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Discount Store News, Oct 2, 1995

While specific Olympic-themed merchandise was not mentioned as among the top 10 growth categories by retailers, vendors contacted by DSN suggested that a surge in '96 Olympics items will come in Spring '96. For now, discounters are striking a variety of poses as they test consumer readiness to buy into the imagery, pageantry and excitement of the 25th Olympiad, July 20 to Aug. 4, 1996.

Kmart was the first to install a '96 Olympics concept shop (anchored by Hanes apparel goods) in early 1995 at a metro Atlanta store. Kmart, Venture, Target and Wal-Mart had all tested elements of an Olympics shop the previous July in St. Louis, during an athletic festival there. To date, discounters have used some restraint in climbing on board the '96 Olympics bandwagon.

Northeastern chain Ames is taking a "generic" approach in the early going, said Bob Smekal, dmm, menswear. He said Ames is using private label resources for garments with generic American flag and sports graphics. The American flag is proving to be a powerful fashion icon and should function as a transitional theme before a full-blown Team USA campaign kicks in.

Smekal said he expects to introduce an Olympics concept shop in Ames' seasonal department next spring.

For now, Ames bolsters flag caps, T-shirts and jogging suits by adding to the assortment some of the official "five rings" graphics trademarked by the U.S. Olympics Committee. Smekal said Ames has used Hanes' marketing efforts, including tents at several stores, with Olympic-hopeful athletes signing memorabilia.

Atlanta Centennial Olympic Properties, an official licensing body, said retail sales associated with the Olympic Games will total $1.5 billion to $2 billion. Apparel may account for half that amount. Other key licensed product categories and official vendors include film (Kodak), food (Coca-Cola) and domestics (Fieldcrest Cannon).

Beyond these sponsors, other entities have found paths to high visibility.

While not a direct licensee, Warner Bros. Consumer Products is in a cross-licensing program with Sara Lee's Hanes division. John Jonczak, director of sales for Hanes Licensed Products, said that the addition of Looney Tunes characters to Olympics graphics was a major factor in stimulating retailers' orders for this year's Back-to-School and Holiday seasons.

Jonczak said another means to broadening consumer interest came from discounters.

"Retailers said `focus on omen,' so we brought in Hanes Her Way with different cuts and designs," he said. The '96 Olympics mascot, Izzy, will further attract children's patronage, as will a new edition of Cabbage Patch Kids decked out in official togs for competition in a range of events from weightlifting to archery.

Jack O'Grady, vp Olympics and licensing at Fieldcrest Cannon, said Izzy will figure strongly in bedding items. He expects an extra boost at retail when the Izzy animated TV special airs in early December.

O'Grady asserted that spring '96 is the key season retailers around the country. He said top merchants at virtually all chains realize that they can scarcely afford to treat the '96 Olympics as anything less than a half-year marketing event.