After a predictably slow summer, retailers were ready to look ahead to a busy holiday season. Store owners reported that they were already assessing inventory levels and planning holiday promotions in anticipation of a hectic November and December. As long as the economy stays the course through 2018, there is every expectation among jewelers that the year will end on a positive note.
The New York perspective
The holidays are special everywhere, but New York jeweler Dana Walden Chin, co-founder of Dana Walden Bridal, treats that time of year a little differently than some of his industry colleagues do.
“We’re always really excited about the holidays,” he said. “But for us, they’re not about ramping up inventory or transactions. Instead, we have an intimate dinner party at our showroom, and we invite clients we’ve had a connection with over the years. It’s less about a sales goal, and more about reinvigorating that connection and celebrating it.”
The city lends itself to that kind of creative thinking, he said.
“New York is an anomaly in terms of what the customers seek out. Customers don’t expect a big-box retailer price point, and the amount of research that New Yorkers do in the arts and culture, and the level of creative curiosity in the city, really drives our business,” he explained. “Plus, we have lots of clients from the Midwest and from other countries.”
Chin said tourism also meant extra excitement for his business in December. “For the holidays, a lot of our international clients want to visit New York City. So we end up booking a lot of people in December for that reason.”
Prep and the year ahead
With the economy holding steady, jewelers in other parts of the US were also upbeat despite a traditionally quiet summer season.
“Summer is always slow for us, and I think it’s slow for everyone,” said Patrick Larkin, manager of Burri Jewelers in Cheyenne, Wyoming. “But I’m feeling pretty good. Last year’s Christmas was good. My February sale wasn’t as good this year as in 2017, but it was still good, and we sold a lot more, although it was a lot of smaller things. It just goes up and down.”
Larkin always plans his holiday inventory decisions early. “We buy some product at JCK,” he said. “But a lot of times, we make it so product doesn’t come into our store until October. And sometimes we won’t even start heavily buying until the end of August.”
Scott Stambaugh, owner of Stambaugh Jewelers in Defiance, Ohio, said he was also feeling optimistic about current demand and the holiday outlook. “We had a good Christmas last year, and we’re looking forward to the holiday this year,” he said. “The economy is strong, and people always get engaged, so our bridal business is strong.”
Surviving the closures
Of course, retailers have also been worried about the store closures that have been plaguing the industry. But in Larkin’s view, fewer stores might be a good thing. “Maybe because there are less of us, we’ll each do more business,” he said. “But stores have to be careful with spending and be careful with inventory. Don’t be too trendy, because trends fade.”
The industry may be due for a leveling-off anyway, according to Stambaugh. “The way our industry — every industry — has gone over the last seven to 10 years, there was always going to be a mass loss of retailers if they weren’t able to adapt,” he said. “But the small independent jeweler is still strong and really knows its customer. You can’t do that in e-commerce. People still want relationships.”
Article from the Rapaport Magazine - September 2018. To subscribe click here.