BEIJING, Dec. 27 -- Mitch Reily, a retired medical researcher, was so impressed with the latest styles of fur coats that he recently bought two: a full-length US$3,500 mink coat as a gift for his wife and a US$2,000 mink bomber jacket for himself.

    "People look at you and say, 'Look at that!'" said Reily after buying the coats at Richard-Donald Furs Inc in Wilmington, Delaware. "It's well accepted now. Years ago, people frowned at you."

    Sales of furs, which plunged by one third in the 10 years ending in 1995 amid animal-rights protests, climbed about 15 per cent to a record US$2.1 billion this year, according to Fernandina Beach, Florida-based research firm Southwick Associates. Federated Department Stores Inc and Neiman Marcus Group Inc are adding designer fur accessories, and chains including Sears, Roebuck & Co and JC Penney Co are reaching higher sales from fur and faux fur.

    Fur sales account for roughly 2 per cent of sales at department stores, said Richard Hastings, a retailing analyst with Bernard Sands LLC in Charlotte, North Carolina.

    "If you are fashion conscious, you'd like to have an item with some fur on it this season," said Lori Wachs, who helps manage about US$110 billion at Delaware Investments in Philadelphia, including Federated Department Stores shares.

    This year's holiday fur selection, including ponchos, pants and purses, appeals to buyers in their 20s and is boosting sales at a wide range of retailers, she said.

    "We have seen an increase in considerably younger customers," said designer Dennis Basso, who operates Manhattan and Aspen, Colorado stores under his name and sells at Saks Fifth Avenue. "Fur has become a mainstream part of fashion."

    Neiman Marcus, which caters to people with average annual incomes of about US$190,000, posted a 8.4 per cent comparable sales gain in November, helped by rising fur sales including US$50,000 sable ponchos.

    Terry Thornton, vice-president who oversees merchandise for bridal, coats and furs at Neiman Marcus said: "We have seen an increase in fur business."

    Neiman Marcus Chief Executive Burt Tansky said in a December 1 conference call with investors that "ponchos and fur-trimmed accessories are selling very well."

    Bloomingdale's, owned by Federated, is selling US$2,000 beaver jackets with fox-fur collars and US$500 Andrew Marc down jackets with fur collars.

    "The customer that's coming into our store really looks to us for fashion and quality," said Denise Filchner, vice-president for fashion merchandising at Federated Merchandising Group in New York.

    Less-pricey chains such as Sears are promoting furs and faux furs to last-minute holiday shoppers. Sears said cardigans with fur collars are selling well and JC Penney expanded its fur selection to include a US$70 rabbit fur poncho.

    "It's a love affair with fur," said Juanita Fields, fashion director for Sears. "You can get great faux fur that looks like the real thing."

    Shares of Dallas-based Neiman Marcus fell 27 cents to US$72.55 in New York Stock Exchange composite trading on December 23. Neiman Marcus stocks have risen 35 per cent this year. Cincinnati-based Federated fell US$1.58 to US$55.24, Hoffman-Estates, Illinois-based Sears fell 80 cents to US$51.50 and Plano, Texas-based JC Penney fell 90 cents to US$40.

    Luxury retailers are posting bigger sales gains during the holiday season than discounters, whose results have been hurt by slow job growth and rising energy prices. Wal-Mart Stores Inc, whose average customer earns US$40,000 a year, had a less-than-forecast 0.7 per cent gain in November.

    The International Council of Shopping Centres forecast same-store sales in November and December will rise to 3 per cent, lower than the gain of 4 per cent a year earlier.

    
(Source: China Daily/Steve Matthews and Josh Fineman)