Chain closings stir concerns

SANDY PARKER REPORT, VOL. 32, ISSUE 10, APR. 21, 2008
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.
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International Fur News
with Sandy Parker
Chain closings stir concerns
THE GROWING NUMBER OF BANKRUPTCIES AND STORE CLOSINGS among major retail chains, while not yet noticeably involving fur operations, nevertheless is sowing the seeds of apprehension in the fur as well as other trades. The failures are linked to a general slowdown in consumer spending and a tightening in the credit markets, both developments related to the housing slump and mortgage crisis. Last week, the International Council of Shopping Centers estimated there will be about 6,000 store closings this year, an increase of 25% over the 4,600 that were shuttered in 2007. Although these were mostly furniture and home-related stores, there also were clothing and jewelry units as well.
The retail fur trade, with a few exceptions, is basically small-business oriented, yet is vulnerable to the same economic pressures that have been causing problems for the major operators. In some respects the pressures on furriers may even be greater than on full-service department stores. The big stores have their ups and downs all year and rely heavily on credit for their merchandise and to meet payrolls during the slow periods. But, depending on the merchandise, they usually can get two or more turns on their inventory. The fur business essentially is limited to three months a year, is highly weather-sensitive and the inventory turn is rarely more than once – if that.
DANISH MINK FARMERS BRED THE SAME NUMBER OF FEMALES this year as in 2007, but increased the black, mahogany, brown/glow and silverblue types, while playing down the other mutations. Overall, a total of 2.75 million females were bred. According to Kopenhagen Fur, the number of farms has continued to decline, but the average number of breeding animals has continued to increase. There currently are about 1,500 farms in Denmark, compared with 5,000 some 20 years ago, but the average number of females has more than tripled from 550 to 1,800.
IN THIS ISSUE:
Chain Closings Stir Concerns
Viewed as Sign of Recession
Fur Stores also Seen Vulnerable
Danish Sale Ends on Strong Note
N.Y. Market Time Reviving?
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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