Why the World Cup is a make or break moment for retail this summer

0:09Anna Hensel:Hello and welcome to the Modern Retail Podcast, a show about the ways the retail industry is changing and modernizing. I am senior reporter Gabriela Barkho. First off, happy World Cup month to all. This week, we're celebrating the start of the event by talking about how brands and retailers are getting in on the action as the tournament comes to North America. So later on in the episode, I talked to Alyssa Grigg, the Senior Director of Marketing and Communications for Evergreen Goodwill of Northwest Washington. Seattle is the home of several World Cup matches this tournament, as well as the largest Goodwill in America.

0:52Anna Hensel:And so we talked about what they're doing on match days and all the activations they have in store to really get in on the trend of thrifting as tourism, as well as all things soccer, of course. But first, I'm joined by our executive editor, Anna Hensel. Anna, welcome back to the show. Hi.

1:12Gabriela Barkho:Yes, I'm so excited to be here and to talk about the World Cup. Are you a soccer fan, Gabby?

1:19Anna Hensel:Yes, I am. I follow it pretty closely. I am an Arsenal fan. Insert views or cheers here for everyone. Yeah. So, you know, the last time they won, I was 14. I don't want to do the math on that. So it's been an exciting couple of weeks for me. But the World Cup is always fun because I feel like, you know, I guess I'm feeling patriotic against all odds this summer. And so it's kind of the one time every four years that everyone, you know, checks in on what's going on in this space.

1:52Gabriela Barkho:Yeah, I'm just I'm a big fan of global sporting events. Like I love seeing, you know, what random team makes a Cinderella run and cheering for them. So I'm I'm excited for I think it's 39 days of soccer.

2:07Anna Hensel:It is 39. So yeah, this is a good time to mention for those unfamiliar, like this is literally the longest and biggest World Cup in history in the sense that it's got the most matches ever. And it's about five weeks long, like you said, which also, surprise, surprise, makes it like primed for marketing moments, of course, as the brands will tell you, which is what we're going to be talking about today. But yeah, there's a lot of ad dollars. FIFA is very protective of its brand. So if you want to be an official sponsor or partner, you do have to pay up a lot of money. But brands are getting very creative around that.

2:48Anna Hensel:We'll talk about that a little bit later. But yeah, what were some stats that you found really interesting around just the sheer amount of revenue and dollars being poured into these five weeks? Yeah.

3:01Gabriela Barkho:So I feel like the World Cup, it's been talked about so much this year. you have the lead up to the big event. But as I was researching for this segment and just looking at some numbers, it really reminded me how big of a deal this is compared to past World Cups. So again, this is the biggest tournament ever. FIFA has expanded the number of competing teams from 32 to 48. It features 104 matches, which is an increase of about 40 games compared to previous tournaments. and it's being hosted across 16 cities, across three nations, the US, Canada, and Mexico. And so when you've been talking to people in retail and advertising about the World Cup, everybody compares it to, this is like 16 Super Bowls, which is pretty crazy because obviously Super Bowl is a huge economic cultural moment and then you times this by like 16.

4:02Gabriela Barkho:And it also comes at a precarious economic moment. You know, there's a lot of fears right now around will consumers cut back spending if gas prices and other prices continue to rise? And I also think just why there's so much interest in this World Cup in particular is there are questions about how much fans will show out given the like astronomical prices surrounding this. Yeah. So with a lot of matches being in the U.S., a lot of tickets are more expensive. They're subject to the unique like resale economics of the U.S. One stat I saw is that when tickets initially went on sale. So like the most expensive ticket for the most expensive match, FIFA initially sold that at$6 ,730.

4:55Gabriela Barkho:And the most expensive ticket for the 2022 World Cup, and again, this is the price that FIFA sold it at, that was$1 ,600. So prices are so much more expensive. And then when you look at, you know, the resale market, I think you have some tickets going for like$10 ,000 plus. So, you know, there's a lot of excitement around this. But like, will people show up to the level that some of these expensive sponsorships or investments are worth it? Yes.

