The Bureau of Labor Statistics (BLS) reported that the U.S.
consumer price index (CPI) for jewelry rose 1 percent year on year to 178.73
points in June, marking the first notable increase since September 2012. The
jewelry CPI has fallen 2 percent for the first half of 2013, primarily as a
result of lower prices for gold and platinum. It reached a record 183 points in
January 2012.
- June’s CPI still maintained a historically strong trend,
registering the 30th consecutive month of more than 170 points.
- The CPI for all product categories combined jumped 2 percent
year on year to 232.94 points, which was a record high. The previous index
record was 232.77 points posted in February.
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U.S. jewelry store sales jumped 8 percent year on year in
the month of May to $3.01 billion. Excluding the month of December,
historically the highest monthly total for jewelry sales, May’s figure was the
largest month to date for any previous January through November total.
- U.S. jewelry store sales for the January through May cycle
have improved 11 percent to $12.66 billion.
- Advanced estimates for retail in June reflected poor
performance at department stores, where sales plunged 6 percent year on year to
$13.6 billion.
- U.S. chain-store sales posted a gain of 4 percent in June,
which was better than expected, according to the International Council of
Shopping Centers (ICSC), which anticipates a similar improvement for July with
chain-store sales increasing between 3 percent and 4 percent.
- The National Retail Federation (NRF) reported that June’s
retail sales, excluding automobiles, gas stations and restaurants, increased 3
percent unadjusted year over year. The group noted that consumer spending and
retail sales ended the second quarter on a soft note, indicating that economic
growth and acceleration has weakened.
U.S. consumer confidence has leveled off in recent weeks,
according to the Gallup Organization, as signs from the nation’s economy turn
mixed compared with early June. However, the group’s Economic Confidence Index
noted that consumer confidence remains at a relatively higher level compared
with the past five years.
- Gallup reported that the economic outlook has worsened since
late May and early June, falling by ten points. Overall, the index was at
negative nine points for the week that ended on July 7, 2013. The index reached
a five-year weekly high in late May at negative three points.
- Gallup concluded that volatility in U.S. stock prices and a
stubborn unemployment rate are holding the index back. For the most recent
week, 45 percent of consumers said that the economy is getting better and 51
percent felt that it is getting worse, for a net economic outlook score of
negative six.
The Zale Corporation signed a new, multiyear private-label
credit card program agreement with Alliance Data Systems Corporation. Under the
terms of the agreement, Alliance Data, through its Comenity Capital Bank (CCB)
subsidiary, will provide private-label credit cards to customers of Zale in the
U.S., beginning no later than October 1, 2015, following the scheduled
expiration of Zale’s current U.S. private-label credit card agreement on
September 30, 2015.
Alliance Data will provide marketing and database
capabilities, analytics and a suite of omnichannel marketing tools designed to
generate sales and extend brand affinity. It will also create a portfolio of
tablet and mobile marketing solutions for fine jewelry to optimize cardholder
acquisition and retention.
Birks & Mayors Inc. reported that revenue fell 3 percent
year on year to $292.8 million for the fiscal year that ended on March 30,
2013. Profit rose to $1.5 million.
- Same-store sales rose 4 percent. Comparable-store sales in
Canada increased 7 percent during the fiscal year and rose 2 percent for the
company’s U.S. operations.
- The retail jeweler closed 11 underperforming locations,
resulting in a drop in sales of $7.3 million.
— *Additional reporting provided by Acquire Media.
Article from the Rapaport Magazine - August 2013. To subscribe click here.