As the weather began to cool, jewelry sales stabilized and
store owners started to look optimistically toward the fourth quarter. Despite
a rocky year, which brought with it political turmoil, uneven sales, wobbly
traffic figures, and even bouts of historically bad weather, retailers were
quick to point out that sales were in line with predictions, or only slightly
off. If the upward trend holds, the 2017 holiday season is expected to help
push bottom lines well past last year’s disappointing numbers.
The year has not been without its struggles, said Kathy
Corey, vice president of merchandising at Day’s Jewelers, which has six stores
in Maine and one in New Hampshire.
“It’s been a bit more of a challenging year than others,”
she commented. “Part of it was devastating snowstorms in February. But we’re
trying to recover from that. Without February, we’d be slightly under target,
but still over last year. But the significant increases we used to see aren’t
happening as easily.”
Corey said the reason was an overall drop in consumer
confidence. “There’s unrest and uneasiness, and when people don’t feel good,
they don’t spend as much money. Also, when things feel unsteady, experiences
matter more, so now we’re competing with trips and luxury dining and
experiential expenditures.”
In Los Angeles, pronounced interest in fashion jewelry and
estate has helped buoy business.
“We’ve been busy all year, actually,” said Gail Friedman,
owner of Sarah Leonard Jewelers in the California city. “It’s been pretty
steady, which is probably more unusual than anything, because it’s been so
unpredictable lately.”
Friedman said customers had been looking for pear-,
marquise- and emerald-cut stones, as well as fashion jewelry and estate watches.
“My non-American tourist customers are especially interested in old gold
watches that Americans think are old-fashioned,” she said. “And everyone is
buying bigger diamonds. They’re getting the 2-carat and 3-carat diamonds that
they didn’t get before.”
Other trends in Los Angeles now include a move away from
halo and three-stone settings, and toward more streamlined solitaires.
“Customers care more about the diamond now,” said Friedman.
“When brands were big — which they’re not now, they’re not as important —
people used to care about the style of the mounting, and worry about the
diamond later. Now people want simpler engagement rings, and they care more
about the diamond they’re putting in it.”
Store closures were top of mind for retailers as they looked
ahead.
“There’s no way to predict anything,” said Friedman. “Some
stores are closing, and even though there’s a slowdown in stores closing, it’s
only because there are fewer stores left to close. I see it as a contraction,
but I think people still appreciate family businesses.”
Corey agreed. “We’re over-retailed, and there’ll be a
correction there,” she said. “But the ship will right itself. I feel optimistic
about the fourth quarter. And we’re starting to see some nice jumps in sales. I
think there’ll be a pent-up demand, and that in the fourth quarter, gift-buying
will become popular. And it’s long overdue.”
Article from the Rapaport Magazine - September 2017. To subscribe click here.