Impact of Retail Strategy, Location and Type of Business on Sales: A Case Study of Peace & Love Festival Borlänge

Abstract

Purpose - This study primarily examines how local retail businesses strategically take advantage of an event like the Peace and Love Festival. The financial effects of the event on these businesses were studied with a focus on whether sales increase or decrease during the Festival. The influence of three important factors was examined; business strategy, location of business and type of business on local businesses’ sales during festivals. The study assessed the impact of specific location and the effect of these festivals on different types of businesses. It uncovers the influence of such events on businesses, particularly on their sales. Overall, such festivals have positive financial effects on all local business, except a few, which are further explored in the study. Methodology- The study adopts a qualitative research method in order to obtain a deeper knowledge of how local businesses take advantage of events and festivals. Primary data has been gathered by interviewing local businesses and respondents from Peace & Love Festival. In total, 22 retailers were approached and interviewed. Non-probability, purposive sampling was used for the research in determining the sample population. Semi-structured, face-to-face interviews were conducted with respondents. The collected data was documented and analysed using interpretivist paradigm and content analysis. Findings- The results indicate that various types of businesses experience different sales effects during such festivals. Location of retail outlets and their effective strategies influence sales. Findings also show that hotels, fast food restaurants, and beverage sectors show higher sales as compared to other sectors. The retail stores showed slight increase in sales, but electronics/appliances stores experienced almost no change, and some even showed negative sales. Practical Implication- Businesses can take maximum advantages of such events and enhance their revenue by adopting different strategies. Governments can take advantage of such studies, and promote festivals as they have influential power on attracting large number of visitors towards the host destination.