Minutes after the green flag dropped on the 99th Indianapolis 500 at Indianapolis Motor Speedway last May, merchandise staffers across the facility began stocking shelves with gear for the 2016 race.
Typically, IMS doesn’t begin offering items for a following year’s 500 until October. IMS officials didn’t want to overlook last year’s race, but they knew how big an opportunity this year’s 100th running presented.
The decision to go to market early appears to have paid off.
IMS merchandise sales were up about 80 percent year over year heading into May, double the 40 percent projection
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| Premium items have sold well, including this commemorative race car nose cone, priced at $800. |
track officials had made, according to Nicole Garside, IMS’s senior director of consumer products. Online sales in 2016 have already nearly matched the total from all of 2015, and sales have more than doubled at IMS’s store at Indianapolis International Airport and at the IMS Museum.
For its part, IndyCar had seen a 47 percent average increase in merchandise sales after four races so far this season, and 100th running merchandise made up 15 percent of that.
Legends handles online sales for IMS and IndyCar.
“We expected to see big increases in sales looking at numbers from the 100th anniversary [of IMS in 2011], but people are just eating this stuff up,” Garside said. “We just can’t get it out fast enough.”
IMS officials declined to comment on revenue figures aside from noting that Hulman & Co., the owner of IMS and IndyCar, is clearly seeing a spike this year. Sources said that in a normal year, IMS’s annual merchandise sales — separate from IndyCar’s — are in the mid-seven figures to low eight figures.
IMS is offering more than 300 items that were specially made for the 100th running, ranging from inexpensive things like a postcard set ($1.50), a koozie ($5) and a credential/lanyard set ($10), to more opulent options like a Davidoff Cigars set ($300), a Tag Heuer watch ($5,700) that has sold out and a Herff Jones ring that can run as much as $9,000.
Garside said that premium 100th running options have been particularly popular. For example, the track made a commemorative 100th running race car nose cone that costs $800. Originally, IMS had only 100 made but has ordered a second batch after selling out.
Other premium options that have sold well include Nike polos ($80), limited-edition New Era hats ($65) and framed Highland Mint pieces (which run up to $500).
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The track will have twice as much inventory in stock as last year.
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Along the way, IMS and officials with Legends have learned that fans seem to have a preference for gear that mixes legendary drivers and cars with current icons. For example, a car poster T-shirt ($28) that shows the evolution of open-wheel race cars is one of the top sellers in the 100th running collection.
“We weren’t sure if we needed to just stay all historic, or mix in some of the current [drivers and cars],” Garside said. “What we’re seeing when we mix is that it is more popular.”
IMS — which has about 65 licensees — will have more than 500 workers (including 12 of Legends’ out-of-town district managers) overseeing more than $3 million of inventory across 70 to 80 points of sale during race weekend.
That’s twice as much merchandise as last year. Track executives are intent on not running out of merchandise as they did when the track celebrated previous milestones.
IMS officials expect the race program to also be in demand. The track printed 85,000 copies for this year’s race, each of which will come with six frameable prints and a special 100th running Hot Wheels car. The track expects to sell at least 70,000.
So how is IMS going to keep the gravy train rolling once the 100th running is over? Roll out more 100th running merchandise.
Some of the gear is being intentionally held back until after the 500. Additionally, Garside pointed out that the race itself will create opportunities to sell items such as a 100th running commemorative book or actual items used or raced on during the event. New Era also will be on-site at IMS to etch the winner’s name onto hats that then can be sold on the spot.
“We have a lot of things that we’re going to start teasing out just following the 500 to kind of keep people excited,” Garside said. “Obviously there’s a long offseason from one 500 to the next, so we need to look at ways to give people a reason to come back.”
