It’s been a year since Covid-19 forced many US stores to shut down — some temporarily, and some permanently. Yet many jewelry retailers flourished in 2020, in part because travel restrictions funneled wealthy customers’ dollars into jewelry self-purchasing. While the JCK Las Vegas show has been postponed until August this year, the overall industry mood is upbeat, with hopes of a Covid-19-free autumn.
Customers coming back
Business was brisk for store owners as of early spring. “Sometimes I think that right now, they’re shopping too much,” joked Jenny O. Calleri, owner of Huntington Jewelers in Las Vegas. “The engagement surge is picking back up, because if you’ve been able to weather the [Covid-19] storm with your loved one, then you’re saying, ‘Let’s do it.’ If you’re ready to peace out [and break up], then you’re ready to sell. I’m buying a ton right now.”
Customers are starting to imagine a post-pandemic world, retailers said.
“There’s an overall sense of relief in the market right now, with the talk of a stimulus package and vaccines for Covid-19,” said Amanda B. Coleman-Phelps, president and CEO of Nelson Coleman Jewelers and Mayflower Estate Buyers & Consulting in Towson, Maryland, as well as Jewelry By Designs in Woodbridge, Virginia. “[And] our clients never stopped shopping with us.”
Even so, 2021 looks to be an unusual year. For Anthony Mock, owner of Mock & Co. in Monroeville, Pennsylvania, business was “decent but not great” at the beginning of the year. “But when the sun comes out a little more, people have a more positive mood,” he said. “I think people will start finding unique ways to have weddings, and things that are more intimate. And our clientele is wealthy, so the economy didn’t really affect them. It only slowed them a little.”
What’s selling
Custom jewelry has been hot, and bridal has been a huge seller.
“Customers are buying a lot of bridal, and not just engagement,” reported Calleri. “Also, this past year, people haven’t been able to travel, and they’re stuck at home, redoing their kitchens and redoing their jewelry boxes. They want to update their look, so I’ve been doing a lot of makeovers.”
While classics have also been moving, she added, lower-priced fashion hasn’t. “The lower-end customer isn’t here to buy, they’re here to sell.”
Less-expensive weddings have meant higher engagement spending, according to Coleman-Phelps. “We have couples who have larger budgets because they’re having smaller weddings. Lab-grown diamond sales have also gone up, and so have basics like diamond studs and pendants.”
Her gold-buying business has been slower than she’d like, however. “We do a lot of gold buying, and I’m a bit surprised that we’re not doing more. With how the economy is, and unemployment, I figured we would be doing a great deal more.”
Mock said bridal was “still kicking butt,” but that gemstones, diamond bracelets and earrings weren’t very popular. He has, however, been seeing more men self-purchasing. “Men are buying big pieces for themselves instead of a big wedding band. And I see them also buying the girls more elaborate gifts like pendants and custom pieces.”
Show season
The Vegas shows aren’t something Calleri has missed. “It’s much better when [suppliers] come to me,” she stated. “The shows to me are more of a social outing.”
Other store owners have been cautious about travel due to Covid-19 concerns.
“I’m not eager to get back to the trade shows until we have more people vaccinated,” said Coleman-Phelps. “We have such great relationships with our vendors, [and] we have made the most out of staying stuck. [But] if the number of people getting vaccinated and the level of herd immunity is where they predict by July, I would go to a show in August or September.”
Mock, meanwhile, is looking forward to the return of JCK. “When I first started working at jewelry stores, the owner would go [to Vegas], but we weren’t allowed to go,” he related. “So when [my business] got bigger, I went to JCK, and I loved it. I will probably go to JCK in August.”
He’s looking forward to 2021 for other reasons as well. “It’ll be a really good year. People want to get out and show what they bought during Covid-19, especially the men, who were buying the big pendants. And that will help me, because they’ll tell people where they got it.”
Article from the Rapaport Magazine - April 2021. To subscribe click here.