CSNC EXCLUSIVE: World Cup fever set to drive traffic for convenience retailers

Anne Kothawala, president & CEO, Convenience Industry Council of Canada, says retailers are wise to view the World Cup as part of a larger summer growth driver tied to sports, travel and social gatherings across Canada.

“It’s a big opportunity,” she says. “C-stores can tap into the World Cup fever in Canada this year as a supercharged extension of regular summer sports excitement and weekend rituals.”

Kothawala says convenience retailers are uniquely positioned to capitalize on the moment because of their close ties to local communities and high visibility along commuter and travel routes. “Convenience retailers are at the heart of communities (and can) tap into that excitement and possibility.”

Amplifying summer trends
 

Indeed, while the full impact of the World Cup remains to be seen, operators expect the tournament to amplify already strong summer trends over several weeks.

“We have had our eyes on the FIFA World Cup for probably about a year-and-a-half, two years now. So, we are very excited,” says Amedeo Catenaro, senior director of franchising, real estate & marketing at INS Market. “We're expecting, with the World Cup coming, especially at those core urban centres and those cultural centres, for our stores to do exceptionally well.”

Retailers near transit hubs, stadiums and cultural enclaves are especially positioning themselves to capture World Cup-driven traffic. Entertainment districts and culturally significant neighbourhoods that historically have football fans are likely to see the strongest lift.

“Just the amount of fanfare in the neighbourhoods that we're in is going to be quite remarkable,” he says. “In Toronto, we have stores in Little Italy, on College Street, the European cultural centre of the city, where we're anticipating incredible growth of volume there in those stores,” says Catenaro.

Large-scale outdoor activations include FIFA Fan Festival Toronto, in the Fort York & The Bentway neighbourhood, which will feature live entertainment, match broadcasts on a jumbo screen, and interactive experiences and draw thousands. Other locations are getting in on the action too. Similarly, in Vancouver, FIFA Fan Festival will take place at the PNE Grounds, with other indoor and outdoor locations hosting large public parties as well.

“Almost every day that there's a game, there's going to be an influx of people either taking time off from work or going to these events,” Catenaro says. That movement is expected to extend beyond game times, creating opportunities across dayparts as consumers move between work, transit, outdoor events and home watch parties.

To capture that flow, INS Market is making a big push to open new kiosk-style outlets in several Toronto downtown subway stations in time for the World Cup. “Location is everything for us,” says Catenaro. “We anticipate the traffic in there to be quite substantial,” he says, particularly as road closures and congestion push more people toward public transportation.

Beverages and ripple effects
 

As c-stores plan for this unprecedented event, which categories will be hottest: snacks, beverages, meal solutions, grab-and-go, beer/wine/RTDs?

“We are planning for substantial sales growth in all of those categories,” says Marc Goodman, vice-president and general manager for 7-Eleven Canada. “This is a great opportunity for soccer fans to try our proprietary beverages including Slurpee on those hot summer days, our fresh food including our recent launch of the Japanese style egg salad sandwich and some of our incredible private branded products including ice cream that they can only get from 7-Eleven Canada.” Goodman also expects delivery to be a big part of the World Cup surge as fans gather at home for games.

Catenaro notes that INS Market finds a significant uptick in its beverage categories across the board in almost every urban location in summer, including hydration products, energy drinks and, where permitted, alcohol. He says that with alcohol increasingly permitted in parks and gathering places in Toronto and Vancouver, convenience stores can expect increased summer sales—in addition to the surge from World Cup activities.

“The complementary categories tend to get a surge as well,” Catenaro says, pointing to salty snacks and confectionery.

Major CPG partners are also preparing to capitalize on the event, with increased in-store presence and promotional activity. “We like to think of our stores as almost an open palette,” Catenaro says. “If a vendor wants to come in and partner with us and take over the store, per se, we're more than happy to do that.” (For more, see sidebar “Brands”)

Planning for extended surge

With the World Cup spanning several weeks, retailers are preparing for both an initial spike and sustained demand, adjusting inventory strategies accordingly.

Because the tournament is so long, there is time to react to demand, says Catenaro. “Retailers will be able to see what the volume is like the first couple of weeks,” he says, adding that early sales trends will be needed to help inform replenishment decisions as the tournament progresses.

"This tournament turns summer from a seasonal selling-period into an event-driven opportunity,” says BJ Hamilton, senior VP of sales at Ferrero Canada, one of many brands leaning into the World Cup. “So, we’re likely going to see spikes compared to your typical summer season.”

What retailers can do, he says, is merchandise around match days, build game-day displays and drive a more occasion-based bundling experience—shareable snacks, party foods, treats.

“It can be very impulsive, and that’s where the retailers can really play a role—taking advantage of that last-minute trip if a game is starting in 30 minutes," he says.

At the same time, for many retailers, the tournament represents more than just a short-term sales bump—it’s a rare opportunity to connect with consumers during a high-energy, country-wide moment of pride.

“It’s an anomaly, right?” says Catenaro. “We’re not used to a big event like this, and it is a once-in-a-lifetime opportunity.”

Brands ramping up activations

Major CPG players are betting consumers will embrace World Cup fever in a big way, rolling out in-store and online programs featuring themed displays, collectibles, limited-time products and contests designed to drive engagement, impulse purchases and larger baskets during the tournament.

Key vendors/sponsors/partners include Coca-Cola, Frito Lay, Ferrero, Celsius and many more.

READ: Coca-Cola Canada Bottling kicks off FIFA World Cup activations

Among c-store initiatives, 7-Eleven is teaming up with Coca-Cola on several fronts. “Stores across the country are carrying FIFA Coca-Cola merchandise,” says Goodman, “while our downtown and airport locations in Vancouver and Toronto will be wrapped with Coke & FIFA messaging, and our team members will be wearing soccer inspired jerseys to help capture the FIFA spirit.”

INS Market is also partnering with Coca-Cola on an initiative where stores will distribute a series of unique collectable pins that come together to form a bottle design, exclusive to each host city.

Sweet packaged foods company Ferrero is among the brands leaning into the opportunity, rolling out Canada Soccer partnerships, contests and in-store programs.

Another brand tapping into World Cup excitement is Celsius beverages, which recently launched its limited-edition Electric Vibe flavour in Canada. Available first through an exclusive rollout at Circle K before expanding nationally May 18, the Sparkling Tropical Freeze beverage is being positioned around the high-energy atmosphere of this summer’s major sporting events, including soccer activations in Toronto and Vancouver.