Weather ideal, but fur sales decline

SANDY PARKER REPORT, VOL. 32, ISSUE 42, JANUARY 12, 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
Weather ideal, but fur sales decline
SEASONABLY COLD WEATHER THROUGHOUT MUCH OF THE UNITED STATES helped pull fur retailers through a better December than they had expected in such a sour economy, but sales were down nevertheless. For many, it was the worst December in recent memory and, as it usually is the biggest of their four-month season, was not a welcome signal as to how their fiscal year would go. Ironically, many termed it the best December in years from a weather standpoint which, together with fur’s continued importance in the overall fashion picture, could have made it a banner month if not for the economy.
According to a spot check of retailers in key areas around the country, December sales declines were mostly in the 15% to 20% range, although a few managed to fare somewhat better. The Southwest and the West Coast appeared to come up with better results than other regions.
RETAIL FUR SALES ARE REPORTED TO HAVE PICKED UP IN CHINA, especially in the colder northern sections. In the Southeast, however, where the economy has been hurt by the declining export trade, retail business in general is described as sluggish. The arrival of colder temperatures in Moscow and St. Petersburg is said to have brought a pickup in fur sales, but Russian retailers are feeling the effects of the financial crisis.
Meanwhile, American retailers are expecting no miracles in January or February and are merely looking to move out as much of their stocks as they can. To this end, many have entered an end-of-season clearance mode earlier than usual and, if necessary, will start their final clearance efforts sooner as well. Generally speaking, most were conservative in their preparations for this season, not because any foresaw the collapse of the financial markets, but mainly due to their existing inventory and sharply higher prices as a result of advances at the skin level.
IN THIS ISSUE:
Weather Ideal, but Sales Decline
Economy Blamed for Dec. Drop
Season Prospects Called Dim
Consumer Confidence Hits Bottom
Wild Furs Draw Some Interest
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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