Big leagues making big plays - sports-licensed products

Discount Store News, Feb 5, 1996 by Richard Halverson

The glory days of fantastic leaps in sales growth for professional sports-licensed apparel and other products lie behind the industry for now, but the business remains far too vital to lie fallow.

Volume for pro sports-licensed merchandise from all four major sports leagues totaled at least $12 billion in 1995, with some estimates as high as $15 billion. Products licensed by NASCAR (the major stock-car racing organization) added about $500 million.

Five years of substantial growth in the segment went flat in 1995 due to image problems and the general retail doldrums. To regain retailing momentum, league-licensing organizations are taking innovative steps.

One of the most ambitious programs in store for discounters will kick off at Back-to-school this August. GameDay, the NFL's first comprehensive program designed for discounters, will bring all NFL-licensed products under one umbrella, along with some cross-licenses like Coca-Cola.

The GameDay concept shop program will roll out for the '96-'97 season, said Leon Kane, senior product manager of retail licensing for NFL Properties, who is now pitching the program to the Big Three.

An umbrella platform, GameDay will pull all goods from NFL's 200 licensees together within a single store. The program includes apparel and backpacks, tailgate party goods from Hallmark, pencils, pens and other Back-to-School items from Mead, blankets, pennants, water bottles, footballs, video games and trading cards, as well as home products like nylon covers from Owens Corning for hot and cold tailgate dishes. The program will include products made by key NFL sponsors, such as Coca-Cola and Hershey's Kane said.

NFL-licensed sales at discount stores totaled $900 million for the '95-'96 season, up from the year prior by single-digit growth. Kane predicted that GameDay will drive sales up by at least 10%. Total sales of NFL-licensed goods were about 3 billion for '95.

Super Bowl goods alone are expected to total about $50 million in sales this year, even though the window of opportunity was just 13 days between playoffs and the big event. Those products, such as BBQ aprons, paper plates and ceramic mugs, were geared toward the fan at home.

To propel the GameDay concept, NFL Properties will provide signage, sweepstakes promotions, store appearances by key players and gift promotions such as a gift-for-purchase or a free GameDay booklet just for dropping by the shop. Discounters will be expected to provide extra advertising support in their circulars, Kane added.

The level of NFL merchandising know-how was proven during the just-ended football season at Sears, where sales of NFL-licensed apparel jumped 45% in the Sears NFL Shops at 600 of the chain's 810 stores. NFL Properties provided fixtures and signs that created an NFL stadium concept. The powerful presentation, strong on micromarketing, highlighted men's and boys' apparel.

"In addition to providing an exciting merchandise presentation, the NFL Shop enhances our local market focus initiative," said Jack Guze, Sears group vp of men's and children's apparel and family footwear. "We want football fans to know they can count on Sears for their official NFL home team merchandise."

NFL provided autographed jerseys, helmets and footballs for 10 hometown quarterbacks. Displayed by Sears in ersatz trophy cases, the items are to be donated to a fundraising auction for The Children's Miracle Network, which supports children's hospitals. NFL Properties also provided action photo graphics of a star player from the home team, its stadium and team logo. Other support came in the form of POP topper cards of six NFL shields and six market-specific team logos.

Sears will keep the team shop concept, shifting in spring to basketball, baseball and hockey, said Sears spokeswoman Mary Ann O'Rourke.

One regional discounter that is already directing a strong micromarketing effort powered by NFL licensed goods is Venture.

In Dallas, for example, the chain's all-new Team Shops were teeming with Dallas Cowboys Super Bowl merchandise early last month, said Ed Uchtman, Venture senior vp and gmm for men's and children's apparel, sporting goods and toys. "We had as much Cowboys product as we could get for all 11 Dallas stores."

Dallas is a natural, regardless of local impact. Of the 30 NFL teams, Dallas accounted for 22% of the volume of licensed goods last year. The next most-popular item, the 49ers, made up 11%.

Venture in its remerchandising is placing a high priority on its Team Shop to promote licensed products. By mid-February, it will have Team Shops operating in all 105 stores. Space will vary by store size, but typically will run about 4,000 sq. ft.

The Team Shop will be located in the middle of the sporting goods department. The Team Shop represents a net increase in square footage devoted to licensed apparel, Uchtman said.

The number of skus will be a moving target. In addition to the pro sports-licensed products, Venture also intends to carry licensed apparel programs by Wilson, Spalding and Rawlings, including licensed sweats, tank tops and shorts.