Fur retail stores ponder sales stimuli

SANDY PARKER REPORT, VOL. 32, ISSUE 25, AUGUST 25, 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.
Subscribe now and receive all the latest news, either in print or electronically. Just $150 a year for 48 issues! Sandy Parker Reports, 21219 Lago Circle, Boca Raton, FL 33433; Tel: (561) 477-3764; Fax: (561) 862-7052; SParker@SandyParker.com; www.sandyparker.com
International Fur News
with Sandy Parker
Fur retail stores ponder sales stimuli
AMERICAN FUR RETAILERS HEADING INTO A NEW SEASON are looking for new marketing strategies that may help them through what has been shaping up as a difficult economic period. There already has been strong evidence that spiraling prices of food, gas and energy have been causing consumers at almost all income levels to get a tighter grip on their spending habits – especially when it comes to luxury items and other non-essentials. Last year’s marketing plans may stand some revising. And, with the furriers’ key selling period only about two months away, the opportunity to make those changes is quickly shrinking.
A spot check of retailers last week indicated that few had come up with any new strategies, but that most were giving it some thought. One plan that already was showing promise was to shift more than just seasonal emphasis to the service aspects of the business, namely cleaning, glazing and remodeling. The services, including storage, account for 20% to 35% of their total revenues and an even bigger share of their bottom line because of the high profit margin.
IMPORTS OF FUR APPAREL INTO THE U.S. CONTINUED THEIR LONG DECLINE IN JUNE, the six-month total dropping more than 13% from the same period last year. Imports have been declining steadily for more than three years, having fallen 8% in 2005, 13% in 2006 and another 23% last year. The downtrend began following the 2004-05 season, during which retailers failed to achieve the kind of volume increases they had expected. Their resulting overstocked positions, in combination with subsequent price increases, put many on a more conservative track for the ensuing years.
According to the latest Commerce Dept. figures, June imports from all sources dropped more than 20% to a total of $9.7 million. This brought the six-month total to $34.2 million, compared with $39.5 million last year.
IN THIS ISSUE:
Stores Ponder Sales Stimuli
Seek to Offset Buying Slowdown
Danish Mink Crop Unchanged
Weak $ Boosts FFS Volume
U.S. 6-Mo. Imports Drop
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
-
For further information contact Fur Commission USA.
Home
© 1998-2011 Fur Commission USA