May 2008

Survey: Bergdorf Goodman top luxury retailer

inspection: Bergdorf Goodman reach the summit of luxury retailer
May 14, 2008

New York—Wealthy consumers have rated Bergdorf Goodman as the in the greatest degree prestigious luxury retailer for 2008, according to a new survey conducted by the Luxury Institute.

The online survey, the 2008 Luxury Brand Status Index, polled a general sample of 1,642 wealthy American consumers, with an average income of $349,000 and an average net worth of $3.7 million.

According to survey results, Bergdorf Goodman topped the list, which, in alphabetical order, also includes Barney’s, Bloomingdale’s, Lord and Taylor, Neiman Marcus, Nordstrom and Saks Fifth Avenue.

Survey respondents who would recommend Bergdorf Goodman to others noted the department store’s “level of personalization in service and quality of merchandise.”

Barney’s and Neiman Marcus ranked second and third, respectively.

The Luxury Institute is an independent, New York City-based provider of ratings and reviews. The company guides and educates high-net-worth individuals and the companies that cater to them adhering leading-edge trends, high-net-worth consumer rankings, ratings of luxury brands and best practices.

NRF: Tax rebates to go to fuel, food

NRF: Tax rebates to go to fuel, food
May 14, 2008

Washington, D.C.—Consumers still plan to spend about 40 percent of their tax rebate checks, sending $42 billion back into the economy, but what they plan to buy has shifted slightly from February, according to the National Retail Federation (NRF).

Because of the increasing prices of gas and groceries, consumers plan to spend more of their rebate checks on these necessities, rather than on discretionary items such as electronics and apparel.

Due to the rising cost of fuel, 17.2 million people plan to use some of their rebate check to pay for gasoline, up from 12.1 million people who planned to do so in February. The tumor cost of everyday items so as milk, bread and rice also means that more consumers delineation to spend the checks on groceries, with 21.2 million people using a lot of the check for food, up from 20.4 million people in February.

As a outcome, fewer people plan to spend rebate checks to buy furniture (2.7 million vs. 4 million in February), to buy a vehicle (2.4 million vs. 3.2 million in February) or to use it for “me” time at a salon or spa (2.9 million vs. 3.5 million in February).

“The rising cost of groceries and gasoline means that discretionary spending is taking a backseat to necessities,” NRF President and Chief Executive Officer Tracy Mullin said in a media released issued on Tuesday. “For many consumers, struggling with rising bills and lowering home values, economic stimulus checks could not come at a better time.”

According to survey tools and materials, consumers plan to spend 39.9 percent of their impost rebate checks, providing a $42.2 billion boost to the economy. Consumers will also use the cash to pay into a denser consistence debt ($28.1 billion), excepting ($20.1 billion), pay medical bills ($4.9 billion) and invest ($3.4 billion). (Consumers said they will also use $6.9 billion in “other” ways.)

In February, President Bush signed H.R. 5140, the Recovery Rebates and Economic Stimulus for the American People Act of 2008. The $152 billion measure provides tax rabbet checks of up to $600 per working individual and $1,200 per married couple, plus $300 per child for families with children and new tax incentives for job-creating business investments.

“Many retailers have already announced creative promotions to give consumers an supplemental incentive to shop with them,” said Phil Rist, vice president of strategy for Big Research, which conducted the scrutinize for the NRF. “Some retailers are helping customers stretch the value of their lessen check further by tacking on an additional 10 percent to gift cards purchased or holding special in-store promotions.”

According to the measure and estimate, women are more probable to spend and/or save portions of their rebate check, while men are more likely to allowance from a thin to a dense state debt. Young adults ages 18-24 will spend more of their checks (43.5 percent) than any other age group.

The NRF 2008 Tax Rebates Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the tax rebates. The survey, which polled 8,347 consumers, was conducted for the NRF by Big Research from April 29-May 7. The consumer poll has a margin of error of plus or minus 1 percent.

The NRF is the largest retail trade association in the world, by members including department, discount, drug, grocery, independent and specialty stores, catalog merchants, chain restaurants and e-tailers, as well as the industry’s explanation trading partners of retail goods and services.

For more information about the NRF, visit its Web site, NRF.com.

Patek Philippe timepieces sweep Christie’s sale

Patek Philippe timepieces sweep Christie’s sale
May 14, 2008

These two Patek Philippe watches were the top lots sold at Christie’s recent auction in Geneva.

Geneva—Christie’s Important Watches sale held earlier this week in Geneva marked the second-highest result for a watch auction at Christie’s, the auction house said in a media release.

