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How Did The Holidays Measure Up?
By Phyllis Schiller
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| Anne Sportun |
The 4Cs are not the only things that make a piece
of diamond jewelry a sales winner. In an ongoing series, Rapaport Magazine explores the “3Ws” —
what’s selling, what’s not and why — by going straight
to the people who really know — jewelry retailers. Each month, we ask a sampling of retailers to comment on the important issues that are facing the industry today. Here is what they had to say when asked at the end of November: “How were Christmas sales this year?
Was there any one item that sold best?”
“It was kind of flat with 2011. This year was going
so well, we actually thought we’d have a nicer holiday. But unfortunately, here in Connecticut, the ten days before Christmas, with the horrific events at Newtown and the fiscal cliff, were a
bad combination. “We probably had more transactions than previously, but at lower price points. We recently created a pretty pearl necklace that I have in a small museum case in my front window and we probably sold 40 or 50 of those necklaces. As a small independent,
that was huge. But it was only a $200 price point. “Medium-price diamond stud earrings, $1,000 to $3,000, were once again sellers. And a colored stone jewelry line called Rimma Jewelry with larger, bezel-set colored gemstones, pendants and earrings, sold remarkably well.”
“This is my 48th Christmas and if we could have every one like this, we’d get healthy. It was fabulous, across the gamut — anything and everything you can imagine sold. As with a lot of retailers, silver is huge; we do a lot of bead business. We do our own beads and make our own pieces. “It’s still 50-50, the haves and the have-nots. I think that dichotomy is going to be huge for the future. We sold a diamond engagement ring that was sterling silver with CZs that was under $100 and then we sold a mega-diamond engagement ring that was way up there. Engagement rings were up. And for the past six years, when gas prices go up, people shop locally rather than traveling out to the burbs and we benefited hugely
from that.”
“The holidays went well — engagement ring sales were up and customers were buying bigger. In fact, the engagement side of sales probably doubled from 2011. Other items weren’t as good. In terms of diamond jewelry, it was the basics that sold.”
“All indications are that we will be about even or just a speck up from December 2011. We noticed that while the number of sales was down, our average sale was up considerably. Diamond jewelry was the best seller — the staples and bridal. And custom work; we did a beautiful custom sapphire ring, things like that. “I think people who have disposable income were spending. And New Orleans is a little bit more recession-proof than other parts of the country. I’ve talked to friends from across the country and it was one end of the spectrum to the other. But I do think it was a tougher season than one expected. We’re a small store, an old family business, not a multistore chain. We’re pretty consistent.”
“We are a little ahead of last year. We were running way ahead and then it was kind
of neck and neck at the end. It really depends on what we do the last few days after Christmas, because we push all the way to the end and we are still seeing sales. It’s busy. We are doing a special promotion through the end of year. “It was a lot of everything selling; we carry 35 brands so it was a combination of everything from fashion jewelry to diamonds. This was not as strong a watch Christmas
as we’ve experienced the past three or four years, although we sold several large pieces. We really saw more in the jewelry end of it. “We’ve been pretty excited about the year and the season. It’s been a tumultuous
time the past few years but we seem to keep persevering and I credit that to the really
good team we have.”
“Very well...exceptionally well for us. The number of pieces is up a bit and the
average retail went up about $125, which is a pretty good increase. There were a lot
of self-purchasers this year. I think some people were tired of not spending any money
and decided to get something for themselves. “We carry a sterling silver line, Belle Étoile, and it just flew out of here. Diamond earrings also sold, $199 to $600 — smaller sizes were nonexistent; it was really from halves up. We made our Christmas through gold and Hearts on Fire did exceptionally
well. We’re going to be starting the New Year strong, both with our inventory and our payables. From an owner’s point of view, it’s the perfect storm the other way.”
“It went tremendously well. The biggest thing was my profits were up substantially over past years. We had more sales and we sold across the board, although probably less of the really big items — over $100,000 type things. We sold a lot of $20,000 to $50,000 items. But where we really hit home runs was under-$5,000 items and even under $2,500 —
we sold hundreds of those. “Diamond studs are always strong, and diamond pendants — we sold a lot of big 4-carat pendants. In terms of studs, it was the mid-range size, 2-carat total weight and down, that sold, but better qualities. People were really looking for quality — they bought a little smaller but better.”
“Christmas went very well. My sales are up over 2011 by about 20 percent; price points increased. Diamond earrings did very well — above a carat in size. I took on Belle Étoile enamel pieces. Same watch lines I’ve carried in the past, but I bumped up a little higher end and those went. I changed one of my bridal lines and that seemed to help, too. “I put a little more into my advertising and worked a little more on my web. And I got more creative. There was construction on our street from May through December. There were no traffic lights and everyone had to stop at the corner, which is where the store is located. I used signs to turn my store into a “billboard” people would notice and it paid off. I can’t tell you the number of new customers who came into the store. And I joined some local social organizations and did more charity work and that also paid off. People support you because you’re supporting them.”
Article from the Rapaport Magazine - January 2013. To subscribe click here.
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