North American fur service business running late

SANDY PARKER REPORT, VOL. 31, ISSUE 20, JULY 2, 2007
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 service business running late

THE ARRIVAL OF SUMMER FINDS NORTH AMERICAN FUR RETAILERS DEEPLY INVOLVED WITH THE SERVICE ASPECT OF THEIR BUSINESS which, following a mild first-half of the winter, hadn’t appeared very promising. Considering the significant amount the storage and service area contributes to their annual revenue – and even more to their profit picture – it was a cause for concern. But Mother Nature, who withheld her cold temperatures until mid-January, apparently has given many consumers enough reason to wear their furs until well into April – and enough cause to bring them in at this time for restoration and summer storage. That traffic also usually results in a substantial part of new-fur sales at this time of the year.

Service activity, which got off to a later start than usual because of the colder spring in many parts of the U.S., is described as good at this time. Incoming storage garments, according to retailers, have yet to catch up with last year, which was merely okay because of that preceding mild winter. Orders for cleaning and repairs, however, were said to vary according to how much effort was put into promoting them. In last week’s survey, most retailers conceded they and their staffs were working harder to convert the storage orders to cleaning, repairs and other services.

AS EXPECTED, HONG KONG MANUFACTURERS HAVE POSTED PRICE INCREASES on mink garments reflecting recent advances at the auction level. The new rates range from 5% to 10% depending on color and quality, as well as their supply of lower-priced skins from previous auctions. In New York, vendors were already passing along the higher rates on new orders. The increases are not expected to encounter much resistance, considering that the new rates are mostly still below last year’s levels for comparable garments.

IN THIS ISSUE:
Service Business Running Late
Delay Laid to Colder Spring
Hong Kong Raises Prices 5%-10%
Wild Furs Firm in North Bay
U.S. Consumer Confidence Dips

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