Cold weather no help to fur retail sales

SANDY PARKER REPORT, VOL. 32, ISSUE 44, JANUARY 26, 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
Cold weather no help to fur retail sales
DESPITE FAVORABLE WEATHER AND THE CONTINUED POPULARITY OF FUR as an important material of fashion, the current retail season is shaping up as far less successful than had been hoped. Not only was December a major disappointment, but one of the coldest Januaries on record across the U.S. has not resulted in a significant improvement. The financial crisis that has spread around the world not only has slashed discretionary spending power for most consumers, but apparently also is causing those less affected by it to think twice before making major purchases.
In prior years, if fur sales were disappointing at the height of the winter season, the blame usually was placed on mild temperatures that persuaded consumers to postpone their fur buying plans. This year, because of the sour economy, there simply are few buying plans, either for furs or any other luxury product.
OF THE TWO MARKETS THAT HAVE BEEN FUELING THE UPWARD SPIRAL OF SKIN PRICES, China is reported having decent sales, at least in the northern regions. Elsewhere, particularly in the export-oriented Southeast where both business and land values have dropped, sales of furs and other luxuries are reported down. Sales in Russia are described as spotty. With the oil bubble having burst, many of the fortunes it had spawned have disappeared and those who suddenly became millionaires have even more suddenly lost it.
Moreover, the ruble has declined sharply against the dollar, the euro and other currencies and the Russian government is trying to hold on to its shrinking supply of hard currencies. There were reports that Russians are having difficulty sending dollars or euros out of the country and that offers to pay in devalued rubles are being refused. Since their orders were placed, the ruble has dropped 25%. As a result, much undelivered goods are reported still hanging in China and Greece.
IN THIS ISSUE:
Cold Weather No Help to Sales
Sour Economy Takes Lead Role
Early Big Discounts Said to Help
China Sales OK, but Russia Slow
Ranchers Await New Price Trends
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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