Selling trackside merchandise out of haulers is a deeply ingrained tradition in NASCAR culture. Fanatics is about to shake things up and is confident that fans will warm up quickly to the change.
Fanatics’ 10-year, trackside merchandise deals with NASCAR and International Speedway Corp. were announced in January. The deals will see a phasing out of selling trackside merchandise through haulers in favor of a more centralized setup using climate-controlled tents.
Fanatics Authentic President Ross Tannenbaum, who helped spearhead the deals, acknowledged that the wary response that some nostalgic fans have voiced about the change is understandable. Still, Tannenbaum is resolute that the introduction of a more innovative and easier shopping experience will win over even the staunchest traditionalist.
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| Fanatics will phase in a tent system for selling trackside merchandise. |
“Like with anything else, when you have change, there’s going to be concern,” Tannenbaum said. “But I would say this: If we deliver on what we’re offering here, which is a better shopping experience with more product that you can actually interact with, with a seamless checkout process, and add some entertainment to it, I don’t see any reason why the fans don’t ultimately come around and feel it’s a great change.”
Fanatics’ NASCAR deal, which, according to the request-for-proposal document will yield $26 million annually from trackside merchandise, is the e-commerce giant’s biggest venture into the in-venue realm, though it has managed major operations such as the NHL’s Winter Classic and the SEC’s football championship game. And the company has long run NASCAR’s e-commerce operations.
At press time, Fanatics had yet to reach a deal with Speedway Motorsports Inc. to extend the deals to the track operator’s eight facilities that host NASCAR races. However, both sides have said that they have a good working relationship and intimated that a deal may be reached during the year.
Steve Phelps, NASCAR executive vice president and CMO, wouldn’t reveal if or how the financial structure of the NASCAR deal with Fanatics has changed from the sanctioning body’s prior pact with Motorsports Authentics.
However, he said the new business model is better overall because, logistically, it will reduce redundancies and the amount of travel that was needed to run the hauler program.
Phelps said he “firmly” believes the move will help the bottom line of all stakeholders because a fan now “will have more opportunity to buy, and a greater opportunity to buy at different price points with different product.”
Fanatics’ operation will require about 100 workers, mostly temporary employees, manning it on race weekends. In a nod to the previous system, Fanatics will incorporate many of the employees from the hauler system into the new program.
Due to the timing of the deals, which were finalized in December, and how long it takes to pull off a major change, the tent system won’t be seen in its full form until the middle of the season.
In the interim, Fanatics will utilize the hauler system and incrementally phase in elements of the tents (a handful of haulers may remain even beyond 2015 to help augment Fanatics’ operations in the tents). Fanatics doesn’t expect the program to be fully fledged in all aspects until the 2016 NASCAR season.
The tents will help make up what Fanatics is dubbing a sort of shopping courtyard. There will be two, 250-by-33-foot-wide sides that will flank the courtyard and be filled with drivers merchandise. Phelps said smaller teams will be able to have their drivers represented at the tents as well. In the center of the courtyard, an approximately 4,000-square-foot tent will have specific departments for women’s gear, kids wear, diecast and memorabilia, plus a customization hub. A checkout tent will be located on the courtyard’s backside.
The previous hauler system required fans to point to the merchandise they wanted to look at and get an employee in the hauler to hand it to them. Fanatics and NASCAR believe the new system will drive sales by making options more accessible to fans, thereby allowing them to more closely and quickly browse gear.
To make the space tech savvy, the company will have computer kiosks so that fans can order merchandise to be shipped to their home if they either don’t want to lug it around the track or if a certain item is out of stock. The company also will entice fans with the customization hub, which will allow them to get their name stitched onto apparel and choose among color options. Fanatics also will introduce promotional efforts in the tents to create synergy between the company’s trackside and e-commerce platforms.
Looking to 2016, when the system will be fully in place, Fanatics wants to begin introducing more advanced options such as the ability for fans to order gear on their phone and have it waiting for them at the tent. The company also will look to add features that will enable fans in suites to order on their phones or tablets and have the gear delivered to them while they’re watching the race.
Tannenbaum said that while a panoply of new, high-end products will be introduced, prices will remain the same or similar for current garments and hard goods. He said Fanatics will use its rights with teams to create some unique products and garments “to try to add a little more flair to the product line.”
Fanatics will look to add an entertainment aspect to the courtyard experience by holding activities such as driver autograph sessions, corporate sponsor engagements, and by filming special segments with media partners.
Overall, NASCAR and Fanatics are confident that the company has the experience, employees and wherewithal to take the trackside merchandise program to the next level.
“We have a pretty good feel for what’s working in the NFL and college and the NHL, and so our plan is really to try to take what we’ve learned in those other spaces that have worked, and bring them into the NASCAR world,” Tannenbaum said. “That’s where I really think that the information we have gives us an advantage over most people.”
