US bailout issue makes waves

SANDY PARKER REPORT, VOL. 32, ISSUE 30, OCTOBER 6, 2008
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
US bailout issue makes waves
LAST WEEK’S EVENTS ON CAPITOL HILL AND WALL STREET quickly reverberated throughout the United States and around the world and immediately gave fur retailers more to be concerned about than the upcoming season’s weather which, if ideally normal, may not be enough to bring in the business they need. The prospect of a deeper recession and how it would likely impact on consumer spending in general – and on luxuries like fur in particular – loomed large as they contemplated how best to cope with the situation, but in the main they were confident they could ride it out.
Fortunately, most furriers were conservative in their planning this year, not because they were prescient about the economy, but mostly due to heavier-than-normal inventory carryovers from last year. As a result, they are heading into a questionable season not overburdened with merchandise. And what they are carrying over has not lost value – in fact, will cost more to replace because skin prices have advanced since last year, as have labor and other manufacturers’ costs. Moreover, what they have in stock is already paid for.
AS TO WHAT EFFECT A WIDENING FINANCIAL CRISIS may have on the fur trade internationally, it’s still too early to tell. The Western European markets have been having economics-based difficulties for several seasons and see no improvement this year. The Chinese and Russian trades have already prepared for a strong season and apparently are betting their economic problems won’t be as big a threat as a mild winter. Because of their confidence, supplies of mink and most other furs have been cleaned out and the price structure is at record levels. Reports out of China last week were that the big factories were beginning to receive orders from major domestic and Russian accounts.
IN THIS ISSUE:
U.S. Bailout Issue Makes Waves
Stocks’ Dive Clouds Retail Outlook
Reaction Termed Worldwide
U.S. Consumer Confidence Up?
Tough Fur Season Is Predicted
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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