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August/September 2010

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inor League Base ball (MiLB) is an easily accessible source of entertainment for fans of America’s past time. According to Street and Smith’s Sports Business Daily, the minor leagues averaged 4,051 fans per game through July 13, 2008. Although that attendance was slightly off record-setting numbers in the three previous years, it still points to baseball’s popularity—and the need for merchandise to satisfy fans hungry for souvenirs of their favorite teams.

Ray Fieldhouse, assistant general manager of operations for the Midland Rock Hounds, an affiliate of the Oakland Athletics. Fieldhouse is among the buyers who participates in a heavily attended baseball tradeshow each December. Baseballs, bats, gloves, pennants and other items are a fun way for fans of the Corpus Christi Hooks to remember the season. Two shops serve fans of the team and also of the Round Rock Express. Both are affiliates of the Houston Astros.

At the plate or in the retail shop, timing is key. MiLB merchandise directors must get a jump-start on the season with pre-planning and early ordering. “We prepare for our upcoming season before our current season even ends,” says Brooke Milam, director of retail, Ryan Sanders Baseball of the Corpus Christi Hooks and the Round Rock Express, affiliates of the Houston Astros. Milam’s two stores combined for more than a million and a half in retail sales in 2007. She notes that in June of this year, she worked with a vendor to design a cap which she ordered in August to ensure delivery in early April, when the season gets underway. Orders for items produced overseas—especially caps—is critical. Donna Grunow, director of merchandising for the Lake Elsinore Storm, an affiliate of the San Diego Padres, says such orders have to be placed early to account for lost production time over the Chinese New Year holiday.

Jim Beck, director of merchandising for the Wilmington Blue Rocks, an affiliate of the Kansas City Royals, tracks customer purchases and uses the information as a guide for reordering.

The popularity of Storm merchandise presents an interesting conundrum for Grunow. More than 300 Little League teams across the nation use the Storm’s logo in their uniforms, T-shirts and novelties. “We’re in a unique situation because we sell so much on the Web and over the phone to teams across the nation. We pretty much have to keep the store full of inventory year round.”

Craig Katz, manager of Souvenir Sales and Service for the Toledo Mud Hens, an affiliate of the Detroit Tigers, is in a similar position. His off-season consists of marketing the Mud Hen’s two stores, The Swamp Shop and the Hen Hut, as well as the team’s web store. “Our physical stores are open all year round and, of course, so is the web site. At this time of year, I order cold weather gear and items for the radio to remind fans to do their holiday shopping with the Mud Hens.” For Katz and Grunow, and for other MiLB retailers, the offseason offers no downtime.

Choices about merchandise are not left to chance. Katz says he spends “a large amount of time” consulting reports generated from the store’s Point of Sale system throughout the season to see what is selling well. Jim Beck, director of merchandising for the Wilmington Blue Rocks, an affiliate of the Kansas City Royals, handles all of his ordering in the off-season and bases merchandise decisions on the previous season’s sales and leftover inventory. “Some products, like fitted hats,” he says, “are always used and I reorder them.” Other items, like T-shirts, Beck changes every year.

A customer takes a look at a pink women’s Corpus Christi Hooks shirt. Preplanning and early ordering are key retail strategies to prepare for the season. Corpus Christi Hooks apparel is well lit in this display. A new cap will debut in the team’s stores in early April 2009.

When it comes to identifying merchandise, retailers are limited to using licensed vendors approved by MiLB Beck explains, “If an item has our logo on it and we sell it in our stores, the league is pretty strict about who we can order from.” He has established relationships with approved vendors, who send him mockups of designs each year from which he chooses products.

There is some leeway for creativity, however, as noted by Donna Grunow, who says she scans malls and catalogs for clothing and novelty ideas, and borrows display formats from those sources as well. “We actually built on our California presence and created a beach-themed display in our store.” Brooke Milam pays close attention to the collegiate market, which she calls “fashion forward” and “a good way to predict what will sell in the minor league market.” Craig Katz does a “good amount” of research into fashion and sports trends, looking beyond baseball. “We talk to other clubs to see what unique products sold well for them.”

A Toledo Mud Hens store packed with customers. The team, an affiliate of the Detroit Tigers, has two year-round stores and a web shop.

The “destination point” for viewing MiLB merchandise is one of two baseball trade shows held annually in September and Decem - ber. The September show, the smaller of the two, features 40 to 50 vendors. The December event, known as the Baseball Trade Show, is held in conjunction with two and a half days of winter baseball meetings. Ray Fieldhouse, assistant general manager of operations for the Midland Rock Hounds, an affiliate of the Oakland Athletics, says, “Almost all the merchandise buyers for minor or major league teams are there.” Fieldhouse, whose store’s annual sales have increased every year since 2002 to $209,000 in 2007, calls the experience “neat.” Craig Katz says the December trade show is “educational, because in one exhibition hall, merchandise directors can see almost all of the licensed vendors and see what new and exciting products they have to offer. It’s great to compare products between the licensees to make an educated decision on which ones to purchase.”

Top: The shop for the Round Rock Express Baseball Club in Round Rock, Texas, even features an Animaland plush stuffing machine, which is shown in the rear of this photo.

Bottom: Shoppers have dozens of cap choices to choose from in this Round Rock Express Baseball Club store display.

Retailers use the trade show to view items predicted to be top sellers for the coming year. Brooke Milam says, “There is always one item I know will be a big hit each year. One example is the baseball bracelet by Gamewear. This upcoming season we are carrying reusable shopping bags, which are a very trendy item right now. I expect those to be a huge hit.”

In addition to planning, ordering and preparing for the arrival of new merchandise, MiLB retailers also need to unload old inventory. Strategies for clearing out inventory focus on the old stand-by, the sales rack. “We do a basic clearance table all year,” says Fieldhouse. “We have signage directing customers to a small area of the store where we keep last season’s items.” Donna Grunow handles her sale items in a similar fashion. Craig Katz’s clearance begins in mid-August, just after the conclusion of the season. “We tamper off on re-orders and push inventory we still have large quantities of,” he notes. “We will have multiple showings in our stores of items we want to push, which works well partially due to our store being open yearround and the popularity of our Internet store.”

Top: Children try on whimsical hats for size at the Toledo Mud Hens’ Swamp Shop. Radio and television ads in the off season remind fans to visit the team’s stores for holiday gifts.

Bottom: Shoppers have a broad choice of T-shirt colors and designs in this Toledo Mud Hens store display.

Again, timing is key. “We don’t want to put items on sale too early in the season, in case they can sell at their original retail price and so they won’t prevent other items from selling just because they have a lower price,” says Brooke Milam. Milam’s strategy for clearance focuses on advertising low selling items by distributing flyers at games. “Almost every time the sale item was announced, we saw an increase in our store traffic, and many of the items sold out that night.” Jim Beck notes, however, that, in some cases, items may be carried over from year to year. Beck explains that on one cold game day, he pulled some sweatshirts, once sluggish sellers, out of storage. The sweatshirts were an instant hit that night.

Beck’s move is reminiscent of a baseball team manager taking advantage of a scoring opportunity by substituting a pinch hitter in the bottom of the ninth. Ultimately, Minor League Baseball retail sales echoes the game it promotes. The keys to success: a well-thought out strategy, on target timing and knowledge of stats, whether it’s last season’s sales or up and coming hot sellers.










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