Policies & IssuesMar 02, 2022
When It Comes to Russian Diamonds, Industry Is Watching, WaitingColumnistsMar 08, 2022
On Data: 2021 Ended on a High Note, But ...
Last year was great and 2022 has started out strong, but, Sherry Smith notes, myriad factors could impact sales going forward.
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
In a recent webinar with National Jeweler’s Michelle Graff, I joined Peter Smith and Edahn Golan to discuss what business in 2022 might look like.
An interesting conversation among the four of us ultimately concluded it will be difficult to predict how long the tide will continue to rise for the jewelry business.
In fact, if the last two years have taught us anything, it is to expect the unexpected, and there is every reason to believe that will also be true this year.
To make matters even more challenging, we now have a dangerous military conflict in Europe to factor into the equation.
While we hope for continued growth, we must also recognize there are many variables outside of our control that could negatively impact results this year; inflation, supply chain issues, and labor shortages, to name just a few.
Given this uncertainty, it would be prudent to pay attention to both your own data as well as the broader industry data, and to monitor the trends as closely as possible.
In reviewing the numbers from 2021, we saw independent jewelers’ gross sales increase 41 percent over 2020.
Number of units sold increased a healthy 25 percent, and there was a 13 percent increase in the average retail sale.
Diamond products performed incredibly well for independent jewelry retailers, representing nearly half (49.3 percent) of total sales in 2021, with category increases in all the key performance indicators.
Bridal, which includes loose diamonds, semi-mounts, and complete engagement rings, made up 23.8 percent of annual sales, and was up 36 percent in gross sales year-over-year.
The category was also up 23 percent in units sold and 11 percent in average retail sale compared with 2020.
Loose diamonds comprised 58 percent of the bridal category, with an average retail sale of $6,769, up from $6,148 in 2020.
The Northeast had the highest average retail sale in loose diamonds at $7,400, followed by the Southeast at $7,282 and the West at $7,217.
Related stories will be right here …
An interesting conversation among the four of us ultimately concluded it will be difficult to predict how long the tide will continue to rise for the jewelry business.
In fact, if the last two years have taught us anything, it is to expect the unexpected, and there is every reason to believe that will also be true this year.
To make matters even more challenging, we now have a dangerous military conflict in Europe to factor into the equation.
While we hope for continued growth, we must also recognize there are many variables outside of our control that could negatively impact results this year; inflation, supply chain issues, and labor shortages, to name just a few.
Given this uncertainty, it would be prudent to pay attention to both your own data as well as the broader industry data, and to monitor the trends as closely as possible.
In reviewing the numbers from 2021, we saw independent jewelers’ gross sales increase 41 percent over 2020.
Number of units sold increased a healthy 25 percent, and there was a 13 percent increase in the average retail sale.
Diamond products performed incredibly well for independent jewelry retailers, representing nearly half (49.3 percent) of total sales in 2021, with category increases in all the key performance indicators.
Bridal, which includes loose diamonds, semi-mounts, and complete engagement rings, made up 23.8 percent of annual sales, and was up 36 percent in gross sales year-over-year.
The category was also up 23 percent in units sold and 11 percent in average retail sale compared with 2020.
Loose diamonds comprised 58 percent of the bridal category, with an average retail sale of $6,769, up from $6,148 in 2020.
The Northeast had the highest average retail sale in loose diamonds at $7,400, followed by the Southeast at $7,282 and the West at $7,217.
Moving on to other categories, watches represented 14.9 percent of annual sales in 2021 and, like the diamond categories, was up in gross sales, units sold, and average retail sale.
The category of “services” was 12.1 percent of 2021’s total annual sales and also was up in all key performance indicators.
While the colored stone category comprised only 7 percent of independent jewelers’ annual sales for 2021, it too experienced double-digit growth, with a whopping 50 percent increase in gross sales, a 28 percent increase in units sold, and a 17 percent increase in average retail sale.
Colored stone rings made up 42 percent of total colored stone categories, followed by earrings and pendants.
The sterling silver and alternative metal categories experienced a 29 percent increase in gross sales, a 19 percent increase in units sold, and a 9 percent increase in average retail sale.
Rolling 12 months, February 2021 through January 2022, showed a 41 percent increase in gross sales, a 25 percent increase in units sold, and a 13 percent increase in average retail sale when compared with the prior-year period (February 2020 through January 2021).
Looking at jewelry sales so far this year, January 2022 was up 14 percent in gross sales over January 2021. There was a slight decline in number of units sold, 2.6 percent, but a 17 percent increase in average retail sale.
Valentine’s Day sales were strong, with February ultimately up 16 percent in gross sales, up 6 percent in units sold, and 9 percent up in average retail sale when compared with February 2021.
The diamond categories also performed well in February and were up 19 percent in gross sales, up 7 percent in units sold, and up 12 percent in average retail sale.
According to Kiplinger’s latest forecast on retail sales and consumer spending, expect retail sales to continue to do well for several months due to improvements in supply chain issues.
But keep in mind that as the decline in COVID cases continue, we will most likely see consumers shift their spending to travel, dining out, travel, concerts, etc.
So far, 2022 is off to a stellar start, and we’re looking forward to seeing how the first quarter will play out for our independent channel.
In my next On Data column, we will look at the performance of that first quarter.
But keep in mind that as the decline in COVID cases continue, we will most likely see consumers shift their spending to travel, dining out, travel, concerts, etc.
So far, 2022 is off to a stellar start, and we’re looking forward to seeing how the first quarter will play out for our independent channel.
In my next On Data column, we will look at the performance of that first quarter.
More on Columnists
The Latest
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
MajorsMay 09, 2024
Watches of Switzerland Pays $130M for Roberto Coin Inc.The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
Weekly QuizMay 09, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
IndependentsMay 09, 2024
Kyle Edward Fine Jewelry to Close Salisbury StoreThe company’s Easton location will remain open.
MajorsMay 09, 2024
JBT Elects New ChairmanBrian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Supplier BulletinMay 08, 2024
Fusing Past and Present at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry and Watch Show
EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
AuctionsMay 07, 2024
Sotheby’s to Auction Sylvester Stallone’s WatchesThe highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
CollectionsMay 07, 2024
Phillip Gavriel Pays Tribute to Venice With New CollectionThe “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
Events & AwardsMay 07, 2024
JA Now Accepting Applications for New Bench Jeweler ScholarshipThe Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
Policies & IssuesMay 06, 2024
Rolex Files Objection to Hallmark’s New Trademark ApplicationThe Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
EditorsMay 06, 2024
Q&A: 8 Questions With Anglo American’s Benny Oeyen The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
MajorsMay 06, 2024
Malabar Gold & Diamonds Opens 4th U.S. ShowroomThe Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
Events & AwardsMay 06, 2024
Ben Bridge Jeweler Accepting Applications for Lonia Tate ScholarshipIt will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado JewelerWheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight ProgramPGI partnered with four new and seven returning designers for its annual platinum capsule collection.
MajorsMay 03, 2024
Kristie Nicolosi Joins WJA Board AgainNicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the DerbyKarina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
