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U.S. Retail
By Lara Ewen
This year’s Vegas show season promises to be exciting, and busier than it’s been in a long time. Even store owners who haven’t been to JCK or Couture in years are sending representatives, and buyers are looking for new merchandise to fill out their display cases and appeal to buyers. But that doesn’t mean people will be coming with blank checks. There’s still a lot of caution in the air, due in part to a winter that took too long to end and a customer base that’s still checking prices online before making a buying decision. That said, May retail sales were healthy, and hopes are high, if reserved, that the rest of 2014 will benefit from a more stable economy.
2014 got off to a sluggish start for some businesses, and most of those businesses blame a rough winter, which slowed sales and traffic through March. “January, February and March weren’t particularly busy,” said Bob Moeller, president and director of sales at R.F. Moeller, with three stores in Minnesota. “And even though the stock market is performing, people aren’t super comfortable. Business in medium-priced goods isn’t particularly robust, and yes, weather was a factor, with the extreme cold and a ton of snow. We didn’t have to close because of the weather, but it did affect the psychology of business and it dampened sales” because consumers were less apt to be out shopping. Even for those who had a decent first quarter, the weather took a toll. “Business is going well,” said Steve Samaras, owner and president of Zachary’s Jewelers, with two stores in Maryland. “We had our best January ever. In the first quarter of 2014, we were up 11 percent, even with a horrible March. That was all the weather. In the Mid-Atlantic region, when you get hit with a lot of snowfall, things tend to stop. But it wasn’t just the snow. It was dreary and it was cold. But in April, we were 50 percent up year on year. So I’ve got my fingers crossed for the rest of the year.”
In New Mexico, where winter should not have been much of a factor, Mike Butterfield, co-owner of Butterfield Jewelers, with two stores in Albuquerque, said that the bad weather on the East Coast affected his bottom line for the first part of the year. “We’re down by 6 percent for the year through April,” he said. “The biggest issue, without question, is that our advertising on the radio didn’t kick in until April 3 because the ice storms in Atlanta had a huge effect on the marketing group we belong to. That meant we lost about a month by the time we could get the ads out. But now, in May, we’re up over 2013 by 50 percent, year on year.” Of course, plenty of businesses were not affected by the weather at all. “Business is up in 2014 from last year by 2 percent to 3 percent,” said Debbie Berkowitz, co-owner of Glitters Fine Jewelry in Leawood, Kansas. “January and February were great. March? Not so much. Volume was way down. Then April was very good, and May is looking very busy.” Sales were also robust for Steve Quick, owner of Steve Quick Jeweler, with three stores in Chicago. “We are feeling real momentum in 2014,” he said. “We are definitely up in all of our locations, and it feels like it will continue throughout the year.”
For Butterfield, who hasn’t been to Vegas in six years, the shows are not the same as they used to be. “The trade shows have lost some of their allure,” he said. “We belong to a buying group, and some of our vendors are at those shows. But it’s not always easy to get to the shows, and we’re a diamond shop, not a colored stone shop. We don’t go to Tucson, and we don’t go to New York.” Attending the shows is still important, however, for buyers looking to find new product. “If you’re going to be a fashion-forward store, you need to present certain lines to set you apart,” said Samaras. “We’ve already been to InStore and we’ll go to New York. We think trade shows are important. I like to touch and feel.” Other people want to maintain relationships and see merchandise in person. “We are going to Vegas, but we almost didn’t go this year,” said Moeller. “We don’t have such a need. But you have to know where things are headed in the industry, and we like to see things and look at them.” For many store owners, Vegas is still the most important event of the year. “We never miss Vegas,” said Quick. “Our entire merchandising plan is centered around our trip. We buy for now and for the holidays. A marathon Vegas trip and fill-ins as needed take care of most of our merchandise needs.”Article from the Rapaport Magazine - June 2014. To subscribe click here.
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