Summer is traditionally a slow season for US jewelers, even in the more popular tourist destinations. Yet despite underwhelming traffic during first few months of 2019, summer sales — as well as year-to-date figures — are even or slightly up compared to last year, according to retailer reports. Forecasts for the rest of the year are positive, assuming the economy holds steady.
Halfway through
In the midwest, sales were decent, but unremarkable. “Business this summer has been average to good,” said Steve Quick, owner of Steve Quick Jeweler, which has two stores in Chicago. “Our June numbers were slightly off of our goal numbers, but in line with the past few years.”
Quick is in the process of making major structural changes to his business, including consolidating his stores from three locations to one. The consolidation sale made the fourth quarter of 2018 “amazing” for him, but had the opposite effect on his 2019 sales, he reported — likely because customers had already made their purchases in previous months.
In New York, a small coterie of shops was doing quite well, but that wasn’t necessarily predictive of any larger trends. “There [is] an elite group of brick-and-mortar establishments, on and off 47th Street, that have managed to overcome various industry-related obstacles and even evolve [and] grow in the process,” said David Borochov, manager of R&R Jewelers in the city. “With each passing year, it seems that the retail diamond jewelry industry, especially on 47th Street, faces new struggles and conflicts.”
For Borochov in particular, business was great — “[especially] for engagement rings, wedding bands, and small trinkets such as diamond studs, bangles, and stackable rings,” he said. “The larger, more expensive items don’t sell as often as they used to. The minimalist approach is now trendy. Less expensive is more.”
Out west, many locals left town as summer heated up. “In Las Vegas, the wealthier clientele tends to travel away during the summer,” said Jenny O. Calleri, owner of Huntington Jewelers in the Nevada city. “However, birthdays, anniversaries, weddings are always happening. And we’re always cultivating new people.” Calleri said her business was up from last year, when the store had been on the verge of closure before she took over ownership. “We completely restocked the store, and the entire inventory has changed to a more fashionable and elevated aesthetic, with a higher price tag.”
Tourist dollars
“International tourism does not have a great effect on our sales,” said Quick. “Our stores are not currently located in areas that see a lot of international tourists.”
He believes his new location, which he expects to open in late 2019, will be a different story. The new space, which will eliminate traditional showcases and feature recycled and reclaimed wood, is a way for the store to reimagine its retail process, as well as relocate itself in a more central area “that should become a tourist destination,” he said. “At that point, I’m sure the ebb and flow of international tourists will be very important to our business.”
International tourism made a much stronger impact on New York sales in years past, according to Borochov. “I don’t think it’s as strong nowadays,” he commented. “A ton of tourists visit New York City in the summer, and we do get a handful of tourists walking in weekly, but I wouldn’t say it’s a strong factor of summer sales.”
Calleri credited the internet with helping her cultivate an international clientele. “We’re the number-one-rated local jewelry store on Google, and we have people getting dropped off at our store in a taxi straight from their hotel,” she said. We’ve had overseas clients send us [online] messages and pre-shop, if you will.”
‘Productive summer’
Quick is hoping for a positive season and year. “The stock market seems to be ever pointing up, which helps tremendously,” he said. “I think we are a few trade deals from a fall [season] of new highs. I’m an optimist, so I usually see a silver lining. I know people who are expecting far less.”
Borochov, too, is optimistic, but only to a point. “It’s going to be a productive and successful summer,” he declared, predicting the rest of the year would be good as well, but not for everybody. “I just fear the outcome for everyone else.”
Article from the Rapaport Magazine - August 2019. To subscribe click here.