Annual Report 2009 - Ecco

14
The Markets in 2009
The market conditions for global shoe sales
have been very challenging throughout 2009.
Although a degree of recovery was experienced
in certain markets during the year, the
negative impact of the economic crisis led to
a slowdown in all ECCO’s sales regions.
The main challenges included lower consumer
traffic and spending in the markets, cash-flow
constraints and fluctuating currencies.
In particular, the U.S. showed a significant
downturn in consumer spending. The effects
of the financial crisis not only led to lower
spending but also to decreased average sale
per customer.
ECCO’s Annual Report 2009 / The Markets in 2009
ECCO recognised the same pattern in the UK
where the market has also been very tough
throughout the year.
Russia and the Ukraine were also deeply
affected by the crisis. The local currencies
of Russia and the Ukraine lost significant
ground against the euro. Both currencies
fluctuated with losses of 30% - 50%
against the euro compared to the
beginning of 2009.
On the positive side, markets such as
Scandinavia and Asia recovered in the third
quarter and increased sales by the end of
the year.
Composition of sales by geography in 2009 (in %)
Europe Central 35.3%
Europe West & East 38.9%
Americas 17.0%
Asia/Pacific 8.8%
17.0%
���Europe Central ���Europe West & East
���Americas ���Asia/Pacific
38.9%
The most positive highlights of the year were
in Poland and Canada. The store expansion
strategy of recent years was the main reason
for record growth in these markets in 2009.
Another highlight from the smaller markets
was ECCO Italy, which continued to expand
its business in a very competitive and difficult
market situation.
By the end of the year there were some
indications that the economy might stabilise
further, but ECCO expects that the market
situation will still be difficult over the next
few years.
8.8%
35.3%