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March 7, 2023

Fashion-Forward Approach Takes Isles From 31st into Top 5 in NHL Merchandise Sales

The New York Islanders have historically been amongst the National Hockey League’s bottom feeders in terms of merchandise sales. The club finished 31

out of 32 teams in 2020-2021, its last season at the Nassau Coliseum.

That has changed though over the last two years since the team moved into UBS Arena at Belmont Park. “Our per caps [or spend per person in attendance] are now in the top five in the league,” Paul Price (founder, Paul Price Global Consulting) said, and “we expect to be number one next year.” Price’s firm is an advisor to the club/venue.

But the Islanders rapid rise to the top of the retail standings has more to do with a new, fashion-forward approach to hockey-related merchandise, and the rising popularity of streetwear and luxury sporting goods, than the change in scenery.

At the heart of the team’s revamped strategy is Isles Lab, a 5,500 square foot store inside of UBS Arena. There visitors can find an eclectic mix of designer collaborations and limited-edition releases alongside more commonly available club branded swag.

“With new drops every game, we constantly experiment, listen to our fans for what they want, and then act accordingly,” Jason Katz (chief brand officer, Value Retail) said.

“The continual improvement is driving results. Sales are up 50% this year.”   

Fanatics operates the official team store for more than 50 professional and collegiate teams. Partners value the omnichannel relationship, the company handles both their e-commerce and stadium retail, and Fanatics’ ability to create a mirrored, seamless shopping experience for fans whether they are at home, on their phone, or at the game.

The Islanders wanted to go down a different path.

The club saw an opportunity to take “an innovative approach [to] design, product, service, and technology [at the new arena],” Katz said. “We had success operating the online shop –

IslesLab.com

– [during] the 2020-2021 season and felt confident we could do the same in the physical retail space.”

Isles Lab has the typical array of hats, t-shirts, and jerseys.

In fact, a customization bar, where fans can choose from roughly 100 different patches to have added to their jersey, resides at the center of the shop.

“The majority of those who buy a jersey customize it to some degree, and jerseys go from $170 up to $280 if you customize it,” Price said. “So, [the customization bar] certainly adds to the per cap.”

As does the selection of high-end items that would be considered atypical for a fan shop (think: hand painted varsity jackets, cashmere throw blankets).

The store was designed to appeal to the hardcore fan as well as a new, “fashion conscious customer,” Price said. “The ideal situation is a fan comes in with [another guest] and that other individual, who was never a hockey fan, let alone wanted to wear the merchandise, feels inspired enough [by the shopping experience] to want to wear it.”

The Islanders believe they have expanded the fan base by adding a fashion element to their business.

Isles Lab appeals to fashion-conscious fans by expanding on the materials and techniques used in the merchandise it sells. The club has also done a host of collaborations with designers from outside of the hockey-sphere, including Teressa Foglia (custom hats), Antonio Marais (Italian clothing and accessories) and Stan Clothing (re-imagined vintage jerseys).

“It’s under 20% [of total merchandise sales revenue], but collaborations are a sizable business for us,” Price said.

They also give fans another reason to visit UBS Arena. Some products, including many of the limited-edition drops, are only able for purchase at the venue.

The San Antonio Spurs have embraced the fashion genre in recent years too. The NBA franchise has participated in several brand collaborations (see: Sneaker Politics, Grungy Gentleman) and launched its own in-house fashion line, La Cultura. The streetwear brand, which releases collections bi-annually, leans into the Spurs’ Hispanic fan base and San Antonio’s rich Latino culture.

Efforts like Isles Labs and La Cultura are expected to become more commonplace in the years ahead.

“It’s no longer just about the games on the court,” Brandon Gayle (chief operating officer, Spurs Sports & Entertainment) said. “You’re going to see a general trend of teams leaning into building and engaging an audience 24/7.”

The goal will be to convert pro sports franchises into lifestyle brands, and retail and merchandise are among the ways a club can go about doing that.

Embracing streetwear and fashion can also help teams to reach a younger, more diverse demographic, and aid in their broader marketing and advertising efforts.

“The more people that are wearing our clothing, accessories, and jerseys out on the streets, the better it is for the team,” Price said.

La Cultura has been a profitable venture for the Spurs too.

“We’ve had record per caps and retail sales over the last two seasons,” Gayle said. “Through those extensions we’re seeing a direct impact from a revenue growth perspective.”

To replicate the successes found in New York and San Antonio, teams will need invest in personnel. Price believes Isles Lab works because of the creative and operations teams in place.

“You have to have the right sensibilities and people with experience to do it,” he said.

Sports-focused exec. search firms are officially on notice.