With traffic down in stores across the country, and
political feathers being ruffled on both sides of the fence, retailers were on
edge about their bottom lines.
Store owners reported erratic and unpredictable sales, and
said they were primarily directing their efforts toward an online push to
connect with millennial customers.
Even the most optimistic retailers suggested that 2017 was
unlikely to turn around any time soon, and that some measure of belt-tightening
would probably be in order for the coming fall.
The biggest concern among store owners seemed to be the
unpredictable nature of the current retail climate.
“We had a tough first quarter of 2017, but the second
quarter improved, and it’s continuing to improve, so we’re optimistic,” said
Michael Han, owner and president of The Wedding Ring Shop in Honolulu, Hawaii.
“But I learned from 2016 that bridal trends aren’t the same as they were.
They’re not as predictable. So that’s unsettling.”
Han said he’d heard marriages were becoming less attractive
to people of lower income levels, and that the Hawaiian wedding market, second
only to Las Vegas in the American wedding circuit, had seen a marked drop in
business.
In Colorado, Marc Feder, owner of Jay Feder Jewelers, said
the market was similarly unstable.
“It’s been another interesting year,” he commented. “It
hasn’t been bad, but we’ve seen some slower months than what we’d like, and
there’s a trend away from really huge vault pieces.”
Feder — who has one store in Denver, as well as a New York
City-based wholesale operation and a new retail store planned for Boca Raton,
Florida — reported unusual traffic patterns as well.
“I would say traffic is not up, but I don’t like to say it’s
down, because people are coming in every day,” he said. “I know people still
love jewelry, but what they’re buying is confusing me at the moment.”
In the Northeast, traffic has remained sluggish.
“Foot traffic is a little slower, but tickets have been a
little bigger, so the numbers are basically the same,” said Kevin Gorkofsky,
owner of Kevin Edward Jewelers in Avon, Connecticut. “When you sell bigger
items, though, the numbers look good, but the margins are tight.”
What’s affecting retail has also affected wholesale, he went
on.
“I heard the Vegas show was down 25% to 35% in foot traffic.
The people who did go were more serious shoppers, but it’s a dangerous trend.”
Retailers were loath to make predictions. However, Feder
said he was bracing for more unpredictable times ahead.
“I do think the rest of the year will settle down,” he said.
“But I think there will be some good months left in this year, and some
difficult ones.”
Han, like most jewelers, was hopeful.
“I think 2017 is going to be okay,” he said. “Most of my
peers are doing at least decent. They’re not raving about this year, but it’s
decent.”
Article from the Rapaport Magazine - August 2017. To subscribe click here.