Many jewelers have weathered the perfect storm of 2020 rather well, considering the triple roadblocks of a pandemic, widespread protests, and an election year. Even as the overall retail industry faced thousands of store closures, small retailers in the diamond and fine-jewelry industry reported generally steady sales. They attributed the good numbers to customers looking to buy luxury gifts in lieu of expensive vacations, since travel was still off-limits. Some stores have also begun embracing digital sales, which have added another income stream to their businesses. Even though there’s no clear end to the pandemic, store owners were cautiously optimistic that 2021 would usher in continued retail recovery.
Back to normal?
Business has been brisk, store owners reported, despite Covid-19 concerns and customers who are on edge about the presidential election.
“We’ve been busy,” said Mindi Robuck, co-owner of Michael’s Jewelers in Anchorage, Alaska. “Lots of engagement [jewelry sales]. People can’t travel and do stuff, so they celebrate and get engaged. People’s attitudes are pretty good, [but] I think people definitely want the election to be over.”
Robuck said it was hard to predict what would happen next, though. “Through the summer, and even [in the fall], we’ve had great numbers,” she reported. “But I’m not thinking about next year, because who the hell knows? We’re here and focused on our business, and people love supporting local. We’ve heard that repeatedly this year.”
Change has been unsettling in 2020, even for retailers who have done well overall.
“We’d all like the world to go back to normal,” said Scott Stambaugh, owner of Stambaugh Jewelers in Defiance, Ohio. “I don’t know that that’s possible. Business has been steady and decent, but we’ve changed our hours, and we’re closed on Mondays. Business is still up compared to last year, and we’re still hitting our numbers. So business has been strong, it’s just different.”
No matter how busy stores got, there was still a sense that life wasn’t stable.
“This year has been a whirlwind, to say the least,” said David Borochov, manager of R&R Jewelers in New York. “The diamond and jewelry industry has been shaken up. Now more than ever, consumers are looking to shop virtually, and they feel very comfortable doing so. I believe this new reality for our industry will continue into 2021.”
Bringing customers into the store has been one of Borochov’s biggest challenges. “It’s definitely been difficult to bounce back,” he said. “There are almost no tourists visiting New York City, understandably. Luckily, foot traffic has picked up in the last few months. However, there are still many consumers that don’t feel comfortable walking the streets of New York City. I strongly believe that 2021 will be a good year, but that highly depends on an establishment’s ability to adapt to the new norm, [which is] a virtual society.”
Driving factors
Customers are choosing to buy jewelry instead of traveling, and that trend could continue, according to Stambaugh. “We could see that going into next year. Valentine’s Day has been so diminished as far as jewelry is concerned, but there could be more to be said about that. The onus is on us to market ourselves. Door traffic is strong, and people are coming in. There’s probably a fair number of opportunities as long as we market, and we’re still doing radio and billboard and digital.”
Another factor that will likely drive business next year is staying community-focused and keeping overhead costs low.
“We’ve lived in Alaska our whole lives,” said Robuck. “It’s a small community. Restaurants are boarded up that will never reopen, and that’s very sad. We care, and it impacts our community. We don’t know what’s going to happen tomorrow, but we don’t have any debt, and we own our property and our building, and keep it tight. That’s what’s helped us with this.”
the future is online
Digital will likely be a big factor going forward, even for stores that weren’t previously bullish about online sales.
“I’m still working to perfect my establishment’s approach to virtual shopping, working on our e-commerce website, social media platforms, etc.,” commented Borochov. “Due to the shift in virtual shopping, I would say that’s my biggest challenge and focus for the upcoming year. Believe it or not, I’ve successfully sold engagement rings during Covid-19, working with clients solely via FaceTime and Zoom. I’m expecting a lot of that in 2021.”
Article from the Rapaport Magazine - November 2020. To subscribe click here.