February was a raw, cold month for much of the country, and jewelry retailers did not escape the chill. After a disappointing holiday, January traffic was predictably slow, and the continuing threat of another government shutdown — along with weak Valentine’s Day predictions — compounded the stress. Looking ahead, the biggest challenge was simply getting customers into the store. But with spring — and warmer weather — on the way, retailers were still hopeful the bridal season would provide some welcome relief.
In the east
Although stores in the northeast weren’t hit with a lot of snow, a bitter cold front and the tension of a government shutdown essentially froze sales. “January was very slow, with not a lot of foot traffic,” said Rich Goldberg, president of Safian & Rudolph Jewelers in Philadelphia, Pennsylvania. “In January, there’s always a slowdown. Right now there’s a mental uncertainty, and that has an impact, especially in luxury retail.”
February didn’t appear to offer much relief. “Valentine’s Day gives a little bump, but it’s sluggish,” he said. “We’re selling smaller items, but it’s not proven to be a significant revenue producer. Come March and the next few months, and into bridal season, I hope it picks up.”
Even though Goldberg — who is also president of the Philadelphia Jewelers’ Row District — caters to a higher-end clientele, the shutdown had an impact, he said. “It was affecting the [stock] markets as well,” he said, “and uncertainty in the markets and what’s coming down from the top also affects those with deeper pockets.”
Goldberg said his biggest challenge was bringing people into his store. “I have found a lot of millennials do enjoy the experience of coming into the store,” he reported. “The hardest part is getting them here for the first time.”
Connecting with his local chamber of commerce, charities, and networking groups helped, as did social media, he added. “Instagram helps get your message out there, but connecting one-on-one is how you get people in the door.”
Way out west
On the West Coast, sales were also sluggish. “January started off pretty well, and then someone [metaphorically] shut the water off,” said Stuart Benjamin, owner of Stuart Benjamin Jewelry Designs in San Diego, California, also referencing the government shutdown.
Still, Benjamin said his February was beginning to look better. “We had a great week, and a couple of good sales [the first week of February].”
He hoped a new website design would help bring customers into the store in the coming year. “The big challenge we’re looking at this year is to get the younger generation to come into the store,” he said. “They find you on Google, and then they go to your website. And if your website is informational, then they give you a call and come see you.”
Middle ground
Further into the country, stores seemed to be doing better. In Boulder, Colorado, Keith Hurdle, owner of Hurdle’s Jewelry, noted his January sales were about even with the previous year’s. Although 2018 ended on a shaky note, he was optimistic. “People felt generally upbeat,” he said. “The year ended down last year with the stock market, but we still had our third-best year.”
He agreed with the other retailers about the importance of getting new faces in the door in 2019. “I think exposing ourselves to new clientele is our biggest challenge,” he said. “We’re talking as a group about how we want to approach it, but it will
be a combination of direct advertising
and visuals.”
Looking ahead, Hurdle said success would hinge on making more personal connections. “If you can get people to be comfortable and trusting and happy, and their investments are looking good, that will help the jewelry industry,” he observed. “We’re in an industry that’s not a ‘need’ but a ‘want.’ So there still needs to be interaction. And if we can offer good service, we can still bring people in.”
Article from the Rapaport Magazine - March 2019. To subscribe click here.