The Market Share Compass

Retail Relevance

Jim Richards

CEO & Founder of The Market Share Group

For consumer brands, it is important to ask if a sponsorship provides any kind of competitive advantage with retailers. For example, we like NASCAR because a consumer brand can activate regionally with retailers over 40 weeks. When you add up all those regional activations, you get the equivalent of an incremental national holiday promotion.

During the pandemic of 2020-2021, our worlds were all turned upside-down. Retail will look different moving forward. Tactics may change, but fundamentals stay the same. Foot traffic times market basket times closure rate equals sales. The retail formula is still consistent whether we’re talking about a physical or digital location.

Foot Traffic x Market Basket x Closure Rate = Dollar Sales

If your sponsorship can be leveraged to impact just one part of the retail formula, then you are bringing relevance to your retail partner and deserve a conversation around incremental merchandising opportunities.