potatoes merchandising best practices · optimal merchandising for potatoes in retail settings. the...

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If these principles are executed at store level, opportunities for potato sales increase. ASSORTMENT SECONDARY LOCATION SHELVING PLACEMENT PLACEMENT WITHIN PRODUCE BACKGROUND Kantar Insights Consulting is a team of brand and marketing specialists who focus on growth opportunities in the retail sector. Kantar Insights Consulting gathered and analyzed performance data to generate quantifiable shelving recommendations for potatoes, executing audits in 23 different grocery retailers across the country in 200 stores. A review of layout, design and external factors enabled Kantar to develop principles to recommend the optimal merchandising for potatoes in retail settings. The stores that optimized their sets based on the recommended best practices saw an overall lift in potato sales. The following summarizes the best practices through statistical modeling and breaks it down into four categories that impact potato sales. FOUR STEPS TO MERCHANDISING OPTIMIZATION Potatoes Merchandising Best Practices

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If these principles are executed at store level, opportunities for potato sales increase.

ASSORTMENT SECONDARYLOCATION

SHELVING PLACEMENT

PLACEMENT WITHIN PRODUCE

BACKGROUNDKantar Insights Consulting is a team of brand and marketing specialists who focus on growth opportunities in the retail sector. Kantar Insights Consulting gathered and analyzed performance data to generate quantifiable shelving recommendations for potatoes, executing audits in 23 different grocery retailers across the country in 200 stores.

A review of layout, design and external factors enabled Kantar to develop principles to recommend the optimal merchandising for potatoes in retail settings. The stores that optimized their sets based on the recommended best practices saw an overall lift in potato sales.

The following summarizes the best practices through statistical modeling and breaks it down into four categories that impact potato sales.

FOUR STEPS TO MERCHANDISING OPTIMIZATION

Potatoes Merchandising Best Practices

RAISED BINS

5.2%TOTAL POTATO LIFT POTENTIAL

If the following recommendations are implemented in produce, it can bring a lift to potato sales.

Shelving plays a factor in sales lift. Raised bins, like the one below, are the only type of shelving associated with a positive lift in potato sales.

4.1%raised bins vertical shelving flat bins

-2.9% -3.3%

8.7%LIFT

2.9%LIFT

4.1%LIFT

Produce Location

FRONT AND RIGHT OF STORE

POTATO SIGNAGE VISIBLE FROM STORE ENTRANCE

RAISED BINS

Signage and Visibility

Type ofShelving

SHELVING PLACEMENT

Standalone sections, such as the ones below, help potatoes perform best.

Potatoes placed adjacent to the following products performed as follows:

BEST PLACEMENT NEAR AVOID PLACEMENT NEAR

apples 4.7%-3.8%

onions -4.7%

squash -9.5%

sweet potatoes

Potatoes perform best when they are in the right location in the produce department and merchandised next to the right commodities.

PLACEMENT WITHIN PRODUCE

2.8%LIFT

4.7%LIFT

5.4%LIFT

PotatoLocation

BACK LEFT OF PRODUCE SECTION

APPLES ACROSS FROM POTATOES

HAVE A STAND-ALONE SHELF

Commodities Across from Potatoes

Merchandised Alone

COMMODITIES ACROSS FROM POTATOES

4.3%TOTAL POTATO LIFT POTENTIAL

Merchandising assortment plays a huge role in potato sales. Having the right potatoes organized in the right order creates a lift in sales for the overall category.

1.4%LIFT

3.8%LIFT

5.7%LIFT

Primary Shelf Organization

ORGANIZE SHELF BY POTATO TYPE

VERTICAL BLOCKING

WHITE > YELLOW > RUSSET > RED

Shelf Blocking

Potato Type Flow

ASSORTMENT

While four main types of potatoes are available nationwide, other types are increasing their presence on the shelf. Organizing the potatoes section by type provides the highest lift and is most common.

1.4%

by potato type

by pack size

by pack type

-3.0%

0.6%

Both type and size play a factor in maximizing shelving integration.

3.6%TOTAL POTATO LIFT POTENTIAL

Potatoes arranged vertically by variety in the following order optimize sales: white, yellow, russet and red.

Please email [email protected] for more information.

WHITE YELLOW RUSSET RED

Each percentage is the optimum amount of space allocated for each type of potato.

PRIMARY SHELF ORGANIZATION

While types vary by retailer, the best national planogram including all potatoes is broken down by size, type and color. This assortment will optimize sales across retail outlets.

