The Digital Collegian - Published independently by students at Penn State
NEWS
[ Tuesday, Oct. 16, 2001 ]

PSU merchants feeling effects of losing team, weak economy

For The Collegian

Penn State diehards are not the only ones suffering this football season.

Many local merchants, particularly those who sell Penn State merchandise, are seeing a drop in sales this fall.

"There has been a slight trend in sales this year, down 5 to 10 percent," said Robert Pass, manager of Clothesline, 138 E. College Ave.

"Hardcore fans will buy whether the team is winning or losing. But it's the marginal fans that stop buying."
— Robert Pass
manager of Clothesline

Some retailers attribute poor sales to the football team's 0-4 start, the worst beginning in the history of the program under Coach Joe Paterno. Pass said some people stopped buying Penn State gear.

"Hardcore fans will buy whether the team is winning or losing," said Pass. "But it's the marginal fans that stop buying."

For some retailers, this is that second straight year that a losing football team may have hurt sales. Last year's team was 5-7.

"Last year was as bad (as it is this year)," said Ray Agostinelli, general manager of McLanahan's Penn State Room, 111 S. Garner St. "Yes, this year is bad, but it's not any worse than last year."

Agostinelli also thinks the football team's losing record has something to do with his store's sales.

He said the university is suffering along with retailers, because it gets a fraction of the profits from licensed Penn State apparel.

"I hate to see them lose," said Agostinelli. "I'm sure it's tough on the university too."

There are many reasons, however, why sales could be down this fall. First of all, sales for almost everything are down nationwide, as the U.S. economy drops.

Also, the Sept. 11 terrorist attacks put a temporary halt to almost all aspects of society, including sales of sportswear.

These factors do not go unnoticed by retailers.

"(The team) is not winning, that hurts, but minds are elsewhere," Agostinelli said. "People just aren't talking about sports."

Despite the team, there are several factors working in the retailers' favor. The recent Beaver Stadium expansion, which was finished this year, increased capacity to 106,537 fans -- and more prospective customers.

In addition, this year's home schedule features tough opponents, such as Miami and Michigan. Bigger games tend to draw the most rabid of Penn State fans, who coincidentally buy more Penn State merchandise, Agostinelli said.

Vendors also fair better when Penn State plays games later in the day, said Steve Morris, manager of University Book Centre, 206 E. College Ave.

Also, while the football has been struggling, other Penn State teams have surged. Agostinelli said the success of last year's basketball and hockey teams has helped sales.

A combination of these factors might help explain why some retailers have reported no loss in sales.

"We haven't seen a change in sales," said Bryan Demko, general manager of The Family Clothesline, 352-B E. College Ave. "We have a good alumni base; they're going to buy no matter how good the team is."

Others also have reported steady sales this fall.

"We're about the same as last year and the year before," Morris said. "Some stores are complaining, but not us."

But Morris acknowledges that if the team continues to slide, his store might feel the effects that other local vendors have.

"I'm always worried," he said. "But it hasn't happened yet."

While this fall is tough for local businesses, the near future may be tougher and local merchants are finding ways to be optimistic.

"It's a trend, it goes up and down," said Agostinelli. "Everything will come out alright. I always think positively. We have a lot of loyal fans. We're lucky here."

 



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