Wimbledon and summer of sport: Net profit

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The nation’s eagerly awaited summer of sport is almost here – and retailers must be ready to maximise sales as shoppers stock up to enjoy the action in the months ahead.

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Wimbledon is one of the stars of the season and will return this year after being cancelled in 2020 because of Covid-19. The event takes place between 28 June and 11 July, although it seems likely there will be reduced crowds watching the event because of the pandemic.

Away from SW19, another major global event is the Olympics, which is due to be staged a year late from 23 July to 8 August in Tokyo (although it may yet be hit by the pandemic). Then there are domestic events such as racing’s Derby (5 June) when thousands of race-goers will (hopefully) flock to Epsom to watch one of the world’s greatest sporting events, and the FA Cup Final in mid-May.

Live action
With sports fans having missed out on live action last summer because of the lockdown, there is an even greater appetite to be involved in watching this time around, which should be good news for convenience operators. This seasonal line-up presents a host of sales opportunities for retailers who are well placed to cater for a spike in demand for products across a range of categories. When a sporting event combines with good weather, it creates a double whammy as products such as alcohol, soft drinks and ice-cream fly out the door.

Suppliers are aware the lockdown has pushed shoppers back to convenience outlets and warn that retailers have to respond to changing buying habits in order to maximise the seasonal sales opportunity. Norbert Jozsa, head of category and insight at Accolade Wines, says: “The convenience sector has seen a huge surge in sales throughout the past year and it is clear this is a huge opportunity for retailers to make the most of, particularly in the lead-up to key sporting events this summer. The average basket spend for a wine shopper is £12.44, so there is a big opportunity to increase spend with a well-functioning wine category.

Hard seltzers

“For instance, 2020’s boom in the trend for seltzers offers a lighter alternative to traditional drinks such as beer or wine. Blurring alcohol categories are becoming more popular and hard seltzers will   likely witness the highest growth rate in the ready-to-drink category. As a result, retailers should look to target convenience shoppers with these on-the-go formats. This year’s summer of sport will offer the ideal social occasion, with single-serve and can formats continuing to grow in popularity.”

Hannah Dawson, head of category development for the off-trade at Diageo, says: “Consumers spent a considerable amount of time at home during 2020 and we have seen a step-change in behaviour because of this.With sporting events set to make a comeback this summer, retailers can inspire and drive sales by stocking drinks synonymous with these occasions.

Mixed drinks

“For example, we know gin is a key player and is driving the biggest growth in spirits, with flavoured variants making up 46% of total value share. During the warmer parts of the year, people opt for mixed drinks such as gin and tonic and spritz serves. With this in mind, we recommend stocking a range of spirits whereby retailers can help customers create high-quality moments during key summer sporting occasions.”

Jessica Markowski, convenience sales director at Budweiser Brewing Group, says: “Televised sport is a vital mobiliser for sales. Outlets should therefore ensure they are not just stocking familiar brands, but also that they are using in-store displays to appeal to first-time buyers. Independents should consider branded displays with clear links to the tournament to boost customer interest.” Stella Artois is the official beer of the tennis tournament and the company is bringing back its themed Wimbledon packaging on cans and bottles to help retailers boost sales during the two-week event.

Lower-sugar

Matt Gouldsmith, channel director, wholesale, Suntory Beverage & Food, says: “This year, retailers are better prepared to tackle the challenges brought on by lockdown. They should pay close attention to the needs of their customers and adapt their soft drinks ranges accordingly as guidelines evolve.

“Given the trends of recent months, we’ve seen an increase in ‘drink-later’ formats. We can expect sales of larger formats and multi-packs to be popular this summer too. We have seen a long-term trend towards drinks with lower sugar, and retailers should ensure chillers are stocked up on lower-sugar soft drinks such as Ribena Light and Lucozade Zero.”

​Paul Baker, founder of bakery company St Pierre Groupe, says: “The retail potential offered by Wimbledon this year to drive footfall and revenue should not be underestimated. At-home eating occasions that focus on relaxing and enjoying quality time are growing faster than any other at-home occasion.”

Instant barbecues

Of course, summer is also the key time for outdoor socialising – which is often combined with watching a sporting event on TV – and retailers should be ready to cater for these occasions. Caroline Morris, head of sales at barbecue brand Bar-Be-Quick, says: “The anticipation for Wimbledon this year is palpable, and we expect to see a definite upturn in sales.

Barbecues are a typically British affair and lend themselves to viewing events like Wimbledon. For us, it will always be the instant barbecue that is the real winner on these occasions. Wimbledon is always an occasion to celebrate in the UK – particularly if the weather is fair.”

By Martin Geary