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U.S. Retail
By Lara Ewen
U.S. jewelry stores continued to either succeed or struggle, with little in between, as post-election consumer attitudes, mall traffic issues and store closures affected different areas in the country in starkly different ways. The industry is also being affected by an increased desire for custom work and flagging interest in once-popular lines. That means even stores that are flourishing don’t have the same need for stock inventory as they did several years ago. As summer loomed, there was no clear consensus regarding what the rest of 2017 might hold and store owners felt that retail overall had become as unpredictable as the political landscape.
In some small towns, business has been extraordinarily good. “We’re up for the year and continuing to grow,” said Scott Stambaugh, owner of Stambaugh Jewelers in Defiance, Ohio. “We have stayed steady and have looked at 20 percent growth every year over the past few years.” Stambaugh said that in a small town such as his, with only 17,000 people, his is one of only two independent jewelry stores in the community. “We have a nice storefront and we look like we’re in the jewelry business, plus we’re in the downtown location,” he said. “But also, it’s all about people. Retail isn’t difficult to understand, but it’s hard to do. You have to be personable and care about your customer.” The number of store closures in the past two years has certainly been a bittersweet boon for independent jewelers who hoped to expand their client base. Nancy Keczkemethy, gemologist at Bentley Diamond Importers in Wall Township, New Jersey, said that 2017’s numbers so far were stronger than those of 2016, and the recent retail culling was part of the reason why, though not the whole story. “Part of it is that the election is over and customers feel more stabilized and comfortable,” she said. “And also, quite a few of the smaller mom-and-pop places in our region closed, so the small jobs and repairs have come to us.” Keczkemethy also said that her store does a lot of CAD and custom work, which is a big draw in her area. “People see a designer piece and they want that look, but they can’t afford that mounting,” she said. “We can create that for less, and we’re able to offer more, too. We can have a custom piece in our hands in a week.” In Pocatello, Idaho, Lance Buttars, owner of Molinelli’s Jewelers, also felt a boost in the aftermath of the election. “We’re still up for the year and we’re optimistic,” he said. “We had a very good February and March and bridal carries the day. I think that the election being settled has something to do with it. This state is Republican, and though my town is about half and half, the people who are liberal are going nuts, because they’re not shopping. They’re thinking Armageddon or something.” Buttars said that despite his success, not every product is doing well. “Pandora is dead,” he said. “We kicked them to the curb a few years ago. And now Alex and Ani is also starting to go down. It’s one of those fads that plays out.”
Not all retailers were doing well, though. Some store owners saw business drop after the election, although they were loath to blame politics on the decline. “Our business has been down since the election,” said W. Mark Michaels, co-owner of Michaels Jewelers, with ten fine jewelry stores in Connecticut, and an additional 11 Pandora stores in Connecticut, New York, New Jersey, Arizona and New Mexico. “I’ve talked with a lot of retailers and it’s a real mixed bag. One of the guys was from Mississippi and said he was doing fine, but in my backyard, in the Northeast, it was a weak Christmas, and Valentine’s Day was also challenging. And I don’t like to make ‘one shoe fits all’ statements, but the election was one of the reasons for the downturn, as are the mall environments, which are struggling with traffic.” Political concerns were also impacting the West Coast. “Nobody’s spending and nobody’s feeling secure with our boy in office,” said Russ Varon, owner of Morgan’s Jewelers in Torrance, California. “And also, it costs so much to live, and everybody is so casual here, because we’re in a beach area. Our Christmas was a little weak, but I was still up 8 percent for the year. Then in February we went flat. Even my bridal business is off. As much bridal as I have, 75 percent of the rings I sell we end up having to custom make. I had a rep tell me that nine out of ten stores in Chicago told him they weren’t even going to the shows.”Article from the Rapaport Magazine - June 2017. To subscribe click here.
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