North American Fur & Fashion Expo prospects looking up

SANDY PARKER REPORT, VOL. 33, ISSUE 12, MAY 4, 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

North American Fur & Fashion Expo prospects looking up

AS THE INTERNATIONAL FUR FAIR SEASON WINDS DOWN, the North American Fur & Fashion Exposition in Montreal this week could prove to be an exception to the generally sluggish results so far. Not that anyone is predicting a howling success, but the expectation is that it could turn out to be relatively better than the other fairs elsewhere. The main reason is that American retailers – traditionally the biggest supporters of this event – have come through a decent season and have moved enough merchandise to warrant replacement. And, at a time of increased cost-consciousness, Montreal’s proximity outweighs Hong Kong or Milan.

True, the average retailer is scaling back his inventory plans in view of current economic conditions, but they do have to replace certain basics and also will be looking to brighten their collections with new fashions. A spot check of leading retailers across the U.S. last week indicated there may be more heading for Montreal than in recent years, mainly because the overseas traveling expenses couldn’t be squeezed into their reduced budgets. These include several who had previously patronized NAFFEM, but then found it more economical to buy direct from manufacturers in Hong Kong. With their buying plans now cut back, however, those savings no longer cover the trip’s expense.

MEANWHILE, SPRING RETAIL SALES – RARELY ANYTHING TO SHOUT ABOUT – are described as on a par with last year despite the sour economy. Sharp discounts are cited as having played a major role. With retailers in general offering heavy discounts – and discounting has become the rule – those offered by furriers appear to have taken on greater credibility than in previous years. As a result, several are reporting that unit sales are up, but dollar volume is slightly off.

IN THIS ISSUE:
NAFFEM Prospects Looking Up
Greater U.S. Attendance Seen
Stronger U.S. Dollar also May Help
Consumer Confidence Improves
Sable Prices Ease from February

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