5:30Anna Hensel:So it is$3 billion in sponsor revenue. And, you know, this is obviously we're including like Coca-Cola, Adidas, like all of the big companies that are officially sponsoring the tournament. But, you know, you don't have to be an official sponsor with millions of dollars to participate as this week's editorial series on modern retail showed. Myself and a few of my colleagues on our team wrote stories about how retailers and brands of all sizes are leveraging the biggest ever FIFA World Cup this summer. So, Ana, yeah, I wanted to just ask you about what were some of your favorite instances of how retailers are just trying to get in on this.

6:13Anna Hensel:Maybe we should start with malls because that one we love malls here at modern retail. So it's always fun to see how they're constantly trying to reinvent themselves in this case, trying to be sort of like fan hubs.

6:27Gabriela Barkho:Yeah, what I also think is so interesting about this World Cup is seeing all the different players trying to get in on a slice of the action. Because again, I think, you know, this is going to create like billions in economic activity. So you have local tourism boards just looking at little things they can do. I think in Philadelphia, they extended the hours that the bars closed. So bars closed at like 4 a.m. during the World Cup. And so one kind of sector that I feel like is really trying to get a slice of the World Cup action is malls. You know, it's been a tough few years, few decades for malls.

7:11Gabriela Barkho:Um, although recent data from place or AI shows that traffic to malls is stabilizing or even increasing in some cases. And so I think a lot of malls are looking at this as an opportunity to kind of like reinsert themselves into the cultural conversation and like introduce themselves to global tourists for the first time, of course, and like remind people that we are a premier tourist destination in whatever location. So American Dream, which is located in New Jersey, they are hosting a 39-day fan fest. They're doing activations for like all 39 days. They're doing some events with local sports teams like the Giants and the Jets.

8:01Gabriela Barkho:And I think for American Dream, it's all about like, you know, they had a very delayed opening. I think this is about re-reminding people that like we are a premier tourist destination in the New York, New Jersey area. And then other malls, I think, took the approach of kind of looking at like what part of our portfolio could this really provide a benefit to? So there's a mall in Miami that one of our senior reporter, Julia Waldo, spoke with. And what was interesting is like, you know, of course, it gets very hot and humid in Miami in the summer. this mall they said their um their restaurants kind of suffer a lot because of that like summer is a tough time for restaurants there so they're doing a dining passport where you know if you visit x number of restaurants during the world cup i think you get like coupons or access to some perks so it's just really interesting seeing the approach that um some of these companies are taking around like what part of our portfolio can we boost during the world cup and then another area that we looked at is how this is impacting retail media networks.

9:09Gabriela Barkho:So a lot of retailers have launched advertising businesses over the past few years. And if you look at like a grocery store, there's kind of the obvious use case of someone might look in that grocery shopping app and look for, you know, a certain type of creamer. And if you sell that creamer, you can run an ad and target at that customer, that's like lower funnel ad spend. But what a lot of these retail media networks are trying to prove is that like our advertising isn't just for that lower funnel spend that like we can be part of cultural conversations, too. So there again, Walmart, I believe, is teaming up with Coca-Cola to do some events around like game day culture.

9:55Gabriela Barkho:I know Best Buy is doing some World Cup themed events at its stores. It did sweepstakes. It worked with Lenovo on experiential spaces in Best Buy stores across the U.S. and in Canada. So again, it's just really interesting to see how all of these different players are showing up.

10:16Anna Hensel:I myself wrote about sort of like, quote unquote, unofficial, you know, World Cup campaigns. And I spoke to some brands about how they're, you know, catching soccer fever this summer by specifically not calling it FIFA World Cup, of course. But, you know, they're coming up with limited edition products or they're hosting their own viewing parties. Olipop, for example, is going to be hosting parties and they have like a soda bar and, you know, patches for jerseys and really trying to get the fans in on it on match days. This is an example of what we call proximity marketing, right? So Ana, what are your thoughts on this?

11:00Anna Hensel:Because it's a topic we've written a lot about, and it kind of takes inspiration of what brands do for the Super Bowl, usually, where you can call it the big game if you're not an official partner of the NFL. But yeah, so in this case, you can't say FIFA, but you can say like Summer of Soccer, I think some brands are calling it. And then that way the customer kind of puts two and two together, obviously.

