Weak dollar squeezes rug importers
Lissa Wyman -- Furniture Today, January 19, 2004
ATLANTA — The weak dollar is putting price pressure on rug importers. While most are trying to hold the line, some inevitable increases showed up at last week's Atlanta International Rug Market.
With the euro at record high levels, the squeeze is particularly affecting vendors importing product from Belgium and other European Union countries.
Steve Mazarakis, president of Hellenic Rug Imports, summarized the situation: "The dollar stinks."
Yet importers are reluctant to raise prices.
"We're trying to hold the line, and our suppliers are certainly cooperating with us," said Charley Peck, president of Trans-Ocean. "At this early stage of recovery, no one wants to even think about price hikes. Any increases will be primarily at the promotional level, where margins are very thin."
John Shepherd, chairman of 828 International Trading, noted that monetary fluctuations are nothing new.
"We're concerned about the current state of the dollar, but we believe it will strengthen later in the year," he said. "Meanwhile, we're not sitting on our butts in terms of product introductions. We're blowin' and goin.'"
Leon Capel, president of Capel Inc., said the company is working with sources "and trying to hold the line on prices." Capel, well known as a U.S. manufacturer of braided rugs and an importer of hand-tufted and hand-knotted products, is undaunted. The company introduced seven machine- made groups from Belgium and England.
It's not just the dollar. Prices of raw materials, particularly wool, also are rmoving up.
"But that may not necessarily be bad for business. It may be an incentive to buy now before prices rise further," said Alex Peykar, a principal of Nourison.
