European Stars And Stripes (Newspaper) - March 27, 1988, Darmstadt, Hesse                                Page 18 the stars and St Lope business news Dollar drop spurred by hike in Oil prices die Dollar dipped slightly on International currency markets in the last week in reaction to a Sharp i in Oil prices wiping out gains thai mulled from revised figures on the . Econ omy Oil Price hikes generally drive he British Pound higher and the Dollar lower their Rise to nearly ji7 a barrel Early in the week served id cancel out news that he . Gross National product the widest measure of a nation goods and services grew a brisk 4.8 percent last year. Earlier government estimates had pegged the f in growth at 4.3 percent. If agreement can be reached at an upcoming meeting of inc organization of Petroleum exporting countries crude prices could jump Hill higher to Sib per barrel triggering additional losses for the Greenback. Few traders however by Al. Kolnicki believe inc open ministers will come la such a consensus. This was a one week thing one British trader said. I think Oil has peaked and is heading Back Down meaning Ine Market won t be paying any further attention to  also contributing to the Dollar s decline last week was the release of february figures showing a 0.9 percent increase in . Persona income and a 0.7 percent increase in spending. Traders in Frankfurt and London said any increase in. Spending represents bad news for the Dollar since icy suggest americans will continue to buy Large amounts of imports adding to the . Trade deficit. The Greenback also could be in for a Rocky time in the coming month if japanese Bankers begin Large scale Selling of the Dollar following inc Start of the new fiscal year in Japan on april i. Japanese Banks and insurance companies which have amassed huge stockpiles of dollars Over the last year could trigger a Sharp decline for the Buck it the expected Celt of take place. The Dollar is looking rather nervous Overall. There s the Rise in Oil prices of course bul the currency could really be Hurt if the japanese Start hooding dollars onto the markets a Lon Don trader said. The japanese have been fairly quid traders for the last three months or so a Frankfurt hanker said. I m expecting them to come in heavy Aitch the end of the month forcing the Dollar to about the 12d yen Mark Down from the 126 level we have now in Germany thai will mean a Dollar around  Marks maybe a Little  japanese Bankers and insurance fund Custodi ans have so far denied they plan any Dollar dumping. The Dollar should lose additional ground against the British Pound in inc coming week following Friday s release of England s Trade deficit figures. Britain which posted a current account deficit of 930 million pounds last month improved its Trade picture to a shortfall of around 400 million pounds according to inc figures released Friday. In its quarterly report to Congress last week the Federal Reserve noted that to sold off More than $4 billion in Weil German Marks and Japa Nese yen to support the Dollar in the three months ending Jan. 31 the largest quarterly transaction in eight years. The largest Dollar Purchase in the Days Fol lowing the Stork Market crash in october total de i billion. For the 12 months ending Jan. 31, the fed and the Treasury bought a Little More than 110.3 billion in the foreign Exchange markets to try to stabilize the . Currency. Cafes says retail sales reached new High in 87 b Charlie Bowden Munich Burner the depressed Dollar apparently steered Consumers in Europe toward their local exchanges last year to. Cafes Europe officials report a record retail year with increase of 20 percent or More in almost every sales category. Cafes Europe which operates More than 5.000 facilities in 10 countries broke the i billion Mark in retail sales for the third straight year and recorded its second consecutive year of significant sales increases. Officials last week reported thai total retail sales in Europe last year reached 51.36billion, a 20 percent increase. The retail sales picture pretty much described the rest of inc european exchanges year. Total direct sales which include food personal services and vend ing operations jumped 20 percent to s1.64 billion. Gross profit and net earnings both were up jsq4 Mil lion and $86.3 million respectively. Food sales which Are an increasingly higher proportion of the Exchange picture increased 25 percent to 1174 million. By companion food sales in Europe in fiscal year i9b4, before the Dollar s decline were jus Over $107 million. Burger King restaurants accounted for nearly $49 million of that Tola and resulted in estimated pay menu to local communities last year of More than s3 million. The Exchange has 27 Burger Kings open in Europe with another seven scheduled to open in the next year. On the Down tide the decreasing value of the Dollar drove personnel costs up 18 percent last year to 1325 million. By companion personnel costs in fiscal 1984 were 1209 million. While some of that increase can be attributed to a larger work Force officials say most of in has been the result of the Dollar s fall