As grocery prices stabilise to more familiar levels following last year’s unprecedented surge, the summer sporting season, notably the Olympics and the Euros, presents a golden opportunity for suppliers and retailers. In addition to providing sporting entertainment, these events are catalysts for increased consumer activity, allowing retailers to boost their sales through effective activation.
The way in which fans engage with sports has transformed dramatically. The excitement surrounding major sporting events significantly impacts consumer behaviour. People are increasingly choosing to watch these events at home in line with the growth of at home consumption occasions, writes Dahlia Stroud, Senior Capability Consultant at Bridgethorne.
According to a study by Hello Fresh, three-quarters (76%) of England fans plan to watch the Euros tournament in the comfort of their own home, with 55% saying that cost is a factor in deciding whether or not to go to the pub or watch from home. This is a significant increase from the 45% that chose to watch more of the World Cup in 2022 at home than out of home (Toshiba TV survey).
Further fuelling this trend is the rise of remote and hybrid working patterns. A 2021 study found that a staggering 73% of respondents admit to watching sports at work, while 71% check scores or even read about sports. This means there’s an even larger audience consuming this content at home, creating a prime opportunity for retailers to capitalise on.
This shift presents a brilliant opportunity for suppliers and retailers to anticipate and cater to these evolving preferences. As retailers expand their partnerships with Deliveroo, Just Eat and Uber Eat, the ‘On Demand’ opportunity creates a new and immediate route to market to service customers on their sofas.
Evidently, there has been a noticeable uptick in footfall traffic and spending in grocery stores. For example, the last Euros tournament in 2021, saw UK retail sales rise 0.5% from May to June due to high demand throughout the competition, with June sales 9.5% higher than pre-pandemic levels. ‘Delivered convenience’ is a newer way for retailers to have an omnichannel offer and capture every last sale throughout the entire sporting event.
Both suppliers and retailers can anticipate this surge by analysing past sales data from similar events and adjusting their strategies accordingly. Understanding which products see the highest demand — such as snacks, beverages, and ready-to-eat meals — can help in planning inventory and promotions. Collaborative business planning needs to be a core part of how retailers and suppliers create a coherent approach to driving growth. This includes understanding channel specific sales opportunities and dynamic forecasting to send stock to the customer in the way they want to be serviced.
The Rise of Challenger Brands
Seasonal events like the Euros are a proving ground for challenger brands. These agile newcomers have a unique opportunity to showcase their creativity and carve out a niche in a competitive market through seasonal space opportunities. Challengers are testing boundaries by experimenting with bold flavours, novel packaging, and disruptive marketing strategies. Strategic product placement is crucial in attracting and retaining customer interest during the busy summer sports season. High-traffic areas within the store, such as entrances and at-till, are crucial places to capture customer attention with prominently displayed sports-themed products as a call to action to drive impulse sales.
The current Q3 investment and activation strategies will already be set in stone and are coming to life in store as you read this. However, the lessons learned from the summer season will be invaluable for future planning. Retailers should closely monitor sales data, consumer feedback, and social media trends to gain insights into what worked and what didn’t. Plan, do, reflect and review is a key part of the strategy to understand how stores manage activity and how customers respond to it. Continuous improvement should be a key part of retail strategies as they trade through seasonal events.
By analysing this data, retailers can identify emerging trends, anticipate future demands, and refine their revenue growth management strategies. Advanced forecasting tools and real-time inventory tracking can help retailers maintain optimal stock levels. Additionally, having contingency plans in place, such as flexible restocking schedules and the ability to quickly reorder popular items, can prevent shortages and keep customers happy.
HFSS – A catalyst for innovation
The implementation of HFSS regulations in the UK has undoubtedly impacted the seasonal and promotional aisles. Retailers are now more conscious of the nutritional profile of their offerings, and suppliers are reformulating products to meet the new standards. While this may seem like a constraint, it has spurred innovation.
We’re witnessing a wave of new and emerging brands that prioritise both taste and health. These brands are experimenting with natural sweeteners, alternative grains, and innovative flavour combinations to create snacks that are both indulgent and guilt-free. This is a win-win for consumers and retailers, as it caters to the growing demand for healthier options without sacrificing the fun and excitement of the sporting season. What now needs to be understood is which of the emerging brands are earning their space on the shelf and which ones don’t have longevity in a crowded marketplace. Again, reviewing performance is key to ensuring every product sweats its space as hard as possible.
In addition, digital marketing campaigns, including social media competitions, email newsletters, and targeted online ads, will help to engage customers and build anticipation: collaborating with local sports clubs or influencers within this field can further enhance the reach and effectiveness of these promotions. Retailers should also leverage the official branding and imagery of the sporting event to create visually appealing and authentic marketing materials that are most likely to appeal to the customer.
Overall, creating a point of difference is vital. The summer sporting season is more than just a sales opportunity; it’s a microcosm of the evolving retail landscape. By embracing creativity, understanding consumer behaviour, and leveraging data-driven insights, retailers can not only maximise sales in the short term but also build a sustainable strategy for long-term success. The future of retail lies in creating immersive experiences, championing challenger brands, and adapting to changing regulations. The retailers who embrace these trends now will be the ones who score in the years to come.
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