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.