Introduction

The new rules in Major League Baseball aimed at shortening average game times can have several impacts on merchandising and concession sales at stadiums:  MLB revealed the pitch clocks have shaved an average of 26 minutes a game to 2 hours and 36 minutes.  The following are some of the ways that game day sales have been impacted.

Reduced sales volume: With shorter game times, fans will spend less time in the stadium, which could lead to fewer opportunities for them to purchase merchandise and concessions. This may result in a decrease in overall sales volume.

Shift in spending patterns: As fans adapt to the new game duration, they may alter their spending habits. For example, they might make quicker purchases before the game or during breaks, rather than casually browsing and buying items throughout the game. This could lead to increased sales in specific periods, such as pre-game or between innings.

Focus on efficiency:With a shift in buying habits, stadium operators should  increase the efficiency of their merchandising and concession operations. This could include streamlining product offerings or offering item of the day promotions, optimizing staffing, and adopting technology to speed up transactions. 

Changes in pricing: Stadiums may adjust their pricing strategies to compensate for the potential decrease in sales volume. This could involve offering discounts or promotions to encourage fans to spend more in a shorter time frame, or even increasing prices to maintain revenue levels.

Increased emphasis on fan experience: To keep fans engaged and spending during shorter games, stadiums may invest more in enhancing the overall fan experience. This could include offering unique or limited-edition merchandise, creating innovative food and beverage options, or providing interactive experiences that encourage fans to visit concession stands and merchandise outlets.

Off-stadium sales: Teams and stadiums might also increase their focus on online and off-stadium sales channels to offset potential losses from decreased in-stadium sales. This could involve improving their online stores, offering exclusive online deals, or partnering with local retailers for co-branded merchandise.

Ultimately, the impact of the new rules on merchandising and concession sales at a stadium will depend on how well teams and stadium operators adapt to the changes and implement strategies to maintain or increase sales in the new environment. Improving the fan experience with improved checkout efficiency, allowing fans to return to their seats will be paramount.

Tech for Faster Stadium Sales

To speed up transaction times in merchandising at stadiums and improve the overall fan experience, there are several technologies that can be adopted:

RFID technology: Integrating RFID tags into merchandise and using RFID scanners at the point of sale can expedite the checkout process by instantly updating inventory and allowing for quicker transactions.

Mobile ordering apps: Fans can use their smartphones to pre-order and pay for merchandise, allowing them to skip lines and simply pick up their items at designated locations or have them delivered to their seats.

Self-service kiosks: Equipped with touchscreens and payment processing systems, these kiosks enable fans to quickly place orders and pay for merchandise without waiting in line at traditional counters.

Automated inventory management: Smart inventory systems can help ensure merchandise is always in stock and readily available, reducing wait times for items to be retrieved from storage.

In-seat merchandise: Installing small vending machines or merchandise storage lockers near seating areas can allow fans to quickly purchase items without leaving their seats.

Digital wallets: By creating a digital wallet or a stadium-specific currency, fans can preload money onto their accounts for faster transactions at merchandise stands.

Queue management: Implementing queue management systems, like virtual queuing or line-monitoring apps, can help distribute customers evenly among available service points and reduce wait times. Giving fas access to approximate wait times at different stands can also help them plan their purchasing trips

Augmented reality (AR) shopping: AR can allow fans to virtually try on merchandise and make purchases from their seats, eliminating the need to visit a physical store or stand.

By adopting these technologies, stadiums can create a more efficient merchandising experience for fans, allowing them to spend less time waiting in line and more time enjoying the event.

Item of the Day

Determining the Item of the day sales can be complicated, ideally they should create an urgency for fans to buy a specific item without cannibalizing existing sales, you can follow a systematic approach that leverages data and considers various factors. Here’s an algorithm to help you identify the “Item of the Day” for each game:

Collect data: Gather historical sales data for all items in your inventory. Ideally, you should have data for the past few seasons to better understand sales trends and customer preferences. Also, take note of any special events or promotions that might have influenced sales.