11:26Gabriela Barkho:Yeah, you and I both write a lot about startups, I feel like. And if you're a startup, you don't have, you know, millions to spend on an advertisement. So you really have to get scrappy with how you're involved in these big cultural moments. And again, it's just kind of being precise about the language you use. You know, if you aren't a sponsor, you can't say like World Cup. You can't use the hashtag World Cup, but you can say, you know, we're having a watch party to celebrate the summer of soccer or something like that. But yeah, I just think what is so interesting, again, about the World Cup is like, I keep coming back to this idea of like, how do you show up in big cultural moments?

12:09Gabriela Barkho:but I think that is what truly separates like the brands that continue to resonate and break through during tough economic times are the ones who show up in like are just like show up in big moments of culture and like smart ways and like people are constantly thinking and talking about them and the World Cup is an important time to prove that is there a favorite way that you've seen a brand show up, Gabby, or like a really creative campaign?

12:39Anna Hensel:Yeah, so I mentioned viewing parties. I feel like those make the most sense because especially in big cities, like here in New York, obviously MetLife, which obviously is located right next to American Dream, which is why that's like a crazy hub for fans. But the rest of the city, you know, traffic is such a big topic of conversation. Restaurants, businesses want that traffic. So I talked to Mack Weldon, for example, their VP of brand, Dan Ansel, told me that they're hosting viewing parties in Brooklyn, for example, including the USA versus Paraguay, which has happened, if you're listening to this, from the future already on Friday the 12th.

13:25Anna Hensel:But they're going to test one game and see what happens. But they're actually a longtime sponsor of the Footy League, which is like an amateur league here in New York. And so they're inviting their members to a bar and doing giveaways. And yeah, just having, you know, an actual viewing party of the match. And that way you can kind of it's like a community building event at the same time. And then I think on the food side, for example, like Prada Manger is doing localized discounting. So in New York and New Jersey, on match days, customers are going to get 50 % off any matcha drink. Matcha obviously being very trendy.

14:02Anna Hensel:So yeah, it's going to be available in all the locations in this area. And so it's like, what better way to drive traffic on those days, right, than a discount? I feel like that's like the tried and true way. So those are just some of the examples I was thinking about.

14:19Gabriela Barkho:Yeah, absolutely. I think I'm most interested in kind of how the local small businesses, the restaurants, the bars, creative ways that they are coming together. Like even in Minneapolis, where I live, obviously we aren't hosting any World Cup matches. But of course, the soccer bars are doing watch parties. They're bringing in food trucks. The city is shutting down streets in certain areas, really encouraging people to come together. And like, I do think that is what is the most powerful. People remember those moments where they're together in person. Right. And I wanted to shout out this quote from Jessica Ramirez, who's a favorite modern retail source of ours.

15:01Gabriela Barkho:But she had a newsletter looking at the different World Cup activations. And she really kind of honed in on this idea of localization. and like that kind of being, I think that will be a key driver of success for a lot of brands. And just this quote she had is, what I kept coming back to is this, local economies are the bridge. They're the engine that gets people through while the bigger picture finds its new normal. And I think, again, that gets back to the idea, there's a lot of questions about how much will people show up for this and spend while the economy is kind of in flux right now. and local activity is going to be kind of a real key sign of that.

15:43Gabriela Barkho:But on that note, Gabby, I wanted to ask you about the conversation you had with Evergreen Goodwill. So first of all, like why, I know we'll get into in this segment, but like why is Goodwill doing stuff for the World Cup?

15:56Anna Hensel:Yeah, I definitely think localized marketing is going to be on display this summer. So when I talked to Evergreen Goodwill and Alyssa, their director of marketing and comps. So this is what it is, is that the biggest Goodwill in the world, it happens to be in Seattle. And it's right near the stadium where six matches are going to be played this summer. And so they were just thinking, you know, thrifting is so big, especially when it comes to things like soccer jerseys and like vintage merch that a lot of fans look for. And then that's also overlapping a lot with other trends, which is what they're seeing is that Gen Z and younger shoppers really love thrifting as like a tourism activity.

