Impressions - Sports Fan Retailer - June 2015 - 25

hile the licensed sports
product industry
has been shown
to be strong and
significant in terms of sales and appeal,
the element of fickleness produces an
inherent double-edged sword for retailers who otherwise can thrive off catering to fans.
The hot-and-cold nature of fans' relationships with their teams is ubiquitous at
the retail level. When a specific player or
team is doing well, anything and everything embellished with his name or logo
sells - and quickly. Team losses or slumping player performances, however, mean
retail sales can suffer equally as swiftly.
But what could be at the peak of the
frustration meter is when a prominent
and popular player unexpectedly gets
traded, benched, cut, waived, decides to
retire, or is suspended or arrested for an
off-the-field transgression. Such occurrences usually mean retailers may be
left with excess and overpriced product
because consumer demand evaporates.
What's a retailer to do in these situations? There are multiple solutions, including some creativity, common sense
and preventive inventory management
- among other things - to help lessen
the impact to your bottom line.
GET CREATIVE
Many industry veterans say it doesn't
have to be a doom-and-gloom scenario
when a player experiences a "professional transition." Still, there are caveats that
can increase a retailer's chances of selling product associated with that player.
"In the cases of a player getting traded,
released or retiring earlier than expected,
there still may be a market for fans who
want to have a jersey of a player from
that team, depending on his popularity,"
says Marty Maciaszek, director of communications, National Sporting Goods
Association. "For example, when a Hall
of Fame player, such as when [former
Detroit Lions running back] Barry Sanders retired early, or if a popular player is
traded, a retailer could market those jerSportsFan Retailer

seys or other products as memorabilia or
nostalgia pieces that a fan would really
want to have."
Creativity in merchandising and selling
philosophy also could help move otherwise undesirable products.
"Since it's true that all players will eventually stop playing for any specific team,
all NBA, NFL, NHL and MLB jersey
purchases can, at times, be marketed
more as a team purchase and not as an
individual player purchase," says Cameron Jacobs, spokesman for the Sports &
Fitness Industry Association. "After all,
teams, and not individual players, win
games and championships. Plus, every
jersey eventually falls into the category
of being classified as a 'nostalgia' or a
'throwback' item. And, really, at the end
of the day, the name on the front of the
jersey is what matters the most."
While all players eventually have to call
it quits, it can be more frustrating when
off-the-field troubles rear their ugly heads,
prompting unforeseen consequences that
can affect merchandise sales.
"Issues such as those involving [former
Baltimore Ravens running back] Ray
Rice, [Minnesota Vikings running back]
Adrian Peterson or [New York Yankees
third baseman] Alex Rodriguez have
a much different set of circumstances
for a retailer," Maciaszek says. "There is
the possibility of negative PR for retailers continuing to sell products with the
names or likenesses of players in trouble.
It would be a good idea for retailers to
have a plan in place for instances such as
these. Allowing fans to exchange a jersey
of a player in serious trouble for a jersey
of another player is certainly a good PR
move. But I believe a policy like this would
be used only in extreme circumstances,
especially with the nature of professional
players changing teams so often."
BUYER BEWARE
Though this industry can be lucrative
for retailers - especially after teams win
championships and players garner individual honors - it's always good to proceed cautiously when placing orders with
suppliers. The "better-safe-than-sorry"

AN
OVERSTOCK
CHEAT
SHEET
Here's a quick-reference guide to
minimizing - and even preventing
- the effects of excess inventory:
■ Look for opportunities to conduct merchandising in ways that
promote items as memorabilia
or nostalgic pieces.
■ Use caution when ordering from
suppliers. Start with smaller
quantities, then order more later.
■ Order from suppliers with domestic production capabilities.
This can shorten lead times
and provide greater inventory
flexibility.
■ Pay attention to athletes' contracts and playing careers, and
reduce quantities for veteran
players.
■ Add novelty items to your product mix that aren't affiliated with
specific players.
■ Include products that appeal
to fast-growing demographics,
such as women and children.
■ If located in a collegiate market,
diversify your product mix to appeal to fans who have more of a
team focus.
■ Repurpose products - such
as caps - and sell where
appropriate.

approach when it comes to inventory
quantity certainly applies.
"I think all of these aspects, including
underperforming retail sales, emphasize the importance of proper inventory management, especially when it
comes to licensed products of professional athletes," Maciaszek says. "Everything can change very quickly in
professional sports, so it's best to order
June 2015 25

Impressions - Sports Fan Retailer - June 2015

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