Tar Heels' hoops title helps retail sales bounce back

CHAPEL HILL, N.C.

When the clock struck zero April 6, this charming college town in the heart of the Research Triangle received an economic stimulus package like no other.

The jolt came the moment North Carolina beat Michigan State 89-72 in the men's national basketball final.

Within days, conspicuous consumption was alive and well again - at least on Franklin Street, this small city's main thoroughfare. T-shirts commemorating the Tar Heels' accomplishment were gobbled up, as were sweatshirts, replica jerseys and any memorabilia sold by the shops hawking UNC merchandise.

"You wouldn't know it was a recession, based on the response we've had," said Tarheel Book Store manager Christian Campbell. "People want this championship gear."

Especially Tar Heels fans. In 2005, when North Carolina won its third national title, it established a revenue record for the Collegiate Licensing Company's 160-plus schools, generating $590,000 from NCAA basketball championship licensing alone.

Based on the sales performance of the Tarheel Book Store, those numbers could be even higher this year, even with the current economic downturn.

"We can only compare our numbers to 2005, and in comparison, we are up significantly," Campbell said. "That surprises me."

After the problems the auto industry has faced, many in East Lansing, Mich. - where Michigan State's campus is - could've used the financial windfall a Spartans title would've brought. But one person there isn't complaining. Greg Ballein, who grew up and lives in East Lansing, is president of the Tarheel Book Store.

"It would have been a shot in the arm for East Lansing," Ballein said. "I think it would have had the same positive effect in Chapel Hill. I bleed green, but I am also a huge UNC fan. It was difficult for me."

And even in an age of e-commerce, when everything is a click away, it's a destination for people looking to score UNC merchandise.

"People have driven for hours," said Holly Dedmond, manager of Chapel Hill Sportswear, another local retailer. "They want the authentic stuff. That seems to be important to people who have the means to get there. They're so excited Carolina won that the money is almost irrelevant"

The evidence is difficult to ignore. Chapel Hill Sportswear ordered more than 50,000 commemorative T-shirts in anticipation of heavy demand for championship paraphernalia. They expect customers to flock there for months to come - customers like Carlyn Cunningham, a UNC graduate and Raleigh resident.

Cunningham made the short trip to Chapel Hill with the intent of picking up championship gear. With her son, Ethan, tagging along, she bought a sweatshirt and a stuffed animal.

"We ended up spending about $45," she said. "I felt like I needed to come celebrate and encourage him to be a Tar Heel fan."

Because of people like Cunningham, local businesses are thriving.

The Tarh eel Book Store sold 10,000 T-shirts in three days and is expecting to double its revenue projections over a non-championship year.

Dedmond said the bounce her store has seen should continue through graduation and perhaps beyond. "Sales are off the charts," she said.

"We are little surprised by the volume. But we just won a national championship. People are going to spend money."

 Rainer Sabin, 757-446-2367, rainer.sabin@pilotonline.com