Editor’s note: This story is revised from the print edition.
Super centers are showing the most sales growth for collegiate licensed product and Costco is looking to build on that with a Father’s Day program in 83 stores across the country.
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A Costco Father’s Day display features college merchandise from Knights Apparel.
Photo by: COLLEGIATE LICENSING CO.
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Costco began ramping up its collegiate sales last fall with a Back to School program that marked the mass retailer’s first efforts in a deal with Atlanta-based Collegiate Licensing Co., the licensing arm of IMG College.
The program went well enough that Costco returned for the holidays and now with a Father’s Day promotion that will run through this week.
Knights Apparel is the exclusive manufacturer for all of the merchandise being sold at Costco, which includes T-shirts and polo shirts representing more than 20 schools.
“There’s so much hype for Back to School, but now we’re seeing that gifting is a good business outside of that period and the holidays,” said Nicole Armentrout, CLC’s senior director of brand marketing. “We’re going to continue looking for other opportunities in addition to Father’s Day, like Mother’s Day and graduation.”
TOP-SELLING CLC SCHOOLS
1. Alabama
2. Texas
3. Notre Dame
4. Michigan
5. Georgia
6. Texas A&M
7. Florida
8. LSU
9. Florida State
10. North Carolina
Note: From July 1, 2014, through March 31.
Source: CLC
CLC’S TOP-SELLING
MANUFACTURERS
1. Knights Apparel
2. Nike
3. Under Armour by Gear For Sports
4. Colosseum Athletics
5. Adidas
Note: For calendar year 2014
Source: CLC
Costco is using two types of displays. One is the standard table with a skirt and folded shirts stacked on top. The other is more elaborate with banners hanging from the ceiling that direct shoppers to the merchandise, which could be folded or on hangers.
“It’s a real bonus for our colleges to get this kind of exposure in a Costco,” Armentrout said. “Costco in the last year has really blown it out and been very supportive.”
The super centers and wholesale clubs, such as Costco, Sam’s, Wal-Mart, Target and Kmart, have shown more year-over-year sales growth than any other channel. The mass channel accounted for 14 percent of all CLC sales last year. The category has sales growth of 12 percent, which ranks ahead of the growth in university bookstores or sporting goods.
Sales across apparel categories are off to a strong start in 2015 with royalties paid to the schools up 19 percent in the first quarter.
The move into Costco in the last year is part of CLC’s effort to drive more collegiate product into more retailers. More than 37,000 retailers sold college gear in 2014, up from 28,000 in 2013.
