Independents

More Than 300 Jewelers Went Out Of Business in Q3

IndependentsDec 01, 2016

More Than 300 Jewelers Went Out Of Business in Q3

Year-to-date, nearly 900 retailers in the U.S. and Canada have closed up shop, along with 178 wholesalers and 104 manufacturers.

New York--The trend of jewelry businesses shutting down continued in the third quarter, with the total number of closures pacing well ahead of last year.

The Jewelers Board of Trade’s vital statistic and trend data report for the third quarter shows that a total of 400 U.S. and Canadian jewelry businesses called it quits in the third quarter: 318 retail jewelers/repairers, 57 wholesalers and 25 manufacturers.

That is up 42 percent from the third quarter 2015, when 282 jewelry businesses closed, including 240 retail jewelers/repairers, 34 wholesalers and eight manufacturers.

Year-to-date, a total of 1,177 jewelry business owners ceased operations: 895 retail jewelers/repairers, 178 wholesalers and 104 manufacturers.

That is a 57 percent increase over last year.

“The trend is not reversing itself. There’s a downward trend in the number of retailers,” JBT President and CEO Anthony Capuano said in an interview Wednesday.

The reasons for the closures have been well documented.

Baby boomer store owners are reaching retirement age and many don’t have children who are interested in staying in the family business.

RELATED CONTENT: Column--What it Feels Like to Close My Store

At the same time, baby boomer consumers are entering a phase in their life in which they are looking to downsize and are not buying as much, for lack of a better word, stuff, choosing instead to spend their money on experiences.

Their children, the millennials, also value spending money on experiences over physical possessions, and many don’t enjoy the same level of middle-class security as the generations before them.

Further complicating the picture for brick-and-mortar retailers is increased competition, not just in terms of what consumers can and want to buy--experiences over physical possessions--but from online sellers of jewelry.

“Retailers are really fighting for those dollars because they are fighting a whole pattern of purchasing,” Capuano said. “You just have to be really good to survive and prosper.”

While the continually climbing number of closures among independent retailers is making news in the jewelry industry, it’s an old story for those who operated family-owned furniture and hardware stores and saw their industries taken over by large chains years ago.

RELATED CONTENT: Analysis--State of the Majors

“I think this is sort of catch up right now,” Capuano said, though he noted that the personal nature of jewelry means that the independents in his industry are better positioned for survival than those in other fields.

As he put it, “Buying a screw is not a personal experience.”

Capuano

also pointed to custom jewelry as an area that can offer the independent jeweler differentiation, and it seems that retailers of all sizes already are taking advantage of their ability to create made-to-order rings.

In a recent National Jeweler/Jewelers of America survey, more than half of jewelers said their custom jewelry sales have increased over the past three years, and Signet Jewelers is emphasizing custom in its advertising campaign for Jared the Galleria of Jewelry this holiday season.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Recorded WebinarsMay 07, 2021
Watch: The Office Called, It Wants You Back

As more people prepare to return to work, two JVC attorneys discuss vaccines, health screenings, permanent remote work, and more.

Events & AwardsMay 07, 2021
Here’s the Latest on Health, Safety Measures for JCK Las Vegas

They include temperature screenings, a “no handshakes, no hugs” policy, and more.

CollectionsMay 07, 2021
Muzo Colombian Emeralds Debuts E-Commerce, New Collection

It’s the famed emerald miner’s first entirely shoppable website.

Brought to you by
How to Engage and Sell to Millennials

Millennials were once feared in the diamond industry, but now this younger generation has become today’s largest diamond buying demographic.

TrendsMay 07, 2021
Piece of the Week: Brent Neale’s Emerald Knot Ring

It pairs May’s birthstone with bright turquoise.

Weekly QuizApr 29, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of May 3-7, 2021.
Take the Quiz
Policies & IssuesMay 06, 2021
US Economy Could See Fastest Growth Since the ‘80s

The National Retail Federation expects it to grow nearly 7 percent in 2021 as businesses reopen and consumer confidence continues to rise.

TrendsMay 06, 2021
Amanda’s Style File: Celebrate May Birthdays with Emeralds

May’s birthstone has those born in other months feeling green with envy.

Brought to you by
A New Golden Age

Gold has had its share of ups and downs over the last 5 decades. Here’s why the metal is having another big comeback.

IndependentsMay 06, 2021
Boston Gets Its First Rolex Boutique Courtesy of Long’s Jewelers

It’s located in Long’s new boutique in the Back Bay neighborhood.

×