ColumnistsMar 12, 2024
The PR Adviser: Closing Sales and Following UpColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire Brands
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com.
Brands have been in the news of late, with Watches of Switzerland’s acquisition of the U.S. arm of Roberto Coin, and Richemont buying Italian jewelry brand Vhernier.
This follows earlier news that De Beers Group will dissolve Forevermark in the United States and other markets and relaunch it as a diamond jewelry brand in India.
And, of course, we had last year’s announcement that Rolex is acquiring Bucherer.
These developments got me thinking about a related question, and that is, why do retailers struggle to fire brands when they no longer perform for them?
You might think such decisions would always be as simple, as the numbers are either working or they’re not.
If the sales and profitability are good for business, you keep the brand. If the metrics don’t work, you fire the brand.
How complicated is that? As it turns out, it’s pretty complicated.
In the face of declining sales, reduced margins, and unhealthy inventories, retailers continue to forge ahead with brands that once were important to them but have long since ceased to enjoy favored-partner status.
They don’t like the brand enough to cheerlead for it internally or externally but still remain indifferent enough to continue to defer on separation decisions.
Psychologists have several explanations for why this happens, but the two that stand out for me are the status quo bias, and the sunk-cost fallacy.
In the first instance, the status quo bias, we know we should make a change, but the headaches associated with doing so far outweigh the benefits of pulling the plug.
In “A New Way To Think: Your Guide to Superior Management Effectiveness,” Roger Martin wrote, “In short, research into the workings of the human brain suggests that the mind loves automaticity more than just about anything else—certainly more than engaging in conscious consideration. Given a choice, it would like to do the same thing again and again.”
There is a tendency to rationalize the status quo bias as being related to habitual loyalty; we do it because we’ve always done it, it’s easy. The reality, of course, is that it is more aptly related to inertia.
We don’t want to change because doing so means a ton of work, and we’re not looking to take on more work.
Related stories will be right here …
This follows earlier news that De Beers Group will dissolve Forevermark in the United States and other markets and relaunch it as a diamond jewelry brand in India.
And, of course, we had last year’s announcement that Rolex is acquiring Bucherer.
These developments got me thinking about a related question, and that is, why do retailers struggle to fire brands when they no longer perform for them?
You might think such decisions would always be as simple, as the numbers are either working or they’re not.
If the sales and profitability are good for business, you keep the brand. If the metrics don’t work, you fire the brand.
How complicated is that? As it turns out, it’s pretty complicated.
In the face of declining sales, reduced margins, and unhealthy inventories, retailers continue to forge ahead with brands that once were important to them but have long since ceased to enjoy favored-partner status.
They don’t like the brand enough to cheerlead for it internally or externally but still remain indifferent enough to continue to defer on separation decisions.
Psychologists have several explanations for why this happens, but the two that stand out for me are the status quo bias, and the sunk-cost fallacy.
In the first instance, the status quo bias, we know we should make a change, but the headaches associated with doing so far outweigh the benefits of pulling the plug.
In “A New Way To Think: Your Guide to Superior Management Effectiveness,” Roger Martin wrote, “In short, research into the workings of the human brain suggests that the mind loves automaticity more than just about anything else—certainly more than engaging in conscious consideration. Given a choice, it would like to do the same thing again and again.”
There is a tendency to rationalize the status quo bias as being related to habitual loyalty; we do it because we’ve always done it, it’s easy. The reality, of course, is that it is more aptly related to inertia.
We don’t want to change because doing so means a ton of work, and we’re not looking to take on more work.
As for the principle of sunk-cost fallacy, that’s a very real thing and a powerful impediment to change.
We justify the years we’ve spent, the money we’ve invested in inventory, training, marketing, and even shop-in-shops.
We worry our team will struggle with change, when, in fact, they’re often well ahead of the principles of the business, as they’ve lived it on the front lines and have seen the decline in interest and/or effectiveness of the brand.
We also worry that customers we’ve sold a given brand to over the years will regret having purchased the brand from you if you choose to discard the line. Will they feel betrayed and take their business elsewhere?
Every restaurant that ever closed its doors has disappointed some diners. Every store that has ever closed had some fans. And every brand that was important at one time has customers who are collectors and repeat buyers.
The problem is, in all cases, there just weren’t enough of them. Things change and people move on. They are rarely as distraught as your worst fears may conjure.
In fact, one of the paradoxes of consumer behavior is that while it is commonly accepted that shoppers love automaticity, and automaticity often comes from brand consistency, we are also apt to seek out change.
In “Using Behavioral Science in Marketing: Drive Customer Action and Loyalty by Prompting Instinctive Responses,” Nancy Harhut wrote, “People are hardwired to notice things that are different from what surrounds them.”
It’s one of the reasons many retailers love to go to trade shows, to experience what’s new, and it is one of the reasons I believe quality physical retail stores will always be relevant.
Customers love the sense of excitement and discovery often delivered in the best retail environments.
As for those brands you need to address, my advice is, if you can’t bring yourself to completely sever ties, recalibrate your investment to align with the brand’s relevance to your business today, not what it used to be.
That means adjusting your inventory, your case space, and your training and marketing spend.
Block out the noise, including the noise inside your head, and do what’s right for your business.
Happy retailing!
Editors' Picks
Sponsored by
More on Columnists
The Latest
CrimeAug 25, 2026
Florida Woman Scammed Out of $1.5M in Jewelry, Precious MetalsTwo suspects have been arrested in connection with the complex phone scam.
