Positioning potatoes for superior sales
Positioning potatoes for superior sales
Produce departments that keep their spuds tucked away in the back are missing out on natural growth opportunities, advised Ross Johnson, vice president of retail for the Idaho Potato Commission. No matter what the demographics of a retailer’s market are, savvy potato merchandising can help propel higher sales through the entire produce department. Eighty-five percent of all U.S. households purchase potatoes, according to Circana research commissioned by IPC, and these customers can drive up store profits with their average shopper basket size of $86.
IPC field directors are uniquely positioned to provide personalized data analysis for every market, said Johnson, they also help craft strategies that allow category managers to be recognized for bringing substantial dollar growth to the category. “By surveying supermarkets throughout the country, IPC maintains data that can serve as the basis for retail merchandising decisions based on real world analysis,” Johnson said.
Showcasing spuds
Making room for a wide variety of spuds — from russet and yellow to red and white — is essential to leveraging the potato category to its fullest. The highest-performing retailers dedicate 15 feet on average to potatoes, according to Potatoes USA.
Within the potato area, displaying tubers in-store with more than one type of shelving fixture is associated with higher sales, along with using an even amount of marketing and price tags so shoppers can easily find the potato category.
Fifty-six percent of shoppers are influenced on their potato decisions at the shelf, said Johnson, and in-store promotions are a proven tactic for capitalizing on Idaho® potato appeal, especially secondary displays. IPC research shows secondary displays of Idaho spuds resulted in an incremental 22 percent sales dollar growth versus comparable stores, without cannibalizing other potato sales. Test stores that exhibited secondary displays of Idaho russets delivered a 10-fold growth advantage, while comparison stores with no secondary display saw only an average category growth of 2.5 percent.
The 1,700-plus potato recipes in the IPC recipe database at idahopotato.com/recipes also serve as an important in-store promotional tool for retailers, said Johnson. “Potato recipes can significantly motivate purchases,” he said. “We have Idaho potato recipes available for download with high-resolution photos. These can be used in retailer advertising, and retailers can also promote the website address so their shoppers can browse the recipes in-store on their smartphone.”
Advertising advantages
With 90 percent of all shoppers pre-planning their potato trip, advertising to them is important for getting these consumers into your produce department, said Johnson. Most shoppers use ads to make their potato shopping decisions, so regularly promoting premium Idaho potatoes in ads can play a big role in driving store traffic and elevating the brand value of your retail banner.
“IPC research shows that price heavily influences a shopper’s preferred store, and nearly two-thirds of all shoppers compare fresh potato prices before going to the store,” he said.
Johnson said both in-store and advertising circular promotions are excellent vehicles for promoting russets, which account for more than 50 percent of all potato dollars. Retailers who focus on Russet ads enjoy a typical sales growth up to 13 percent higher than the competition, according to IPC research.
For more detailed guidance about the most effective Idaho potato resources for specific retail markets, contact your regional IPC retail promotion director by clicking on www.idahopotato.com/retail.