Market Developments

Exclusive: Jewelers' sales, optimism high

By Michelle Graff and Hannah Connorton
Dec 12, 2011

New York--Sales continue to pace ahead of last year for many jewelers, who say their strongest days are, hopefully, still ahead of them.

Retailers also report that bigger-ticket items are beginning to move, thanks to more-upbeat consumers who are in a better buying mood than they have been over the past couple of holiday seasons.

National Jeweler publishes a weekly holiday sales roundup every Monday throughout the holiday season. The roundups are compiled using interviews with independent retailers from five regions of the country: Northeast, Southeast, Midwest, South Central and West. This is the fifth sales report of the season.

NORTHEAST
“Tire-kickers” are becoming buyers at Jay Roberts Jeweler in Marlton, N.J., said owner Jake Spigelman. He said the store had a solid weekend in terms of both traffic and sales.

“The pace seems to be picking up, which is usually what starts to happen around the 10th of December every year,” he said.

To date this holiday season, the store has made two large sales, including a yellow diamond worth upwards of $50,000 that was purchased on a whim by a customer who came in to buy a $1,100 piece. “You never know what triggers people,” he said.

Having these two big sales already in the books lessens the pressure for the remainder of the holiday season, which Spigelman said he expects to be strong.

“I’m very optimistic. People seem to be in a buying mood,” he said. “They seem to be pulling the trigger. It’s just a matter of finding what they want.”

Weekend sales and traffic also were strong at Greenwich Jewelers in New York, said co-owner Christina Gandia Gambale. The store had an Alexis Bittar trunk show on Friday, which helped bring shoppers into the store.

To date, sales and traffic are pacing slightly ahead of last year, and margins are up as well, with customers more willing to push the envelope on price and make larger purchases earlier in the season. 

While all signs so far have been positive, it is the last 10 days before Christmas that are really the “tell-all” that will dictate the success of the season, Gambale said.

Like other jewelers, she is anticipating a strong finish.

“People want to be happy. They want to be in a good mood. They want to feel the joy of the holidays,” she said. “People want to forget about what’s going on (with the economy) for a month. The vibe is definitely more upbeat, more willing.” 

SOUTHEAST
Sales are up 15 percent year-over-year at the Cumberland Diamond Exchange in Smyrna, Ga., though foot traffic is down slightly, said President Mark Jacobson.

Sales were especially strong on Sunday, with the store maintaining special Sunday hours throughout the holiday season. He said shoppers were buying diamond earrings, fashion jewelry and bridal.

“The people that are buying are spending a substantial amount of money,” Jacobson said. “I assume this week is going to be a huge traffic flow. I am ready for it.”

Sales over the weekend at Gause & Son Jewelers in Ocala, Fla., were on par with the same weekend last year, said Cammie McCloud. She said many browsers are beginning to buy, though the store is still a few days out from its busiest time of the year.

“The mad rush-rush hasn’t started yet,” she said, adding that they expect to be busy this weekend and throughout next week.

McCloud said quite a few shoppers are buying for themselves this holiday season. The store is also doing well with Rolex watches and has sold a number of diamond necklaces, including a 10-karat piece that sold for $30,000 over the weekend.

“There are definitely nicer pieces being sold,” she said. “We’re just keeping our fingers crossed for the next 10 days.”

MIDWEST
Weekend sales were fair at Garfinkles Fine Jewelry in Highland Park, Ill., according to owner Jill Garfinkle.

“It was better than last Saturday, but not as good as I would have liked,” she said. “I still don’t see the action.”

Garfinkle said while she’s hopeful that things will pick up in the remainder of the season, it’s been years of slow business. People are spending money this year that they didn’t last year, she said, which is better, but not enough.

“You hear the rest of the country is doing great, and you want to know why you’re not,” she said. “The jury’s still out on it. Hopefully, things will improve.”

Sales were average and seemed to be gaining momentum for Gene Gragg, owner of Metal Works Fine Jewelry in Yorktown, Ind.

“People are starting to buy now,” he said. “In weeks before I had a lot of lookers, but now people are actually starting to buy.”

Earrings and pendants in both gold and silver are popular among customers but not rings or diamonds, Gragg said. He carries colored birthstones and gemstones, including unusual colored stones such as apatite.

“People seem to like it,” he said of the pale-green gem.

Gragg added that his custom pieces were among the biggest items sold.

“We’re probably going to peak on sales by this weekend,” he said, which is normal for the store. “The last week is a lot of guys doing their last-minute gifts.”

SOUTH CENTRAL
Sales were “phenomenal” on Saturday for Jeff Fox, owner of Barnes Jewelry in Amarillo, Texas.

“There have been a lot of people and everybody’s buying,” Fox said. “It seems like there’s a lot of pent-up demand that’s finally being satisfied.”

While there have been a few bigger sales, it hasn’t been one big item that’s made the day, “just non-stop traffic and buying, from $50 sterling silver items to Rolex watches to 2-carat diamonds,” he said.

“It’s good, solid business,” Fox said.

He added that’s he’s already ahead of last year and is doing well earlier than he has been for several years.

“As long as the majority of men continue to procrastinate and we get them, at the end, everything’s good,” Fox said.

He said he expects business to continue to gain momentum as the season continues.

Despite a lengthy Christmas parade that “stymied” the store, Kelly Newton of Newton’s Jewelers in Fort Smith, Ark. had a successful weekend.

“We slowed down in the middle of last week and then the weekend got busy,” Newton said, “There were more buyers, foot traffic had slowed down a little.”

Selling at his store has been Rolex, Lazare Kaplan, Simon G., Jude Frances and other brands. Diamond jewelry has been popular, as well as white gold and platinum.

Sales are up “quite a bit” as compared to last year, Newton said, but he’s exercising optimistic caution as the season continues.

“I have to hope that things keep percolating,” he said.

WEST
Traffic was steady at Hart Jewelers in Grants Pass, Ore., said owner Tom Hart. Browsers and buyers both turned out, and while there were no big-ticket items sold over the weekend, many smaller tickets sold.

“It seems like the guys are out shopping a little earlier this year,” Hart said.

Diamond rings have been popular at the store, “nothing huge,” Hart said, but primarily in the $2,000 range.

“This is pretty much normal for this time of year,” he said, “The final week will be the big push. I think we’ll be doing better than last year, so we’re happy.”

Weekend sales were “really good” for Steve Goldfarb, owner of Alvin Goldfarb Jeweler in Seattle and Bellevue, Wash.

“Foot traffic and sales were unbelievable in Seattle, and sales were great in Bellevue,” he said.

Designer Franco Pianegonda made an appearance at Goldfarb’s Bellevue location on Saturday for a trunk show, and “the response was great,” he said.

“If you’re waiting for customers to walk in, they may or may not,” Goldfarb said, “You need to give them a reason to walk in the door.”

While his customers have shown interest in timepieces throughout the year, Goldfarb said that rings have been popular this season for him, and not in the engagement or wedding category. Black diamond rings are a top item, and he’s also been getting more calls for gold jewelry.

“We’ve had a lot of platinum and white gold sales, and now there’s calls for yellow gold like there hasn’t been in years,” Goldfarb said.

Sales are substantially up for the jeweler this year, who expects slow, steady growth for his business, something he attributes to a better feeling in the economy.

“I keep reading that the shoppers are done,” he said, “I will tell you clearly that is not the case. Get ready--they’re coming.”

 

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