French retailers reported disappointing holiday sales at the end of 2005, the first decline in December consumer spending since 1998, Australian Wool Innovation Limited conveyed.
Clothing sales were weak and it is understood that the pattern of French retail sales has changed, with January winter sales (and summer sales in June) now accounting for an increasing proportion of annual clothing purchases.
There have been anecdotal reports of a robust beginning to the January sales, although the January sales data is not yet available for confirmation of any upward trend.
Apparel retail sales for 2005 were lower (constant Euro value) compared with 2004. However, Woolmark's wool retail demand volume indications (up to September 2005) suggest a moderate improvement compared with 2004, after 3 years of decline.
Concerns remain over consumer confidence, which is near to a record low amid ongoing job cuts and unemployment above the euro zone average. Some economists are not so pesimistic however and suggest that spending remains an overall driver of growth.
Australian Wool Innovation Limited
marketing@alchempro.com
