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Show Plans
By Lara Ewen
The annual Vegas pilgrimage is right around the corner, and stores are assessing their inventories. Though most retailers feel the worst of the recession is over, many are cautious about spending too much on stock that may end up sitting on shelves. Still, buying is not the only reason to attend the shows. Even if JCK isn’t on a retailer’s calendar, other smaller shows, such as InStore’s Smart Jewelry Show in Chicago, are appealing to independent jewelers in search of information, education and the opportunity to connect with their colleagues.Vegas or Bust?While JCK may be the biggest event on the U.S. show schedule, it’s not for everyone. “I’m not going to JCK,” said Eve Alfillé, owner of Eve J. Alfillé Gallery and Studio in Evanston, Illinois, a Chicago suburb. “Because of the economy, we still have quite a bit of inventory. Also, we have the InStore show here in Chicago, and a number of our needs can be met there.”For Richard Hegeman, owner of Hegeman & Co. in Providence, Rhode Island, Vegas just doesn’t serve his needs anymore. “I used to go to JCK, but I think I’ve got things narrowed down, in terms of how I want to represent the store,” he said. “I may add a new supplier, but the internet makes everything available, so I don’t feel the need to head to JCK. Still, I do check out who’s exhibiting at the show.”Other store owners feel that attending the Vegas shows is simply a must. “I’m absolutely going to JCK,” said Jim Jessop, owner of Jessop Jeweler in San Diego, California. “I wouldn’t miss it. This is the first year in a couple of years that we’re going with a full shopping list. We’ve been conservative with our buying, and our store is showing that. I’ll be looking to fill holes, and bring in new designs.”Expanding inventory is also important for Steve Samaras, owner of Zachary’s Jewelers, with two stores in Maryland. “We just opened a second store near Baltimore, and we’re moving more heavily into bridal,” he said. “I’m sending my buyer to JCK, and I’m planning on going to Vegas for a few days to attend the Couture show. We go four out of five years.”Another owner who always attends the Vegas shows is Paul Becker, owner of Becker’s Diamonds & Fine Jewelry in West Hartford, Connecticut. “I go to JCK every year,” he said. “Every year is different, because you don’t know what the climate will be. I used to go to Basel, but I haven’t gone in five years, because we don’t need to be ahead of the curve the way we would if we were in Manhattan. Also, I’ve been to the InStore show the past three years, though I didn’t go this year. They have great seminars and workshops. But the show itself? Knowing JCK is just down the pike, I don’t go to the InStore show to buy.”Economic OutlookWhether or not retailers are planning to attend JCK, concerns about the fragile economy have everyone keeping a close eye on costs. “In this business, we fall victim to the economy,” said Hegeman. “When the economy doesn’t do well, prices skyrocket. And I don’t foresee the economy doing extraordinarily well for some time.”Becker agreed. “The economy and the U.S. dollar are extremely fragile,” he said. “I think we’re going to see a very big weakening of the U.S. dollar, and extremely high inflation. When the market went kaput, people lost 40 percent to 50 percent of their equity, and if it goes down again, they’re going to lose more. People like to forget about a recession, but if you’re a middle-America type of jewelry operation, you’re getting clobbered. So you have to run very lean and run very efficient, and watch your expenses, and still be optimistic that there’s business to be had. There will always be people spending money and you have to go after it.”Jessop is seeing some of that business already coming back. “I can’t do anything about keeping the economic news optimistic,” said Jessop. “But I can work hard and look at a lot of lines. My clients are still conservative about spending, but they have returned to making purchases. I think for the next three or five years, we’ll likely see the overall average ticket price be lower. People are more optimistic now, and they’re tired of being pessimistic. But we’re all still a little shocked by what we went through in 2008.”Samaras is also feeling better. “Over the past couple of years, everyone has been concerned,” he said. “We try to be less pessimistic than most. Our worst year was only 9 percent off our best year. You can never be sure what will happen externally, but internally, it’s very positive.”Perhaps Alfillé sums it up best. “There’s been a slight uptick, especially in women’s self-purchase, over the past two years,” she said. “Bridal and custom redesign have kept us going. You have to be optimistic, and generally, I’m very optimistic.”The Marketplace- Round cuts are still top-sellers, with princess and cushion cuts following at a distant second.
- 1.25-carat stones are the most popular.
- SI1 and VS2 are the most popular clarities, in that order.
- G-I is the best-selling color range.
- 14-karat white gold and 18-karat white gold still outsell platinum in settings.
- The average price for an engagement ring, including stone and setting, is $7,000.
Article from the Rapaport Magazine - May 2011. To subscribe click here.
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