Early reports from jewelry retailers showed robust holiday results. Still, some stores said the final tallies would be anyone’s guess up until the last minute. The extra December weekend before Christmas was expected to boost last-minute shopping, but undependable weather and potential market fluctuations made forecasts difficult. Stores that worked on online outreach and year-round efforts to draw in customers were poised to fare best.
The New York perspective
In New York City’s diamond district, sales were steady, but traffic was unpredictable.
“I don’t want to say that Santa has died, but relying on the holiday season isn’t enough,” said Roman Malayev, owner of Forever Diamonds NY in New York. The 47th Street block, where his store is located, is facing traffic problems, he continued. “We’re an old industry, and we’re all just waiting for the door to open. Some stores are relying on holiday traffic. This used to be the time when jewelers would make their money and be the busiest, but it’s not like that so much now.”
Relying on holiday sales has been problematic, partly because jewelry stores have been competing with other businesses for December dollars.
“The holidays aren’t just about jewelry,” Malayev pointed out. “A lot of people are trying to buy a lot of things. So during the holiday, it’s more price-driven.” That’s why he has worked to appeal to a new, younger customer and court that client year-round. His store’s Instagram account, which targets millennial shoppers, has more than 430,000 followers — a crucial part of his outreach, he said. “My focus and drive is full-year, and making rings for clients all over the world. For that, we use social media.”
Reason to rejoice
Elsewhere in the country, holiday sales were strong, and started earlier than usual.
“It began two or three weeks before Thanksgiving,” reported Benny McNair, owner of McNair Jewelers in Gadsden, Alabama. “Then we got a lull, and after the lull, it seemed to pick back up.”
He said his store was doing a lot of repairs in addition to the holiday sales, and that he was happy for the extra weekend before Christmas this year. “Some sales depend on the people waiting on that Friday paycheck,” he noted.
Holiday buying also got off to a good start for Eric Wagner, co-owner of Showcase Jewelers, which has three stores in Kansas. “Early holiday sales are doing great compared to last year,” he said. “I had been stoked about the season, but being in an oil community, and with the recent sharp drops in crude prices, I was a bit nervous.”
Wagner expressed hope that this year would be better than 2017, in part because circumstances in his area were somewhat different. “Last year, December was not so good here, with a competitor having a moving sale, so I’m hoping for better numbers this year even though oil prices will give us a struggle.”
All in all, McNair felt positive about the season. “It’s a better holiday season than 2017,” he asserted. “Traffic seems to be decent, and we’re getting a lot of new customers from surrounding counties.” While he no longer relies on television or newspaper ads, he has found radio to be a big boon. “We do a little radio advertising on a station that spins the oldies,” he said. “It caters to the customers that have the money.”
Challenges on the horizon
Wagner predicted challenges ahead for diamond retailers.
“The industry is going to struggle,” he said. “The customer base is being spread out over the mall, the independent, the department store, Amazon and the internet. Sometimes I’m not sure who doesn’t sell jewelry. So I’m thinking we’re going to lose a lot of independent stores in the industry next year.”
Still, he was optimistic. “The industry needs to do some promoting and help the independents out. There’s big money still in buying [over the counter] and the estate side of jewelry. So let the games begin!”
Article from the Rapaport Magazine - January 2019. To subscribe click here.