It may be still a few months away, but we’re already thinking about the upcoming UEFA EURO’s 2024 and ‘football economics.’
Although many sports retailers have the benefit of increased sales through officially licensed merchandise and other sportswear offerings, big-name supermarkets and convenience stores also have the potential to ‘piggyback’ off this prestigious event to help increase their brand awareness and sales. As Tactical Solutions specialises in providing our clients with innovative solutions to help them sell more, we wanted to check out the data to find out more. Here’s our findings…
What economic impact can we expect to see?
Kicking off in Germany on 14th June, this highly anticipated event follows a structure reminiscent of the World Cup, comprising six groups consisting of four teams each. These groups will compete in a round-robin format, with the top two teams from each group, along with the four best-performing third-placed teams, advancing to the knockout phase.
The Euros are known to create a positive impact in terms of economic growth for the UK as it is an event that encourages people to come together to support their home nation/s. The event even encourages shoppers to get involved, whether they are football fans or not. From spectators watching the matches at home, to those out in hospitality venues, food and drink retailers have the potential to seriously benefit.
Let’s crunch the numbers
For the 2020 Euros, it was reported that there was a 4.2% surge in food sales driven by the extra spending ahead of the games.
Adding to this, in 2022 it was predicted that the Women’s Euros would encourage a consumer spend of £761.2m, with shoppers buying food and drink for football parties, BBQ’s and other gatherings.
Snack sales set to increase
Adding to this, insights discovered from our Business Insights team discovered that during the Quarter World Cup in 2022, snack sales seemed to increase as England progressed through the group stages of the Qatar World Cup. In their opening group match where they were playing Iran (21/11/2022), weekly sales were £3,845,717.80, with 2,312,728 units sold. During their third group game versus Wales (29/11/2022), weekly sales were £4,608,547.57, with 2,762,781 units sold. This data was taken from Top 4 retailers in the week of each group game.
Beer gets boosted through group games
It’s worth noting that as England progressed through the group stages, sales of beer also increased. This could suggest more people are opting to stay away from hospitality venues and watch from home. Highest beer sales were discovered during their third group game versus Wales (29/11/2022), where weekly sales were £983,888.58, with 151,161 units sold.
The lowest sales value game for England’s group game fixtures was their first group game versus Iran (21/11/2022), where weekly sales were £912,974.51, with 139,547 units being sold, possibly due to the earlier kick off time.
Snack sales set to increase
Additionally for the England Vs Iran game, England’s early kick-offs saw pizza sales soar to over £10.5M. Their 1pm kick-off produced an average sale value of £10,604,048.91, with an average of 4,182,700 units being sold.
Euro-dedicated brand activations
Ahead of the event, we expect to see a rise in Euro-dedicated brand activations, encouraging shoppers to show their support and join in the action by buying into certain products. This will be a crucial summer for many brands with the Euros taking place, closely followed by the Olympics which occurs from the 26th July. Retailers and brands alike will be sure to establish a seamless plan to ensure a profitable summer.
Here at Tactical, we work with some amazing brands who have already laid out promotional plans in readiness to maximise this perfect storm of major sporting events.
Our thoughts on Euro brand activations
We chat with Senior Business Unit Controller, Lance Preston who gives his perspective on how he predicts brands will be approaching this year’s Euros in terms of campaigns, promotions and more…
Q: How do you think brands will be approaching this year’s Euros?
A: Ahead of the Euros, brands will be vying for attention from potential shoppers. Because of this, there will be a focus on establishing competitive promotions and securing the best deals for customers. It’s all about boosting sales, getting the brand out there, staying ahead, and keeping those loyal customers happy.
Adding to this, it will be vital for brands to ensure that they have the right SKUs/listings in-store so that they can maximise their sales ahead of a feel-good summer. Meeting consumer needs is essential. We’ve seen how the weather can help to support sales as this is usually the peak time for BBQ’s and parties. If brands can capitalise on this with the right product offering, this will definitely help to leverage sales.