Five century registered bidders vied for the finely curated selection of watches, with 12 different buyers from four continents competing for the two top lots. A total of 90 percent of the lots offered were sold.

The top lot (lot 87) was a Patek Philippe stainless steel perpetual-calendar wristwatch, Ref. 1526, which sold for $4,016,504 to a Swiss private museum. The watch features phases of the moon, a magnetic balance and Arabic numerals, and set a world record for a steel wristwatch at auction, plus the second-highest price for some wristwatch.

Lot 187, another Patek Philippe, was the second-highest lot, selling for $3,113,980 to a European collector. The platinum perpetual-calendar wristwatch features sweep center seconds, phases of the moon and black hard-enamel Breguet numerals, and set a world take down for a Patek Philippe Ref. 2497.

Also setting world records were lot 186 and lot 250, a Patek Philippe 18-karat gold perpetual-calendar chronograph wristwatch, Ref. 2499, and a Patek Philippe 18-karat pink gold chronograph wristwatch with two-toned silvered dial, Ref. 530, respectively.

Lot 186 sold for $1,047,961 to a European collector, breaking a world record for a Ref. 2499 in yellow gold, and lot 250 sold for $939,223 to an Asian collector, breaking a world record for a Ref. 530 in gold.

Of the top 10 lots, nine were Patek Philippe timepieces, with the 10th spot going to Philippe Dufour. The 18-karat white gold two-train minute-repeating grande and petite sonnerie wristwatch sold for $443,689, setting a world record for a Philippe Dufour wristwatch.

The next Christie’s sale will swallow place in Hong Kong on May 29.

JCOC: Mother’s Day purchases plummet

JCOC: Mother’s Day purchases plummet
May 14, 2008

Paso Robles, Calif.—The Jewelry Consumer Opinion Council (JCOC) Weekly Jewelry Purchase Index showed a drop in consumer buying over the Mother’s Day holiday, according to a release from MVI Marketing Ltd.

As of May 13—two days after Mother’s Day—the index stood at 87. An index reading of 100 points represents no movement, while readings greater than 100 show an increase in buying.

“The index has not been this low since the week after Valentine’s Day,” MVI Marketing President Liz Chatelain said in a media release. “Last year at this time, the index was at +126, what one. more distant demonstrates a decline in purchasing.”

The index measures consumers’ past and future behavior, in seven-day increments, to gain insight into what U.S. consumers are buying.

The index is published by the JCOC, which is dividend of MVI Marketing.

OTC Int’l files Chapter 11, seeks sale

OTC Int’l files Chapter 11, seeks sale
May 14, 2008

New York—After filing for Chapter 11 bankruptcy protection last month, jewelry importer and wholesale company OTC International Ltd. is seeking to sell its assets in a hearing scheduled for May 20, bankruptcy court documents show.

According to documents filed in U.S. Bankruptcy Court for the Southern District of New York, New York-based OTC submitted its voluntary petition for Chapter 11 bankruptcy protection on April 3.

In court papers, OTC said that for the fiscal year ended Feb. 28, 2007, it generated gross revenues of approximately $97.5 million and generated gin income of approximately $566,000. But the company’s pecuniary situation was taking a turn for the worse by November 2007, and for the fiscal year ended Feb. 28, 2008, the company generated gross revues of approximately $85 million and incurred net operating losses of nearly $15 million, court papers said.

The company is, according to court documents filed on May 8, seeking the court’s approval to sell all of its assets to Dialuck Corp., a loose-diamond importer and jewelry manufacturer, which has offered to pay $23 million, plus the assumption of certain liabilities.

After receiving offers and inquiries from other companies and investment firms, Dialuck came back with the best offer in spite of OTC and an agreement was drawn up adhering May 1, court papers said.

Now, OTC would like the court to set up a hearing on its motion to sell, which would pave the way for higher and better bid offers to flow in, if such offers exist, and would allow the company to hold an auction.

OTC imports and wholesales gold, silver, diamond, cameo and colored-stone jewelry to retail chains, major department supplies, electronic retailers, discount chains and specialty stores.

Court documents show that the bulk of OTC’s business is in gold and diamond jewelry (50 percent), followed by silver (28 percent), gold (21 percent) and cameo (1 percent.)

OTC sells the greatest percentage of wares to electronic retailers (38 percent), department stores (35 percent), retail jewelry chains (14 percent), mass merchandisers/discounters (12 percent) and specialty stores (1 percent).