U.S. retailers did some window shopping and product research at JCK Las Vegas, but many of them said they kept their wallets shut. Those who
did spend were looking to fill niches, especially bridal, that are doing well
for them. Some dealers took one look at their well-stocked store display cases
and stayed home altogether.
For John Nichols, sales manager at Huntington Jewelers, the
show wasn’t much of a trip since his store is located in Las Vegas. “I went to
see if I could spot some new things and try to get a feel for what’s out there.
But we’re not ready to spend more money yet. We’re buying from the public, so
we’re recycling a lot. That doesn’t make our vendors happy, but that’s what you
have to do in this economy.”
Nichols isn’t the only one recycling. Tara Silberberg,
co-owner of The Clay Pot in Brooklyn, New York, said that “Customers are
adjusting to the increase in the price for gold and we have less sticker shock
than a year ago. We are implementing a gold recycling program for customers to
scrap old pieces for credit and we are excited about that.”
TOO BIG TO SHOP
The size of the show continues to pose problems for
retailers. “The show seems to be bigger and I’m not real big on big shows,”
noted Nichols. “The bigger they are, the less business I do. I can’t afford to
spend half a day with a vendor — I’m afraid I won’t see everything I need to
see. And since we’re located in Vegas, we have to get back to the store during
the show.”
Debbie Berkowitz, co-owner of Glitters Fine Jewelry in
Leawood, Kansas, admitted that
“Once again, this year was a learning curve. The floor plan still is
overwhelming, but they really stepped up the staff and there was always someone
to help navigate. Our 2012 has been very good. We are changing our inventory
mix this year and enjoying our fresh look. We did not get a lot of buying in
but did a lot of research.”
In addition to the show, Berkowitz is conducting research
online and in trade and fashion magazines to expand her store’s inventory of
“more one-of-a-kind, unique jewelry from some of the smaller, more couture
artisan designers.”
BETTING ON BRIDAL
Silberberg was one of the show’s spenders. “Our bridal
business is stronger than ever. This may be due to our recent renovation of the
room that houses the bridal collection, or maybe the legalization of gay
marriage in New York, which has definitely had a positive impact on our
business. So, for us, the show went very well. We picked up a few new exciting
lines and connected with our current vendors.” This is her second year at the
show, she said, and “while it’s certainly easier to navigate in year two, it’s
still slightly confusing.”
Hy Goldberg, owner, Safian & Rudolph Jewelers in
Philadelphia, Pennsylvania, represented the stay-at-home dealers. “I’m not
going to any shows this year,” he explained. “I heard the show in Vegas was
good this year, and that gives me hope for the industry as a whole. But for me
personally, I just did not need anything in new inventory.”
ELECTION IMPACT
The upcoming election is complicating an already iffy
situation for retailers who are getting enough insecurity from the economy.
“Usually an election year is not a good year for business,” said Nichols. “But
I think 2012 is going to be our turnaround year. I have a lot of friends who
work for the casinos and their tips are getting bigger, and the inventory of
houses for sale has gone down, and that’s all a good thing. The jewelry
business is the first one to drop off and the last one to pick up. If consumers
are even considering a $5,000 jewelry item again, that’s positive news.
Goldberg said he would be “happier if the agenda in
Washington was all about making America strong. But it’s not. We don’t like to
talk politics in our store, because it’s not the atmosphere for that, but you
feel the impact of politics when people don’t want to spend. They don’t know
what’s happening tomorrow, and they’re afraid of what might be happening down
the road. They’re just very conservative in their spending.”
“Election years are always unpredictable for retail,”
admitted Berkowitz. “So we will proceed with caution. Our store will remain
positive and encourage our customers to do the same.” Silberberg was equally
positive. “Election years are always tough — I shudder to think about November
2008 — but hopefully, the stability that we are all beginning to feel in this
brave new world will continue,” she concluded.
THE MARKETPLACE
- Most popular cuts are round and princess and favorite
clarities are SI2-SI6 and VS1-VS2.
- Customers are choosing carat weights above 2.5 carats or
below 1 carat, with some asking for .99 carat because they feel if they get
under the magic 1-carat number, they will get a better deal.
- Demand in colors is for G-I, or J if it’s cut properly.
- Favored settings are still 14-karat white gold or
platinum, but platinum has slowed. Yellow gold is returning and there is
increased interest in rose gold. Some buyers are deciding to save $500 on the
setting by choosing a less expensive metal and putting that money into a
bigger, better diamond.
- Price point for an engagement ring, including setting and
stone, is approximately $5,000.
Article from the Rapaport Magazine - July 2012. To subscribe click here.