Despite a tumultuous year, retailers reported a surge in holiday sales. Although there was still some hesitancy to fully embrace e-commerce, jewelry store owners found that consumers’ inability to travel translated into increased business for the luxury sector. They also found that in-store sales were still strong, even amid precautions such as appointments and masks. Those year-end numbers — coupled with news of a Covid-19 vaccine and the optimism over a new administration in Washington, DC — helped 2020 close on a bright note and made the 2021 outlook almost cheery.
Bouncing back
Despite two closures in the past year, seasonal business was good for Michael Han, owner and president of The Wedding Ring Shop in Honolulu, Hawaii.
“In October, our sales bounced back, and December is decidedly ahead of [2019],” he said. “The last quarter [of 2020] has been exceptional. Whether it’s pent-up demand, or people not traveling, I don’t know. But what I hear across the country is that retail jewelry is doing okay.”
While he doesn’t sell online, Han uses a digital concierge service to bring customers in, and he leveraged television marketing in the fall. “People’s attention was drawn to the election, so we moved to television advertising to capture that,” he explained. “We did more television in the last quarter of 2020 than ever. And the result shows that it worked.”
The numbers were also strong in Georgia as of late December.
“If the last few months are any indication, we anticipate holiday numbers to be the same or better [than in 2019],” said Jessica Rossomme, director of operations at Mucklow’s Fine Jewelry in the state’s Peachtree City. “We saw increases in [2019] numbers for September, October and November, and hope that continues for December as well.”
Rossomme, who is also an advisory board member at JCK, observed no more online shopping or early shopping than usual, but said there were changes nonetheless. “We noticed family members who live out of town, or even out of state, who [would] be unable to travel home for the holidays, calling us to make a purchase because we’re local and convenient to their loved ones,” she related. “It’s been heartwarming to see the solutions families are coming up with to keep the holidays special.”
Comfort and consistency
In the midwest, Eric Swanson saw plenty of early holiday shoppers at Neustaedter’s Fine Jewelers in St. Louis, Missouri, where he works as sales manager. But that wasn’t unusual for his store, which specializes in custom work and engraving.
Overall, he said, the holidays looked strong. “The numbers will be down, but only slightly,” he said, noting that many of his customers were seeking comfort and consistency. “When life is uncertain, like now, people have a tendency to shop for value. They want to give something unique and special, and we excel in that area.”
While he doesn’t do much in terms of online sales, his online advertising has been successful, he added. “People are not traveling this year, so there is disposable income that was intended for travel that’s now available for fine-jewelry purchases. We should benefit from this.”
Prospects for stability
Han was optimistic about the Covid-19 vaccine, but said he was still taking precautions. “We’re 80% appointments, and it’s a jewelry store, not a sandwich shop with people standing in line. We have sizable square footage, and we keep people distanced, and we have a waiting area. And we require masks.”
For Rossomme, both service and safety have been priorities. “The in-store experience has obviously been affected in [terms] of procedure and policies, but the shopping and service aspects have remained the same,” she asserted.
Swanson’s store has required masks and distancing, he said, but not all his customers approve. “Where we are, there are a lot of people that see the government actions as overly intrusive and dictatorial. We just work with whatever makes the customer the most comfortable in the store.”
Han was hopeful going into 2021, declaring that it was “going to be a more uplifting year. It can’t be any worse. We have a new administration, and Covid-19 will be on the downswing.”
Swanson, too, hoped for stability. “I believe, longer-term, we’ll see a return to more normal business activities. People want their lives back.”
Rossomme was cautiously optimistic. “The new year will bring new challenges. But 2020 has been a testament to how important it is to be flexible, adapt, persevere, and remain dedicated to the mission of our industry, which is to allow others an opportunity to show and share their love.”
Article from the Rapaport Magazine - January 2021. To subscribe click here.