Fur service business off at stores

SANDY PARKER REPORT, VOL. 33, ISSUE 20, JUNE 29, 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 service business off at stores

THIS IS THE HEIGHT OF THE STORAGE SEASON FOR NORTH AMERICAN RETAILERS, but this year’s activity appears to be missing some of the luster it has shown in previous years. The arrival of warm weather and its molting effect on fur wearers usually triggers an influx of garments for safekeeping in cool vaults, as well as cleaning, repair and any other services they may require. So far this year, however, retailers across the U.S. are reporting the traffic is down somewhat and they tend to blame it mostly on the economy.

With sales of new furs slack at this time of the year, furriers in Europe and elsewhere generally close for a month or more of vacation. Not in the U.S. or Canada, where consumers are made to understand that professional care of their furs can extend the life of their investments. Not only does the service business keep retailers busy until the start of the fall selling season, but it is also the most lucrative aspect of their operations. With this business accounting for anywhere from 10% to 30% of their total revenues – and an even bigger share of their bottom lines – they take it very seriously.

A spot check of key areas last week indicated that incoming storage units were running as much as 20% behind last year at this time.

THE FINAL REPORT OF THE RECENT BIG MINK SALE AT KOPENHAGEN FUR showed that prices were firm to 15% higher than at its April auction, but also 5% to 10% above the more recent international levels. Of the more than 600 buyers in attendance, fully two-thirds were from Hong Kong/China. On the last day, too late to be included in last week’s report, a total of 465,000 mahogany pelts were 100% sold in fierce competition, prices rising 6% for males over April levels and 7% for females.

IN THIS ISSUE:
Service Business Off at Stores
Consumers Pinched by Economy
Mink Ends on Strong Note
N.Y. Orders in Slow Start
Lack of ‘Market Time’ Is Felt

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