which dramatically increased the payroll Cost for those paid in local currencies. In the Pasler Exchange officials in Europe have attributed the rapid increase in sales to the equally rapid decline in the value of the Dollar against foreign currencies which in Lum brought customers Back into the exchanges to do Ribeir shopping. Worldwide the Exchange service reported Gumilar increases. Cafes recorded 15.9 billion in sales in 1987, a 13 percent increase with net earnings of s260 million up 14 percent the dividend that the Exchange service pays to the army and air Pom morale support fund also increased up 14 percent to j130 million. Credit shopping a played an Ever increasing role in the european Exchange customer s buying habit since the exchanges began accepting credit cards Over seas in july 1936. Although in effect for about half that year customers tallied $33,3 million in credit card buying. Last year however that amount jumped to $80 million while the increase was significant the Overall percentage of total sales remained 01 about the level initially projected 6 percent. Customer use of the deferred payment plan also increased last year up nearly 5 percent to about si40 million. That figure accounts for about 10 percent of total retail Sale in Europe. In Short roughly 16 percent of cafes Europe s sales last year were on credit. Historically cafes Europe customers have made Home entertainment the leading sales department and that continued last year. Home entertainment pre dominantly televisions Vars stereos and computers accounted for about 17 percent of the total sales practically the same share of the Market As 1986. Next came food Candy and snacks and Beer and beverages with about 7 percent of the Market each. While those proved to be sales leaders the greatest Market gains were in sporting goods a 52 percent in crease records recorded tapes and videocassettes 47 percent increase and military apparel i a 40 percent increase. Other departments up Sigil Mcanlly included jewelry gift Ware women s clothing and hardware and tools All with increases in soles of 30 percent or More. The Outlook for 198 8 also is bullish but the cafes Europe commander does t Force a repeat of he last two years. We see a real growth in i98s," said Brig. Gen. Joseph t. Ellis but i Don t think it s going to 20 percent probably much less than thai because we have a limited physical Plant and a limited customer base accepting thai growth will come As Long As the Dollar is Down Ellis plans to turn his attention toward the customer the physical Plant nod a pattern of expansion and renovation this year. The Exchange plans to invest some fio million in its capital improvement program to build new facilities and upgrade old ones. Cafes big gainers 39% 38% 37% percentages indicate cafes Europe Sains increases Between Lis Colyear 1966 and 1987. More Burger Kings Are scheduled to open More snorts stores and several new tines in food such As pizza mexican ice Cream and hot dogs in clothing several new boutiques aimed to specialized customers Are on tap plus a change in direction toward More clothing items bul it lower prices Ellis said. There Are tales out Flere that we had t been Cap Turing before he said citing the planned addition of boutiques aimed at expectant mothers and Young Chil Dren. Ellis who took Over leadership of cafes Europe in september said he realizes that customers Are Price conscious and he wants to be responsive to that. Ust year the exchanges began introducing several lines of less expensive clothing called extra value clothing and Ellis Wauls to continue that Irand for Spring for example european exchanges Are bringing in an additional Sto million Worth of extra value clothing. And of the 116 million Worth of infants and children s Wear on order about 80 percent of la Falls into the extra value category he said we re Irving to slay sensitive to our customers Ellis said. If their desires Are to have Low to medium Price Point clothing we re going to try to meet that  aside from expansion and renovation in House the Exchange probably will continue to Branch Oul into managing other morale support activities at the Community level. Cafes Europe already has an agreement \ with several communities to manage their local food service activities on a Io-50 Basic and most Likely will talc a look Al such activities at Bowling canlers audio photo clubs and local sports retail acl Vilics Ellis said. White he Issue of who will run the army s liquor stores remains at the congressional and army level cafes Europe has had preliminary meetings with army and air Force officials in Europe about the possibility of buying out the audio video stores. The Exchange already has signed agreements to Lake Over two such facilities in Karlsruhe and Bamburg bul those were at the request of the local Community Ellis said. Bul Ellis does t consider such a move necessarily 5  thing to remember a that no matter who runs it the Money goes bade into mar he said it should t be an Advenia  if it s done he Taid in � done for the Mutual Benefit of that Community commander and that customer Oul there