WHITE YELLOW RUSSET PURPLE RED A/O

9% 21% 35% 22% 11%2%

Small Petite

SmallConvenience

SmallConventional

Medium

Medium

Medium

Bulk

Medium

SmallSteamable Small Petite

Small Organic Small Organic

Medium

SmallMicrowavable

SmallMicrowavable

SmallMicrowavable

SmallConvenience

SmallConvenience

SmallConvenience

SmallConvenience

SmallConvenience

SmallOrganic

Medium Medium Medium Medium Medium

Bulk Large Large

Small Petite

SmallConventional

Small Petite

SmallFlavored

Medium

Bulk

Medium

SmallConventional

SmallCreamer

Small Petite

Small Assorted

SmallConvenience

SmallConventional

MediumCreamer Medium

SmallAssorted

SmallConvenience Medium

SmallConventional

SmallConventional

SmallConventional

SmallConventional

15% 22% 45% 18%

FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: CALIFORNIA

ASSORTMENT RECOMMENDATIONS: CALIFORNIA

LAYOUT EXAMPLE

4.6%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

11Medium 8Small Pack – Value Add

3Large 2Small Pack – Organic

3Bulk 8Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

2 12 8 2 9 2

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

ASSORTMENT RECOMMENDATIONS: GREAT LAKES

LAYOUT EXAMPLE

8.1%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

9Medium 13Small Pack – Value Add

1Large 3Small Pack – Organic

1Bulk 9Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

2 9 9 1 7 8

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.

FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: GREAT LAKES

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

ASSORTMENT RECOMMENDATIONS: MID-SOUTH

LAYOUT EXAMPLE

4.1%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

15Medium 17Small Pack – Value Add

4Large 1Small Pack – Organic

2Bulk 12Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

3 7 18 2 13 8

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.

FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: MID-SOUTH

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

ASSORTMENT RECOMMENDATIONS: SOUTHEAST

LAYOUT EXAMPLE

10.9%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

15Medium 17Small Pack – Value Add

3Large 1Small Pack – Organic

2Bulk 13Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

5 9 16 2 9 10

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: SOUTHEAST

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

ASSORTMENT RECOMMENDATIONS: NORTHEAST

LAYOUT EXAMPLE

4.4%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

15Medium 16Small Pack – Value Add

2Large 1Small Pack – Organic

4Bulk 12Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

4 13 14 1 12 6

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: NORTHEAST

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

ASSORTMENT RECOMMENDATIONS: PLAINS

LAYOUT EXAMPLE

7.7%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

18Medium 9Small Pack – Value Add

5Large 1Small Pack – Organic

3Bulk 13Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

2 10 16 1 11 8

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: PLAINS

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

ASSORTMENT RECOMMENDATIONS: SOUTH CENTRAL

LAYOUT EXAMPLE

4.8%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

13Medium 15Small Pack – Value Add

3Large 1Small Pack – Organic

3Bulk 8Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

3 7 16 1 11 5

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: SOUTH CENTRAL

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

ASSORTMENT RECOMMENDATIONS: WEST

LAYOUT EXAMPLE

4.0%VOLUME

POTENTIAL LIFT

Optimal Pack Size SKU Counts

15Medium 14Small Pack – Value Add

4Large 5Small Pack – Organic

3Bulk 8Small Pack – Conventional

Optimal SKU Count by Potato Type

White Yellow Russett Purple Red All Other

3 10 16 1 14 5

The planogram is an example of how the shelf can differ in display and assortment from the national recommendation.

Both sales and dollars can be impacted by optimizing the SKU assortment based

on regional specific recommendations.FRESH NATIONAL RECOMMENDED PLANOGRAM

FRESH RECOMMENDED PLANOGRAM: WEST

Sources: Kantar Insights Consulting. Merchandising and Shelving Study and Best Practices, July 2018. RichMix Methodology, August 2018. IRI Freshlook WE 12/31/17.

Sweet Potatoes -3.7% Corn -9.6%Broccoli -5.5%

© 2019 Potatoes USA. All rights reserved.For more information, visit PotatoRetailer.com

Sources: Kantar Insights Consulting,Merchandising and Shelving Study and Best Practices, July 2018.RichMix Methodology, August 2018.IRI Freshlook WE 12/31/17.

2.2%LIFT

4.1%LIFT

PotatoesSecondaryLocation

ENDCAPS IN PRODUCE SECTION

NEXT TO ONIONS

EndcapLocation

SECONDARY LOCATION

ENDCAP LOCATION

Secondary location can add a lift to potato sales by highlighting this commodity during peak selling periods. It is important to place the secondary in the right location to optimize sales.

Potatoes stand out on endcaps in the produce department. While the most common endcap placement is near sweet potatoes, the most successful is near onions.

3.1%TOTAL POTATO LIFT POTENTIAL

onions 4.1%