Fur retailers eye credit card increases

SANDY PARKER REPORT, VOL. 33, ISSUE 37, NOVEMBER 16, 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 retailers eye credit card increases

FUR RETAILERS ARE KEEPING A CLOSE WATCH ON DEVELOPMENTS IN THE CREDIT CARD BUSINESS. Personal bankruptcies and delinquencies have resulted in losses for banks. As a result, interest rates have been rising, credit lines are being cut and many new fees are being applied to even the best cardholders. Considering that credit cards account for upwards of 80% of their business, the retailers’ concern as regards consumer reaction is understandable. New federal rules designed to curb abuses by card issuers are supposed to go into effect next year.

A spot check of fur retailers last week found that credit card purchases account for between 80% and 90% of their business. They showed no immediate concern because they felt their customers’ buying patterns would not be greatly changed as a result of new credit card terms. And, because theirs is strictly a big-ticket business, the card companies treat them differently than they do those selling lower-priced items.

IN THIS ISSUE
Prices Seen Rising as Dollar Falls
Shorter Skin Supply also a Factor
China Viewed as Main Support…
…but Role Causes Some Concern
Stores Eye Credit Card Increases

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