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U.S. Retail
By Lara Ewen
After holiday sales numbers were tallied, retailers allowed that while the 2015 holiday wasn’t a complete win, it ended on an overwhelmingly positive note. Sales and traffic were modestly up in most areas, helped by the success of lower-priced fashion items such as the stretchable Paris bracelet of Swavorski® elements and moderate designer lines such as Alex and Ani. Color and bridal sold well. Overall, retailers were confident that 2016 would bring improving sales, higher traffic and a continued undercurrent of cautious optimism for the future.
Several weeks after the 2015 holiday season wrapped up, stores were able to make a firm assessment of both the holidays and the overall year, and for the most part the numbers were good. “Christmas 2015 was better than okay,” said Hank Davis, owner of Davis Jewelers in Louisville, Kentucky. “We had a double-digit increase. We were trending that way for the year, but Christmas is its own entity. I would say designer brands are important, but it’s not just the brand, it’s the presentation. You want the steak and the sizzle. It’s about experience, and not just how you treat the clients. It’s about the overall experience.” Sales were also robust in the mountain states. “2015 ended well,” said Keith Hurdle, owner of Hurdle’s Jewelry in Boulder, Colorado. “We had a record year, our best year ever. It was 10 percent above 2014, and 2014 was our previous best year. It’s probably because of our push on social media, and because Boulder seems immune to economic woes. There’s a lot of tech here. That said, we didn’t see high individual-sale dollar figures. During the holidays, our average sale was double what it used to be, at $2,000 and $4,000, but we didn’t see a lot of five-figure sales.” Stores credit increased traffic and the popularity of branded product for the improved bottom line. “2015 was great,” said Charla Hall, manager of Baker & Baker Jewelers in Marietta, Ohio. “We had more transactions than in the past due to brands like Alex and Ani, and our final numbers were up, so we are happy with how 2015 ended.”
Unfortunately, not all stores saw record numbers. “I will say in terms of the year, things were quiet,” said Ryan Krasner, vice president and marketing director at Harold Steven’s Jewelers in San Diego, California. “Our December wasn’t as strong as the previous year, but we had a better November. Some things came in last minute, but some of our existing customers didn’t come back, or they spent less.” Additionally, however successful 2015 was, some retailers had concerns about the coming year. “2015 was robust,” said Joe Strong, co-owner of Waterfall Jewelers, with two locations in the Detroit area. “One location had its best year, both saleswise and in terms of traffic. The other location was about the same year on year. But I think 2016 is kind of scary. For my store, I expect an increase again, but with the political climate and possibility of terrorism, we could be one terrorist attack away from the stock market going down. But as long as nothing dramatic happens, then the year should be okay. But it’s a little scary, just like 2001. You never know.”
One of the big stories moving forward was the success of colored gemstone jewelry, although semiprecious generally sold better than precious. “We don’t sell rubies and emeralds very well,” said Davis. “But sapphires and semiprecious sell well.” Some stores are glad to find new focus on color. “Overall, 2015 was a good year for colored stones,” said Krasner. “We saw a slight increase for nice colors in the right design. We are a heavily bridal store, so I can take a little hit on the bridal, but we need to increase in fashion.” Still, some stores were having problems selling more expensive colored pieces. “Color is doing very well, and we’re doing more outside the three majors,” said Hurdle. “Tourmaline is doing well for us in a variety of colors. I’m a fan of color, but sales are about price more than anything else. Ruby, emerald and sapphire have gone up so fast, it’s hard for people to look at a small stone and spend money on it. I hear a lot of the finer material is going to China and that drove prices up. But that’s just hearsay.” Other stores are finding real success with affordable fashion lines. So much so, in fact, that it’s been hard to meet demand. “We have been trying to restock Alex and Ani, but they are out of so much that it has been a bit of a battle,” said Hall. “But we aren’t selling beads much, and more people are coming in for self-purchases over gifts.” Strong agreed. “We’ve carried Alex and Ani for a year and a half,” he said. “In December 2015, we sold about 4,000 Alex and Ani bracelets, as well as Paris bracelets, and that’s nice because it helps with the slumping sales for Pandora.”Article from the Rapaport Magazine - February 2016. To subscribe click here.
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