Determine item popularity: Calculate the average sales per game for each item. Rank them according to their popularity. This will help you identify the items that are selling well and those that need a boost.

Identify slow-moving items: From the ranked list, identify items that have a low sales volume per game and could benefit from being the “Item of the Day.”

Factor in seasonality and trends: Consider the time of the year, special events, or other trends that might affect item popularity. For example, if your team has a rivalry game coming up, you might want to promote items related to that rivalry.

Create a non-repeating schedule: Once you have identified a pool of items that can be featured as the “Item of the Day,” create a schedule for the 81 home games that ensures no item is repeated.

Set a discount strategy: Determine the discount percentage or pricing strategy for each “Item of the Day.” You might want to offer a higher discount for slow-moving items or lower discounts for more popular items to avoid cannibalizing sales.

Monitor and adjust: Track the sales performance of the “Item of the Day” and compare it with historical sales data. If you notice any negative impact on overall sales, adjust your strategy accordingly.

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Benefits of Inventory Cycle Counts

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Limit the amount of disruption within your warehouse

Cycle counts can be done during down-time and do not necessitate closing or disrupting regular business. As cycle counts are for smaller subsets of inventory, use those quiet times to tackle the count (early one morning per week or if you never see a living soul in the shop between 1 pm and 3 pm). In addition, problems and discrepancies are more easily spotted and corrected. This saves you labor costs and hours of time.

 

Increase confidence in buying decisions

When you implement ongoing cycle counts, you’re forced to continuously assess your inventory. By having smaller check-ins, focusing on a subset of inventory, your buying decisions are more informed and targeted. You can focus on just one area of your business, so use the opportunity to not only count, but make decisions about that subset of your business.

 

Lessen discrepancies

By shortening the time between counts, you are decreasing the amount of time an error could have been made. It will  also help you identify  loss patterns and even have a more precise idea of when a theft occurred.

 

Maintain focus and keep inventory as a priority

Inventory can often be the most frustrating part of owning a retail business. Implementing smaller cycle counts allows your entire team to see your stock accuracy as a vital part of your business. Now you can transfer merchandise between stores to optimizing the inventory mix at each store, having the stock available for sales of  exactly what the customers are looking for. Employees and customers will feel more confident about the business decisions you’re making.

 

Operational efficiency

Real time accurate visibility into your inventory allows for greater productivity. For example, if a customer wants a particular item, you can quickly and easily locate it, without having to purchase another item and wasting your customer’s time and losing their confidence.

Understanding product movement can also enhance your sales. For example, if a product line performs better than expected, you can expand your supply of those items.

 

It gives you an excuse to clean up

When you’re rifling through your merchandise more often, it provides a perfect opportunity to dust things off and keep your displays sharp.

 

Implement Cycle Counts

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What is a cycle counting?

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Inventory cycle counting is the process of counting physical inventory in small subsets, in a specific location. It is an ongoing process of validating the accuracy of inventory as you move through your inventory allowing you to focus on a subset of inventory.

Cycle counts are less disruptive to daily operations and can be tailored to focus on items with higher value, higher movement volume, or that are critical to business processes. This can occur on a daily or weekly basis, depending on your preferences. Cycle counting ensures that every item in your inventory is counted at least several times a year.

Inventory Manager can help companies easily manage their inventory audit process by simplifying the way inventory is counted.  If the inventory data is updated in smaller doses on a regular basis, there is no need for lengthy physical counts. Companies who perform cycle counts rarely need to shut down to perform physical counts. It’s simply too expensive to shut down for the day. If cycle counts are regularly performed, inventory numbers will always reflect well managed data, allowing for accurate inventory decisions. More on benefits of Cycle Counts here.

So ditch the annual inventory count and opt for something a little less taxing – ongoing cycle counts.

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