16:45Anna Hensel:So that's something they're seeing in their stores where they're coming in, especially, you know, people overseas who don't have Goodwills, but they're seeing it on social media. Like, here's all my finds that I found. That is something they're trying to capture. So the foot traffic that is happening near that area is something they really want to capitalize on, especially because there's going to be 750 ,000 visitors expected in the city for this World Cup. And so they're doing things like screen printing and DJ days on match days. And yeah, it's just going to be literally blocks away from where everything is being played.

17:25Anna Hensel:So this is obviously a very like thrifty example of a retailer doing this because they are very mission driven and a nonprofit. Obviously, they're not Walmart or Target. But yeah, we had a really great conversation on how they leaned into their, you know, like immigrant employees, for example, to help source or go through a lot of those donations and find all those gems of jerseys that people will hopefully buy.

17:52Gabriela Barkho:Yeah, I see what you did with your insertion of thrifty there. And I can't wait to listen to the segment.

17:59Anna Hensel:Thank you. Yeah. Thank you again for joining me, Anna. And I'm sure we'll talk about this for the rest of summer. OK, and now here is my conversation with Alyssa Grigg, the Senior Director of Marketing Communications for Evergreen Goodwill of Northwest Washington.

18:26Anna Hensel:Alyssa, welcome to the show.

18:29Gabriela Barkho:Thanks so much. Happy to be here.

18:31Anna Hensel:Yeah, so I'm excited. We can get right into it about everything that your specific network of Goodwill is doing for this World Cup, given that your store is right smack in the middle of all of the excitement with six World Cup matches being played in Seattle this summer. So yeah, tell us a little bit about the store and then we'll get into this Jersey thrifting campaign or activation that you have going on pretty much the entirety of the tournament.

19:05Gabriela Barkho:Yeah, absolutely. So yeah, Evergreen Goodwill, our territory spans five counties in Northwest Washington. So if folks don't know, we are part of a broader Goodwill network. Each Goodwill operates independently and that's by design. So the money generated from the stores directly benefit the local community. So our territory includes Seattle, which is home to our flagship store, the largest Goodwill in the world. It is 70 ,000 square feet. So this thrift store is massive. And it's just a couple blocks away from the stadium that's going to be hosting these games. So obviously a big retail moment and opportunity for us.

19:49Gabriela Barkho:Thrifting has turned into, especially with younger people, this sort of like destination activity. So we've seen folks who will travel to thrift, especially for the largest goodwill in the whole world. And so we're sort of leaning into this opportunity as folks are visiting Seattle to position it as a destination and doing some fun activations in the store around that as well.

20:14Anna Hensel:Yeah, so this is where this soccer thrifting campaign, right, on site is coming in, which is that you want to really capture this young tourist heavy audience that's coming into the city and encouraging them to shop. But obviously, like, it sounds like a really big store. It's very overwhelming. So let's talk a little bit about the curation and how you sourced and how you plan to merchandise some of these products so that people can pop in, you know, in between whatever they are doing around the activities and hopefully find the jersey they're looking for or anything else, obviously, that they might be wanting to thrift.

20:55Gabriela Barkho:Yeah. So over the last few weeks, our team has been sorting through the hundreds of thousands of donations that we receive to try and find vintage soccer jerseys, secondhand merch, and curate a collection of items for folks that are visiting Seattle. We're leaning into what makes Goodwill unique and true to us, which is the secondhand items, the upcycling. And so we're hoping to invite folks in who aren't just looking for a logo that's slapped on something, that's really trying to find something that they can upcycle while celebrating these games. The other thing that we're doing is that on June 19th, Seattle is hosting the U.S.

21:38Gabriela Barkho:vs. Australia game, which is going to be huge. And following that match, we're inviting customers to visit our flagship store where we will have live game day screen printing. So on-site screen printing, folks can purchase a secondhand shirt. So we will have a ton of blank shirts available and blank tote bags that they can get screen printed on-site. We've partnered with a local artist here from the Seattle community to design something that celebrates soccer, celebrates Seattle, and really will give customers a unique, truly one-of-a-kind souvenir that they can take home. It is celebrating the local community.