Rising Canadian dollar troubles vendors

SANDY PARKER REPORT, VOL. 30, ISSUE 9, APR. 17, 2006
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
Rising Canadian dollar troubles vendors
AS THE CANADIAN DOLLAR CONTINUES TO INCH UPWARD toward parity with its American counterpart, manufacturers north of their common border are feeling less secure about their sales prospects with U.S. retailers. Until several years ago the largest source of fur products imported by Americans, their share has declined steadily and last year amounted to less than 20%. That decline was due primarily to the ascendancy of Hong Kong/China to its position as manufacturer for the world, including an increasing number of wild furs that have been Canada’s forté. The steadily rising value of the Canadian dollar is merely exacerbating the issue by further narrowing the currency edge that Americans have enjoyed for years.
AS RECENTLY AS FOUR YEARS AGO, AMERICAN RETAILERS TRAVELED TO MONTREAL with as much as a 40% currency advantage, which enabled them to stretch their dollars that much more. By last year, that spread had been whittled down to about 20% because of the strengthening Canadian dollar. Since last May, further appreciation has narrowed the gap by almost another 10%, further eroding the Americans’ edge. This comes at a time when wholesale garment prices have been rising at a substantially greater rate and placing significant strain on retailers’ budgets. In the past two years, wholesale prices of mink garments have risen as much as 70%. On top of that, retail sales in the U.S. in January and February – both major months – were largely disappointing, leaving them with more inventory to carry over.
This has not gone unnoticed by the producers of the North American Fur & Fashion Exposition in Montreal, which opens in two weeks. They have reduced ticket costs and added a few amenities to make the fair more attractive to visitors from the U.S. and elsewhere.
IN THIS ISSUE:
Rising Canada $ Troubles Vendors
Shrinking Buyer Edge Seen Hurting…
…but Other Mfrs. Expect Gains
Mink Easing Viewed as Temporary
Sable Prices Mostly Firm to Higher
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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