National retailers saw a decline in Penn State merchandise sales in the weeks after sex abuse charges were filed against former Penn State football assistant coach Jerry Sandusky.
When compared to the same week in 2010, the week after charges were filed against Sandusky saw a decline in Penn State’s share of the college-branded merchandise market from 2.67 percent to 1.93 percent, said Matt Powell, an analyst with sports industry research organization SportsOneSource.
This represents a 40 percent decrease, he said. Last week, sales had risen slightly, but still stand at 36 percent lower than this time last year.
College-branded merchandise accounts for more than $4 billion in annual retail sales, and Penn State typically ranks in the top 10 in sales, capturing roughly $80 million annually.
Powell said a drop like this is almost unprecedented.
“Most of the time when a school has an issue sales actually go up,” Powell said. “The sales improve as fans sort of rally around the team.”
Sandusky was arraigned on Nov. 5, and he is charged with 40 counts on seven different charges of sexually abusing boys. On Nov. 7, former interim Senior Vice President for Finance and Business Gary Schultz and former Athletic Director Tim Curley, now on administrative leave, were each charged with perjury and failure to report suspected abuse in connection with the Sandusky case.
Powell said it takes a big upset to see such a decline in merchandise sales.
“The only other time I’ve seen this sort of drop in sales was when Michael Vick was accused of dog fighting and sales dropped on his merchandise very quickly,” Powell said.
While Powell said it’s clear the case plays a large role in the declining sales statistics, Penn State merchandise sales were already trending downward.
“This downward trend can often be based on how teams are doing and things like their prospects for championships,” Powell said.
Some downtown State College merchants said they have not noticed a change in sales, while others report that — however minor — there has been a decrease.
“It hasn’t been significant, but there has been a slight decline,” Jonathan Estable, floor supervisor for Old State Clothing Company, said. “There’s still very much a high interest and loyalty within the community, but we do see more of a decline with outsiders and visitors.”
Jessica Middleton, a cashier for the Student Book Store, said she hasn’t seen a significant change in sales except for one item: shirts featuring former Penn State head football coach Joe Paterno.
Middleton said barring support for Paterno, sales are on par for the same time period last year.
She said she understands why there’s still demand for university-related items locally.
“If you’re a Penn State family or you go to Penn State, that goes through and through,” Middleton said.
The Associated Press and Collegian Staff Writer Mike Hricik contributed to this report.