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Mild weather dampens A/W 2006/07 apparel season

30
Mar '07
German consumers' expectations of a strong and sustainable economic upturn were restored the end of the first quarter of this year. Good news from the job market has been responsible for the building optimism in the past couple of months.

While uncertainty over the impact of the January 1st VAT increase had a negative effect on consumers' propensity to buy in February, Germany's GfK Group reported that March saw a revival.

The effects of VAT increases on prices were less severe than first feared, however, preliminary German retail sales data for January appear to be weaker than analysts predicted.

Autumn/Winter 2006/07 apparel season was generally disappointing, with mild weather conditions and winter apparel difficult to sell. Despite frequent sales discount retail stocks remained high prompting some retailers to bring forward their spring 2007 range to sell among current winter offerings.

The mild weather also affected sales of heavier weight wool knitwear and traditional wool woven apparel. Casual, lightweight and innovative wool and wool blend apparel sold well though, especially trousers, jackets, short coats and dresses.

Australian Wool Innovation Limited


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