Page 19 - Craftcil March 2017
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n ews briefs

                 The numbers say                    Shift in footwear and accessories spending

                 furniture business                                sends warning signals

                should be smokin’                    Apparel, footwear, and fashion accessories to get impacted

            says Economic roundup for Spring
                                                        The three key components of the $334 billion retail fashion segment,
               The traditional drivers of furniture sales,  apparel, footwear and fashion accessories, are each in different positions when it
           employment, home ownership and          comes to the business, according to global information company, The NPD
           consumer confidence, just to name three, are  Group. The apparel industry, which represents 65 percent of total US retail
           all performing at a level that suggest the  fashion dollar sales and spans everything from basics to jeans, continues to enjoy
           furniture industry should be delivering  the consistent growth experienced over the past few years. Conversely, the
           substantial growth right now in the US  more trend-driven footwear and fashion accessories industries are now
           market. The economy added 235,000 new   experiencing sales declines, keeping overall retail fashion sales in the 12 months
           jobs in February, and unemployment was  ending February 2017 even with results from the prior year.
           down slightly for the month to 4.7%.        While the footwear and fashion accessories industries experienced dollar
           Consumer confidence rose to 114.8 in    sales growth in the 12 months ending February 2016, both have taken a turn in
           February, up slightly from January and then  the past year. The US footwear industry declined 1 percent to $65 billion in the
           jumped to 125.6 in March, its highest level  12 months ending February 2017, driven by in-store losses. Fashion accessories
           since December 2000.                    sales dropped 7 percent, to $51 billion during this period, with declines
                                                   occurring both online and in-store. Not only
                                                   are consumers spending less, they’re
                                                   purchasing fewer items as well. These
                                                   declines occurred while segments of the
                                                   millennial generation increased their
                                                   spending on footwear, fashion accessories,
                                                   and apparel.
                                                       “The losses happening within footwear
                                                   and fashion accessories are leading
                                                   indicators of the fundamental changes occurring within the whole of fashion at
                                                   retail,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc.
                                                   “Consumers tend to build their wardrobes through accessories and footwear,
               Sales of new single-family homes were  giving their outfit a fresh look, so when sales of either of these industries slow or
           up 6.1% in February, and year-over-year sales  decline it signals a decline in fashion as a priority.” As activewear has been in
           of existing homes rose 12.8% for the month,  apparel, the sport leisure category has been the recent bright spot in footwear.
           compared to the same time period in 2016.  But, the fashion segment, representing more than 40 percent of annual
           Median existing home prices were also up for  footwear dollar sales, has been challenged in the past year – down 6 percent in
           February, the 60th consecutive month of YOY  the 12 months ending February 2017. The fashion accessories industry has seen
           gains. On the other side of the coin, however,  growth in categories like luggage and backpacks. However, one of the biggest
           the percentage of Americans moving over a  struggles for this industry has been the now $7.3 billion handbag category,
           one-year period - a significant potential  which lost more than $1 billion in sales between March 2016 and February
           contributor to furniture sales - fell to an  2017.  The active influences that drove apparel did not impact the total
           alltime low of 11.2%. A major contributor to  accessories and footwear businesses in the same way, while fashion athletic and
           this decline is the stationary status of the  retro sneakers worked well, consumers continued to be presented with the
           nation’s Millennials, only 20% of which  same non-athletic inspired fashion footwear and bags. The overall scope of
           moved last year. That’s about 5-7% less than  today’s fashion innovation needs to reach beyond one audience or one set of
           the activity of previous generations at the  consumer demands, but also be prepared to move with new influences as they
           same age. „ Source : Furniture Today    take shape. „ Source : NPD

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