In
the aftermath of the holiday season, reports indicate that success was measured
as much by geography as the stock market. Some stores were wildly successful,
while others saw more modest sales. Fortunately, general reports were that
holiday 2017 was a marked improvement over 2016, which is a move in the right
direction. For 2018, store owners are looking cautiously ahead to a year that
is expected to look either encouragingly or disappointingly similar to 2017,
depending on perspective.
Festive
figures
In
the tech-heavy city of Boulder, Colorado, Keith Hurdle, owner of Hurdle’s
Jewelry, was over the moon about his 2017 holiday season. “[The holidays] were
fantastic,” he said. “We were 45% over 2016.”
Hurdle noted a lot of
self-purchasing early in December, and said sales had continued through the
month. “I’m assuming it’s because the economy and the stock market are good.
Our entire year was up 23%.”
Hurdle’s celebrated its 70th
anniversary in 2017, and advertised extensively because of that, which also
helped drive purchasing. “Customers want bigger-ticket items, and people
appreciate nice color,” said Hurdle. “And traffic is up a little bit, but
individual sales are higher than before.”
Boulder’s economy, which is
heavily tech-based, may be part of the reason. “The new Google campus is being
built here, and Twitter has a couple of floors here. We have the younger,
hipper crowds,” the jeweler explained.
In south Florida, sales were
more modest.
“Christmas was a little slow,” said H. Bredemeier, owner of H
& H Jewels in Coconut Grove, Florida. “I was expecting gangbusters. But my
clients were just buying less. And I have some other factors. We’re in the
middle of some construction, and there was the hurricane hangover, so business
wasn’t normal for a month or so.”
Bredemeier said he wasn’t
certain why business was soft. “Are people eating out more?” he asked. “Yes,
but my client isn’t concerned about what they’re paying for steak. I’m not
Zales-level. The stock market is killing it, so maybe people wanted to keep
their money in the market. Or people are feeling weird because our president
keeps tweeting weird things. The jewelry business is emotional.”
The middle of the country saw
solid traffic but smaller sales.
“We were busier people-wise, but the dollar
amount for each transaction was lower than in years previous,” said Charla
Hall, manager of Baker & Baker Jewelers in Marietta, Ohio. “Some of the
people who usually spent $10,000 were spending $5,000 instead.”
Hall said one factor might be
geography, because her area relies on the oil and gas industry. Another factor
might be a consumer move toward experiential purchases. “One of the categories
on wedding registries now is ‘experience,’ which I’ve never seen before,” she
said. “And I do think people are traveling and going to events now. Technology
is making people more aware of places to go.”
‘Looking
good so far’
Bredemeier
said 2018 had begun on a positive note.
“January is looking good so far. I’m
actually quasi-impressed. I can’t sing a song of victory yet, but so far, it’s
been okay,” he commented.
Hurdle was even more
optimistic. “We’ve already beat January, year on year,” he said. “So we don’t
have a challenge, except to figure out why people keep coming in.”
For Hall, the year ahead is
about celebration. “This year will be our 100th year,” she noted. “And people
want to get made over when they come in. So it’s important to separate yourself
from chain stores by giving that experience, because relationships are what get
you through the slow times and the fast times.”
Article from the Rapaport Magazine - February 2018. To subscribe click here.