RAPAPORT... The US jewelry trade continued to downsize in the first quarter, albeit at a slower pace than in previous years, data from the Jewelers Board of Trade (JBT) revealed.
The number of jewelry businesses exiting the market dropped
64% in the first three months of 2019 versus the same period a year ago, to 125. Retailers
constituted 100 of those — 65% fewer than last year, while the number of
wholesalers leaving fell 55% to 14. The manufacturing trade lost just 11
companies, as opposed to 30 a year ago, based on data the credit-information
provider released last week.
Most of the companies that quit the industry were not
involved in any financial failure, takeover or merger. Only six went bankrupt —
a 4% decrease over last year — while the number of consolidations dropped 33%
to 30.
Meanwhile, the JBT recorded 57 new business openings,
compared to 62 during the same period in 2018.
The total number of recorded jewelry businesses slipped 3.2%
in the first three months of the year, compared with the same time last year.
Some 25,037 stores were operating in the first quarter as opposed to 25,898 a
year ago.
Image: A jewelry store window display. (Flickr)
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