HUTCHINSON, Kan. -- Following the test of an in-and-out baseball cap promotion last month in 15 of its stores, Dillon Cos.' Dillon Stores Division here has decided to carry the apparel line year-round at all 66 stores.
"The caps feature Major League Baseball, NFL, NBA and college team logos in popular price points that have been quite a hit with a cross-section of age groups from youngsters to adult shoppers," said a company source, who asked not to be identified. The all-cotton, washable caps come in one size. Caps with baseball team logos retail for $5.99; those with other sports logos are $6.99. Profit on the merchandise ranges around 40%.
Dillon will carry caps with 26 different licensed team logos for a total of 126 stockkeeping units on floor display fixtures. The merchandise is generating good customer interest, said Jim Clary, vice president and general manager of Specialty Marketing Group, Springfield, Mo., the supplier. The retailer's merchandisers here will be planogramming the caps "as a special display that can be moved around the store rather than placed at a permanent in-line position," said the source at Dillon.
"This is key to getting our best sales," the source said. "Shifting the display around and changing the mix of hats and logos gives it a new look every week or two."
The displays also will be worked at checkstands, the front end and at checkstand closures when a register is closed, added the source.
Clary reported: "One Dillon store sold one-third of its caps in four days. Teens and adults are very big in identifying with their favorite sports team."
Dillon Stores is also testing the caps an in-and-out promotion in Springfield, Mo., as is Consumers Markets.
"Dillon [in the Springfield market] has always done well with college team baseball caps in Kansas State and Kansas University logos in the $9.99 to $10.99 range. This makes these lower price points even more attractive," said Clary. According to Clary, "The popularity of baseball caps has been growing. Today people own several caps that relate to their favorite major league or college team."