|
|
U.S. Retail
By Lara Ewen
As spring began, consumers emerged from what appeared to be an extended hibernation. Overall sales reports from January and February had been even more tepid than usual, so March’s consumer thaw was especially welcome, as early reports indicated that sales and traffic were on the upswing. Buyers said that some of the shows they’d been to, such as the Tucson shows and Centurion, were more sparsely attended than usual. However, most indicated that they were planning to attend the June Las Vegas shows, which might mean store owners are simply saving their limited inventory dollars for one big spend later in the year. Generally, retailers were nervous but optimistic that the year ahead would be profitable for stores that were agile enough to navigate online commerce and connect with Millennial consumers.
By many accounts, the beginning of 2017 was slow and rocky. “January started out kind of weak, but we finished the month strong and went over last year’s numbers, year-on-year,” said Bill Maxey, diamond buyer at Butterfield Jewelers, with two locations in Albuquerque, New Mexico. “Then we had a really weak February, so we’re down overall right now.” According to Maxey, his locations recently had to compete with heavily discounted clearance prices when a local jeweler went out of business. However, by mid-March, he said, sales had begun to normalize. “Our main rep said it was down everywhere in our area,” said Maxey. “I’m not hearing any real positive vibes anywhere. But I think we’re going to be okay now that the other store is gone.” Store closures also proved challenging for Judith Arnell, owner of Judith Arnell Jewelers, with one store in Portland, Oregon, and a wholesale business based in Chicago, Illinois. “Business is improving, but last year was horribly dismal,” she said. “Gordon’s Jewelers closed near us and their sale was bad for business. Our January was slow. But February really perked up, and March has been really good.”
Traffic wasn’t slow everywhere. In Alaska, business was booming. “We’re doing fantastic,” said Mindi Robuck, who co-owns Michael’s Jewelers in Anchorage with her husband David. “We had a great start for the year. We have a little bit of growth every year and we’ve had an amazing March.” Robuck said that a sizable military population and a thriving tourism industry have helped her enormously. She also credits her success to a robust online presence. “We have a lot of military up here and we don’t have sales tax in Anchorage, so people make a vacation out of coming up and seeing Alaska and then they get engaged,” she said. “So we make it a total experience. We have our website, and we have good Google ratings and our customers share their experiences and they review us. Everybody Googles these days and that’s how they find us.”
Retailers say reasons for jewelry’s business troubles are complicated. “January and February are no indicators for the rest of the year, but we’re just a fraction above 2016,” said Steve Samaras, owner of Zachary’s Jewelers, with two stores in Maryland. “But anything better is good, and I don’t believe this is the new normal. I think politics has weighed heavily on the landscape, not just in jewelry, but in every industry. Until this guy gets off his tweets and decides to run the country, then it’s going to be like this.” Samaras said that it’s not only politics that’s the problem. “There’s other influences on our industry that are creating the problems we’re experiencing right now,” he said. “If you’re not appealing to Millennials, your business will suffer.” Samaras said that his solution has been to actively pursue online avenues. “I’ve redirected a tremendous amount of resources to online and I’ve hired a full-time person to open our third store, which is what I call our website.” For some retailers, even positive sales left questions about the changing market. “As the eternal optimist, I feel 2017 has a bit more wind in its sails than 2016 did,” said Steve Quick, owner of Steve Quick Jeweler, with three Chicago-area stores. “Our first store event of the year in mid-March came very close to our 2016 numbers and that was one of our best ever.” Still, Quick says his middle market has become tricky. “Is the middle market slow or is our business and its clientele changing?” he asked. “I’m not ready to sound the alarm yet, but I’m beginning to feel that in addition to our usual competition, we may be seeing changes in the position jewelry holds in the minds of younger consumers.”Article from the Rapaport Magazine - April 2017. To subscribe click here.
|
|
|
|