Partnership Categories: Who's Hot, Who's Not

Which categories should sports marketing reps be targeting in early 2008? Which categories should they be straying away from? We all hear about the major players, but here are some insights on two (2) categories that are less discussed...

Who's Hot - Wholesale Retailers

As food and gas prices rise, the real estate market slumps, and Americans begin to feel the heat from the credit crunch, many are turning their shopping attention to Wal-Mart, Costco, BJ's, Sam's Club, and a few other of the nation's leading wholesale retailers. Marketers are seeing some clear changes in consumer behavior - people are driving shorter distances, making fewer shopping trips, and buying more items at a time. In March, Costco and BJ's saw monthly sales at stores open more than a year rise 7% and 6% respectively, even as overall retail sales fell 0.7%. The only sign of caution is that most of this growth has come from bulk purchases of food items, which happen to be the lowest-margin products on the shelves (Source: Businessweek, April 28.2008).

Who's Not - Casino's

Businessweek's March 19th edition revealed that the casino industry is rolling nothing but snake eyes in 2008 as consumers cut back on their disposable income and entertainment spending. The industry, once thought to be recession-proof, has experienced numerous downfalls in the past few months - Tropicana Entertainment filed for bankruptcy on May 5th and MGM Mirage saw earning sink 30% in Q1. Caution when approaching casino players, especially based in Las Vegas...