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Gallery owners have been slowly feeling the effects of the downward trend of the economy. The events of September 11th have made matters worse, although it’s still difficult to say if the current political situation will have serious long-term effects on spending. Show promoters and gallery owners agree — it’s too soon for the craft world to despair. In fact, there are some promising signs that 2002 should be a good, though not record-breaking, year for the sale of American craft.
Craft sales in 2001 were slower than projected for many galleries, even before Sept. 11, but most gallery owners say sales were not far off from 2000. Lucy Lacoste of Lacoste Gallery in Concord, Mass., says that sales typically underperform the previous year in six out of 12 months, and overperform in the other six, and 2001was no exception.
At OOP! gallery in Providence, R.I., owner David Riordan says both his main store and his satellite location have been meeting their sales goals. For many galleries, though, this may have been the first year in the business’s history in which sales did not improve over the previous year.
The current world situation may have made matters worse, but many gallery owners feel the effect has fortunately been temporary. In fact, the Commerce Department reported on Nov. 14 that retail sales in October rose 7.1 percent. “To revive sagging sales, retailers have heavily discounted merchandise and offered other incentives,” reports Associated Press writer Jeannine Aversa.
Lacoste Gallery felt the effects of the Sept. 11 attack — for a few days after, the store was empty — but by the following weekend, things began to bounce back. Lacoste says she sold more large-ticket items than she expected in the early fall, and that, barring another disaster, she expects 2002 to be stable.
Lacoste isn’t the only one who has seen an increase in sales of big-ticket items. In fact, this seems to be one important way in which craft sales are bucking general trends. Although government reports indicate that “luxury spending” is on the decline, many gallery owners report that higher-priced items (all galleries define this category differently) have been more active than items in the middle range.
At Sculpture, Objects and Functional Art (SOFA) Chicago, a showcase of galleries selling high-end crafts, President Mark Lyman says that many galleries had better sales than they anticipated, considering the Oct. 5-7 show dates. Most of the galleries that did well at SOFA were selling “important pieces” commanding six figures.
At OOP!, Riordan reports a surprising number of orders for furniture in the $2,500 to $6,000 range, while sales of $500 to $1,000 craft items have declined.
Jewelry is another luxury item that gallery owners report to be selling well. Owners are surprised and interested by this trend, though it didn’t keep Lacoste from having to cancel some orders for higher-priced jewelry.
Some gallery owners speculate that the demand for higher-priced items may be a temporary result of the state of world affairs, and that customers have been motivated to buy sooner so they can enjoy their purchases now. A more long-term reason that crafts may be bucking the trend away from the reported decline in “luxury spending” is the perceived added value of handmade items. “To some extent, furniture is a necessity, but a $6,000 dining room set is not a necessity,” says Riordan. “There’s not one thing that anyone needs in our store or, really, any craft store, but it makes you feel good. And people need to feel good.”
Scott Krugman, senior director of public relations for the National Retail Federation, the world’s largest retail trade association, doesn’t find it surprising that crafts are bucking some of the spending trends. “People are looking to give meaningful gifts of lasting value. [That trend] would put craft dealers in a more competitive position,” he says.
Sales of moderately priced items show some decline
Despite the positive outlook for high-priced items, the decline in sales in the mid-range, where most artists sell most of their work, is sobering. Betsy Kubie, director of Crafts America, the organization that sponsors the Westchester Craft Show and the Washington Craft Show, says that although the show was up from last year at the gate, many exhibitors at the Westchester Craft Show reported sales that were off by as much as 15 percent from last year. “I’d say that most people who came would buy something, but maybe not as much as usual,” says Kubie. Kubie was hoping that November’s Washington Craft Show (which had not yet taken place at press time) would fare better than the Westchester Show, and like many gallery owners and craftspeople, she was hoping that sales would pick up over the holidays.
But, the late-October report of the National Retail Federation showed a drop in the growth forecast for the fourth quarter of 2001 — from 4 percent in 2000 to 2.2 percent in 2001. This means that the NRF is predicting growth, but at a lower rate than in previous years. In 2000, the growth rate was 3.9 percent over 1999. A typical growth rate in a good year is 6 percent to 7 percent.
Resources
National Retail Federation
(202) 783-7971 or
(800) NRF-HOW2
www.nrf.com
NRF’s mission is to conduct programs and services in research,
education, training, information technology, and government affairs to protect and advance the interests of the retail industry.U.S. Department of Labor
Bureau of Labor Statistics
www.bls.gov
The Web site features the latest economic releases, figures on unemployment, occupational outlook reports, and other information. (Occupational outlook reports will be more useful to some media than others — there’s a separate category for jewelers, but most craftspeople are lumped in with designers.)Holiday sales will be a bellwether for wholesale buying in 2002
Although many galleries were modifying their spending in the fall of 2001, most were waiting until after the holidays to seriously reassess their buying. In fact, slower-than-expected holiday sales at galleries will probably have more of a dampening effect on wholesale buying for 2002 than any other factors to date. Artists who want to anticipate their own sales for 2002 would do well to find out how the holidays went for their wholesale clients.
As many craft galleries and artists have already proven during the economy of the late 1980s and early 1990s, weathering tough economic times is certainly possible. A strong business plan, an uncompromising look at reality, and a focus on the big picture are all-important.
Equally important is a renewed focus on what sets galleries apart from the home or gift stores that make up their competition. Most continue to move away from production-oriented pieces to one-of-a-kind items in which the hand of the maker is readily apparent. More than ever, gallery owners are reluctant to take chances on work they’re unsure of — they want to buy only the highest quality work they can find, from both a design and construction standpoint.
According to Tom Riley, owner of the Riley Hawk Gallery in Seattle, Wash., “At the lower end, people feel the need to be cautious (in a tough economy). We’re willing to wait. ... We know from experience that those who are cautious now will be confident tomorrow. In tough times, the best work will continue to sell.”
Lacoste is also optimistic about the economic future of craft. “If the world situation can stay on an even keel, crafts are in a strong position. People are yearning for value, humanity, things that have the touch of the artist. These pieces have the ability to transcend. They have a human connection,” she says. “If it’s real and honest, the public will respond. They’ll eat it up. That has been the value of handmade objects since the beginning of time.”
