meat and seafood cases. Potatoes are the perfect accompaniment for all protein items being sold from this full-service case and are often picked up by customers waiting for their steak, chicken or seafood items to be wrapped up.
The fastest and easiest way to increase potato category sales dollars and unit movement is no secret. Take advantage of the growers that produce display-ready bins of bagged potatoes. Park one, two or more of these bins adjacent to your primary potato display and watch the impulse sales take place. This type of merchandising requires very little labor and produces some huge returns! If you chose to display bagged russet bins throughout other locations of the store, always cross-merchandise gourmet potato items with them. Example: A spill-over of 24-ounce baby potatoes or fingerlings flanking the russet display bin creates another opportunity for incremental sales without jeopardizing the total category.
Ol' reliable needs your love!
The potato category needs some attention during this seasonal and transitional time of year. Now is the perfect time for exploiting the many opportunities potatoes can bring your store(s). Driving sales, increasing basket size, and helping customers stay on trend with more and more at-home cooking will be the results of giving old reliable a chance to perform. Please enjoy one of my favorite potato side dish recipe of all time, created by the folks at the Idaho Potato Commission. It includes the popular and trendy fingerling potato and everyone's favorite, bacon! How can you go wrong?
Scott Schuette is a produce retail veteran of more than 35 years and was most recently the vice president of produce and floral for Fresh Thyme Market. He has been named Produce Retailer of the Year and Specialty Food Retailer of the Year over the course of his decades of service to the fresh produce industry.