Slow retail sales dampen placement of new orders

SANDY PARKER REPORT, VOL. 31, ISSUE 3, MAR. 5, 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
Slow retail sales dampen placement of new orders
THE LOSS OF RETAIL SALES DURING THE MILD SPELLS IN THE KEY DECEMBER- JANUARY PERIOD took a toll not only on prices paid for skins at this year’s auctions, but also on the placement of garment orders for next season. Fur retailers virtually around the world were affected by the unseasonable temperatures and are sitting with much more inventory than they would like. Among the first to feel the effects of this situation were the exhibitors at last week’s Hong Kong International Fur Fair, which is the first stop on the global circuit for this peripatetic trade.
This was the 25th edition of the Hong Kong Fair and its biggest ever, but exhibitors’ hopes of exceeding last year’s figures were dashed in advance by the disappointing retail season. The sharply lower skin prices, which would be translated into reduced wholesale garment prices, also would depress their figures. Buyers attending the fair estimated that prices they were quoted for mink garments were about 20% to 25% lower than at last year’s fair, which some thought was not enough of a reduction considering that skin prices were down about 35% or more from a year ago.
IN THE WINDUP OF THE RECENT AMERICAN LEGEND AUCTION, mink prices showed a bit more strength than they did a week earlier, when a new market level was established and buyers’ confidence apparently was restored. Although the new levels are substantially below a year ago, they still represent a reasonable profit for ranchers and are regarded as a realistic correction following three years of sharp advances sparked by strong Chinese and Russian buying. Those fast-growing and aggressive markets suddenly came face-to-face with reality in the form of a mild December and January which slowed retail sales and caused a backup in the distribution pipelines.
IN THIS ISSUE:
Sales Loss Dims New Buying
Crowd, Orders Down in Hong Kong
Lower Prices No Big Incentive
Mink Shows Strength in Seattle
February Sales Score Gains
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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