In terms of incorporating tech and digital elements, brands will focus on implementing innovative and interactive digital experiences to connect with fans. This has the potential to create memorable experiences for shoppers that will keep them engaged and immersed into the brand. Think AI, AR and QR Codes.
Social responsibility
This is also the perfect time for brands to leverage their social responsibility efforts. Expect to see an emphasis on socially responsible initiatives to align with public sentiment to secure shopper buy-in. This could include environmental, diversity & inclusion and well-being initiatives. Additionally, expect to see more personalised campaigns with brands tailoring campaigns to resonate with diverse audience segments.
Last year Unilever established their partnership with EURO’s 2024, from this, we expect to see some activations from sponsor brands Hellmann’s, Knorr, Dove and Sure. So far, they have announced activity which includes ticket giveaways and special experiences for football fans.
Adding to this, for the UEFA Women’s EURO 2022, key partner Hisense created a cashback promotion initiative for customers which appealed to UK households looking for high-quality, yet affordable TVs and appliances. They boosted brand awareness and customer engagement through engaging visuals and branded pre-paid virtual Mastercards and custom chatbots.
Q: What have we learned from retail sales and brands from previous competitions?
A: When we look back on previous years for sporting events there are always winners and losers. We’re expecting to see a majority of brands ‘piggybacking’ off major sponsors of the event. When it comes down to it, the best-laid plans can be impacted if a Home Nation gets knocked out early. The feel-good factor dissipates quickly, leaving sales floundering. Brands will now be examining past obstacles faced by themselves and successful brands, looking to design strategies to overcome problems and challenges. With this, there will of course be a focus on researching impactful and memorable brand campaigns from previous major sporting events and how they worked.
Q: What are you expecting from Retailers?
A: Our favourite retailers will be planning to capitalise on the increased consumer demand during the Euros with higher footfall and spending. Many retailers will be keen to win the battle for the summer and will ensure sales are maximised, working closely with key brands to ensure delivery.
Data Insights into consumer spending patterns and preferences will help brands during major sporting events so campaigns will be targeted to specific demographics. Adding to this, the use of loyalty schemes will also be paramount in retaining customer loyalty, particularly during this period.
Q: Where do you think the challenges lie?
A: There are a few challenges that could be presented for brands at this time. First off, we’ve got the supply chain strain. Brands must be on their toes, predicting and tackling any potential hiccups in the pipeline caused by skyrocketing demand. This is vital, especially when you’ve got the risk of unpredictable weather or unexpected team eliminations throwing a wrench in the works.
Then there’s the whole competitive pricing dance. With everyone gunning for the top spot, brands must get creative with their pricing strategies to stay in the game. To gain shopper attention, brands will need to focus on implementing strategies for maintaining competitive pricing amidst intense market competition as well as expanding their product offerings to meet the diverse demands of consumers during the Euros.
It will also be important for brands to enhance customer service to meet the surge in consumer inquiries and orders. With orders flying in left and right, brands need to step up their customer service game to handle all those inquiries and keep folks happy.
Maximising brand visibility is also vital. Strategically leveraging advertising and promotional campaigns for maximum impact will help to put brands in the spotlight, if done successfully. Because of this, brands will need to maximise revenue as the best-laid plans will falter if the desired product isn’t available for customers to purchase.
Q: How can Tactical Solutions support brands ahead of the Summer of Sport?
A: As a market leading field marketing agency, we are in a prime position to support brands in-store by utilising our award-winning, fully trained In store sales, flex and convenience sales teams can ensure all plans come to fruition. We can ensure full product availability and compliance of products on the shelf or promotional spaces (along with driving incremental displays), using our bespoke data tool, Reapp, in-store. With access to the sale of every SKU in every store across the UK, you can rest assured that we will maximise sales opportunities during this lucrative time.
Q: Finally, who are you predicting to win the tournament?
Well, I am personally hoping England can go one better than the last Euro’s and win the final in Munich.
If you’re a brand who’s looking to shoot and score in the game of retail, talk to us today and learn how you can integrate data analytics into your business! With us on your team, it won’t just be your customers that are cheering.