Events & AwardsAug 25, 2026
SSEF Opens 2026 Applications for Gemology Education ScholarshipsThe annual awards cover tuition for an on-site educational course at the Swiss lab, as well as flights and lodging.
TrendsAug 25, 2026
Brent Neale Celebrates Blackberry Farm’s Anniversary With JewelryThe jeweler partnered with the Tennessee resort to honor its 50th anniversary with limited-edition blackberry pendants and earrings.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
EditorsAug 24, 2026
Q&A: Reeds Jewelers VP Genna Zimmer on 80 Years in BusinessThe third-generation jeweler shared how the North Carolina retailer is celebrating this milestone and the love story that started it all.
Weekly QuizAug 20, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsAug 24, 2026
Rio Grande, MetalWerx Host Argentium Silver WorkshopThe class, led by renowned metalsmith Cynthia Eid, highlighted Argentium silver as an alternative to gold amid high prices.
Events & AwardsAug 24, 2026
JIS Miami Opens Fall 2026 RegistrationThe show is slated for Oct. 16-19 at the Miami Beach Convention Center.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
CollectionsAug 24, 2026
Francesca Villa Honors Napoleon, His Empresses In New CapsuleThe “Empresses” capsule uses 19th-century medals depicting Napoleon, Joséphine, and Marie-Louise across five one-of-a-kind pieces.
SurveysAug 21, 2026
These Are 2026’s Hottest Retailers, Says NRFThe retailers at the top of the list offer affordable products and fun, discovery-fueled experiences.
WatchesAug 21, 2026
Bremont Names Former Vacheron Constantin Exec CMODaniel Bing was formerly the marketing director for the Americas at Vacheron Constantin.
CollectionsAug 21, 2026
Bijules, Kamyen Serve Up ‘Topspin’ Tennis Bracelet Ahead of US OpenIn our Piece of the Week, the designers reimagine the tennis bracelet with green enamel wrapped around a strand of “Desert Diamonds.”
PodcastsAug 20, 2026
Episode 8: Diamond Industry Update With David Bonaparte & Ronnie VanderLindenThe industry veterans join the podcast to discuss diamond marketing, the FTC Jewelry Guides, and lobbying for lower tariffs.
TechnologyAug 20, 2026
A New AI-Powered Gemstone Identification App Is HereFounder Vik Westermann said the app is a “starting point” to inspire people to work with appraisers and gem labs, not replace them.
AuctionsAug 20, 2026
Storied Unicorn Brooch Up for Auction Gallops to New Home The Verdura brooch, which belonged to the late Virginia Fortune Ryan Ogilvy, was sold to a private collector in Asia.
Events & AwardsAug 20, 2026
MJSA Education Foundation Names 5 Scholarship WinnersThe five students were awarded a total of $10,000 through the nonprofit’s 2026 “Future of Jewelry Making” scholarship.
MajorsAug 20, 2026
Plumb Club Elects 2026-2027 BoardSteven Lerche is now beginning his term as the youngest member to become president of The Plumb Club’s elected executive committee.
MajorsAug 19, 2026
Mike Alexander To Succeed Scott Murphy as Jewelers Mutual CEO Murphy will retire at the end of the year and Alexander, currently the company’s president, will take over at the start of 2027.
Policies & IssuesAug 19, 2026
Spinelli Kilcollin Embraces Dupes With Trade-In ProgramThe jeweler is encouraging customers who own lookalike rings to come into the store and trade them for credit towards an authentic piece.
MajorsAug 19, 2026
Zales Wants You to Wear Fine Jewelry Every DayThe new campaign, “You Are The Occasion,” discourages shoppers from saving their fine jewelry for special occasions only.
SourcingAug 19, 2026
Vasant Mehta, a Dedicated Diamond Industry Leader, Dies at 81Mehta led India’s GJEPC through the 2008 financial crisis and was respected worldwide for his wisdom, integrity, and knowledge.
CrimeAug 18, 2026
2 California Men Arrested in Fatal Vehicle Smash RobberyOne is the driver who allegedly crashed a car into a Sacramento jewelry store in April, striking a 71-year-old employee who later died.
CrimeAug 18, 2026
Thieves Snatch $1M in Jewelry From New Jersey Jeweler9lakha Jewelers in Iselin, New Jersey, was the target of a smash-and-grab robbery on Aug. 8.
Lab-GrownAug 18, 2026
Ring Concierge, Kendall Jenner’s Tequila Brand Collab on GiveawayThe jeweler has partnered with 818 Tequila to gift lab-grown diamond studs to a bride-to-be and their bridal party.
Events & AwardsAug 17, 2026
Exhibition on Louis Comfort Tiffany’s Studios to Open at The MetThe exhibition will feature more than 100 drawings of stained-glass lampshades, windows, and more, many created by women and émigrés.
CollectionsAug 17, 2026
Marquise Diamonds Dance in Spinelli Kilcollin’s ‘Wren’ CollectionMarquise-cut diamonds in drop charms are the center of the new collection, reflecting the movement of a dancer in modular styles.
Events & AwardsAug 17, 2026
There’s a New Jewelry Show Coming to FloridaThe inaugural Fort Lauderdale Jewelry, Antique, & Object Show will be held from Jan. 28 through Feb. 1, 2027.
