VANCOUVER, B.C. - Consumer confidence may be at its lowest point in 20 years, but that didn't stop scores of smitten shoppers from swiping their credit cards for the newest 2010 Olympic mascot merchandise after it went on sale.
While goods in other departments piled up, Olympic boutiques were humming and Mukmuk the marmot sold out in days.
Economic and political mayhem may be choking Canada this Christmas season but Olympic licensees and retailers say they're breathing a little easier.
"I don't want to say the Olympics is recession proof," said Joe Freeburn, whose Vancouver company Cajo Designs manufacturers Olympic-themed accessories like glitter-encrusted compact mirrors and travel cases.
"But it kind of is."
Freeburn, who also makes accessories for other lines besides the Games, said the economic situation has seen him focus more exclusively on his Olympic line.
"Everybody wants to have the next poor boy cap," he said.
The red Canada poor boy cap, manufactured by Roots, is one of the greatest success stories of Olympic marketing.
The hat was made for the 1998 Olympics, and was so popular that Britain's Prince William was photographed wearing one and actor Robin Williams wore one to the Oscars.
Close to 40 different companies own the rights to use 2010 Olympic marks and graphics on everything from $200 waterproof jackets to the $7.95 "Joe" jacket - a reusable coffee sleeve made by Cajo.
They have mandatory sales targets set by the organizing committee and royalties to pay.
Targets depend on the licensee, but royalties start at about 15 per cent and they must be paid even if sales targets aren't met.
In their current budget, Olympic organizers aim to make $46 million from licensed merchandise, which translates to the sale of $500 million dollars worth of souvenirs.
It's the equivalent, roughly, of selling eight million sets of mascots, which retail at $60 each.
Or 38.5 million hockey pucks, which sell for $12.99 a piece.
Or perhaps 16 million of Vancouver's favourite fashion accessory - the umbrella. Official Olympic ones sell for about $30 each.
Heading into the Christmas season, Olympic merchandise sales are up over last year and some retailers are already putting in refill orders, said Will Andrew, president of Elevate Sport, one of the 2010 Olympics largest licensees.
"I think people are cautious, but I think they're cautiously optimistic," said Andrew.
But he added that with growing public awareness of the Games, sales are naturally getting stronger.
"Is it as large as it could have been, or is it bigger than it would have been? I don't know." he said.
A recent survey by Scotiabank found individual holiday spending on gifts, travel and entertainment is expected to average $790, down by $117 or 13 per cent from a year ago.
That includes a 19 per cent drop in anticipated outlay on gifts to an average of $563.
The mix and match of items and price points make Olympic merchandise marketable even in the down times, but many retailers point to something else, as well.
"I think it represents something that people aspire to and something that people look to, so I think even when times are tough, people might turn to that thing a little more because it makes them feel good," said Bill Stanbury, the director of the Olympic store at Vancouver's downtown Bay.
"It's the feel-good stuff that's going to go well this Christmas, and the Olympics have got to be the top of the list."
While the organizing committee is selling merchandise through 10 of its own stores, plus a roster of smaller establishments, HBC is the "official" retailer of the Games, giving Olympic merchandise a much larger market than it may have had otherwise.
The agreement, however, has the potential to become a bit of a yoke for the licensees.
HBC recently ran a sale discounting Olympic products by as much as 50 per cent, making it difficult for smaller shops also selling licensed goods to compete.
"The only thing you can hope for is that the (smaller retailers) aren't located anywhere near a Hudson's Bay store and that will allow them some insulation," said Lindsay Meredith, a marketing professor at Simon Fraser University.
The economic downturn is hitting the smaller stores as well, said Meredith, but there is hope on the horizon.
Seventy-five per cent of the sales of Olympic goods happen in the six months before the Games.
"The only other thing fortunately that's saving their bacon, maybe to some degree from the impact, is that we still are a good 390 days or whatever and counting (to the Olympics)," said Meredith.
"Could the timing be worse? Yeah."
