Merchandising Tips For Key Categories

IGA's Red Oval CPG partnerships are a valuable part of the IGA membership. They provide the product offers in your national digital ad — which shoppers love, as they redeemed nearly $2.1 million last year (that's a 241% increase from 2022!) — and further support IGA by helping develop, fund, and execute marketing events.

Over the past year, our Red Oval CPG partners have been supporting IGA retailers and their licensed distribution centers by providing valuable category expertise to help retailers grow sales. With a new year upon us, what better time to ensure your store teams are taking advantage of this expert advice? Find merchandising tips for key categories below and let us know how you are implementing it in your store — we'll feature your story in The IGA Minute!

Psst...get the latest category insights whenever you need them by visiting this page.

Coffee & Tea Visual Merchandising Tips

Peet's Coffee shared this schematic with best coffee merchandising practices for independent retailers and recommends defining segmentation by value tier:

• Super-premium on top shelves
• Dedicated space to espresso capsules (a growing premium segment)
• Premium/mainstream in middle shelves (at eye level)
• Value segments near the bottom (canisters, private label, and instant coffee)
• Filters on bottom shelf

In the tea category, Hain Celestial noted that shoppers often experience confusion at the shelf due to duplication, so independents can improve shopability by not overstocking.

For example, the average grocery retailer carries 245 tea items, but the top 5% of items in the category contribute 80% of the volume. Use the data to revise your selection to carry these top-selling teas, while reducing assortment duplication (i.e. carry one-two brands in these key tea flavors instead of multiple brands):

• Peppermint
• Earl grey
• Chamomile
• Matcha
• Sleep tea

Packaged Potato Assortment & Merchandising Tips

With over 4 million new households shopping the packaged potato category last year, this category should be top-of-mind for independent grocers catering to shoppers with young families looking for quick and healthy solutions. The Idahoan team is helping independents restore their shelves to pre-COVID levels with advice on optimal assortments and merchandising.

Optimize the Assortment

• Carry the right mix of SKUs. For optimal assortment, download these best practices from Idahoan.
• Focus on the growth segments of family size flavored mashed and flavored mashed cups.
• Carry a variety of flavors to encourage basket building.

Gold Standard Merchandising

• Organize the set by segment first (flavored mashed, casseroles, original mashed), then brand.
• Put flavored mashed pouches in the prime position, with similar flavors together.
• Make sure top selling items have multiple facings.

New & Seasonal Product Merchandising

Quaker recently launched a new product innovation, and with it delivered merchandising tips for attracting attention to new offerings. They recommended an end cap featuring Quaker Fruit Fusion to welcome shoppers to your hot cereal aisle, like the one pictured below. Not only does it pique interest in the new product, but can also attract shoppers to the hot cereal aisle due to the new product’s bold and vibrant packaging. Another option? Placing a POP display in the cereal aisle to highlight the product. 

The end cap/POP approach applies to seasonal products as well. SC Johnson, who is behind the popular Ziploc Endurables reusable silicone bag line, recommends putting displays in high traffic areas with the appropriate seasonal call outs, like spring cleaning or back-to-school.

This a great way to market these products for consumers, as 57% of shoppers learn about durable bags while they're in the store, according to SC Johnson. The Ziploc Endurables shipper (pictured below) allows stores to easily place these products in high foot traffic areas. 

Leverage Custom Sign Kits For Special Categories

IGA and Nestlé Purina PetCare have created updated pet category signage to drive pet category sales in your store. And drive sales it does. Houchens Food Group installed the Happy and Healthy Pets sign kit in 85 of their stores in May 2023. Coupled with a playbook that offered merchandising tips, the stores experienced:

• 24% YOY sales lift
• 14% YOY unit increase

That's a pretty big lift for just ordering and installing new signs in the aisle!

Whether you're looking to fully restore your shelves this season with the optimal assortment per category or simply want to rework one category, IGA's Red Oval Partners are here to help. Check out the updated category insights page for resources you can use now, and contact us if there's a category we haven't covered yet that you'd like to gain insights on!