Fur retail season ends on softer note

SANDY PARKER REPORT, VOL. 33, ISSUE 4, MARCH 9, 2009
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

Fur retail season ends on softer note

WITH FEW EXCEPTIONS, FEBRUARY WAS ANOTHER DOWN MONTH FOR FUR RETAILERS IN THE U.S. AND ELSEWHERE, providing a weak finish to the main part of their selling season. And, for the first time in many years, no one was blaming the weather for the disappointing results. In fact, those who were able to come close to or even exceed last year’s figures gave almost full credit to the cold temperatures that prevailed for most of the month. But even those who reported sales declines felt they did relatively well considering the financial turmoil that has enveloped the globe and caused consumers almost everywhere to rein in their spending.

As the economic crisis in Europe continued to worsen, it cast a cloud over the big MIFUR fair that opened its five-day run in Milan last Wednesday. This year, for the first time, the event combined several fairs – including Fur & Fashion Frankfurt – into one with the expectation the move would produce a larger attendance. Early indications, however, were that the shows’ producers would be disappointed and that the final tally might even show a decline.

ALTHOUGH THE FINANCIAL MELTDOWN THAT HAS ENVELOPED THE WORLD BEGAN IN THE U.S., the effects have become even more serious elsewhere with repercussions already being felt at the retail level. This was evident in the plunging stock markets around the world, the declines over the past six months having surpassed 50% in some cases. This also has been affecting currency exchange rates and, in turn, skin buying plans at the trade level as well as garment orders placed by retailers at the international fairs. The dollar, ironically, has strengthened in recent months, while such other fur-related currencies as the euro, the Danish krone, the British pound, the Korean won and the Canadian dollar have slipped, thereby reducing the purchasing power of traders using those currencies.

IN THIS ISSUE:
Season Ends on Softer Note
Weather Good, but Economy Not
Stores Report Slimmer Margins
Buyers Cautious at MIFUR Event
Sales Down at Hong Kong Fair

For extracts from back issues of Sandy Parker Reports see News Archive. Subscribers can access an archive of complete issues at www.sandyparker.com.