Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
EditorsMay 08, 2015
Drilling down on data
It always stresses me out when we run a story about a survey or data and a few days later I see another article pop up with data that directly conflicts with what we just published.
You will understand why, then, my blood pressure rose last week when we printed this report on jewelry sales being “weak” based on the latest U.S. government data and then, a few days later, reports emerged from the Global Retailing Conference in Tucson citing MasterCard data that claimed 25 straight months of year-over-year growth for jewelry sales.
This contradicts with what the U.S. Commerce Department has been saying for the past five months: that jewelry sales are down compared with a year ago.
So, what’s the real story?
To begin with, I think we need to look at the well from which each source is drawing its data.
The government uses data derived from samples and it’s measuring sales of jewelry at tens of thousands stores nationwide, including specialty jewelry retailers (stores that sell jewelry and little or nothing else) as well as at multi-line retailers (places like Walmart, J.C. Penney, Kohl’s, etc.) and online-only retailers (Blue Nile, etc.).
Ken Gassman, a longtime source of mine who follows and tracks data on the jewelry industry more closely than anyone else I know of, said he considers this data from the government to be the most reliable, as it tracks very closely to proprietary numbers he sees from independents jewelers as well as the numbers from the big public companies.
MasterCard’s data, meanwhile, is a combination of MasterCard transactions and other payment forms that the company puts together and, like the government data, is intended to paint a picture of total retail spend in specific categories.
Or, as MasterCard explains it, “MasterCard SpendingPulse deploys a proprietary methodology that takes our aggregated and anonymous transaction data and uses additional data and algorithms to deliver total retail spend—across credit and debit cards, cash and check, both online and offline.”
Now, one of the reasons for the discrepancies in the data that Gassman suggested was that today’s jewelers, specifically independents, don’t offer store credit as widely as their predecessors did, so more consumers are financing their purchases using other means, including MasterCard.
In addition, there are also fewer independents out there today and the Commerce Department data shows us
Editors' Picks
Sponsored by
that those that are in business are losing market share to other retailers. Perhaps shoppers today are just less loyal overall, and prefer just to use MasterCard or Visa to shop wherever they like. Maybe they buy their towels and sheets from Macy’s, but turn Anthropologie for their clothing, DSW for their shoes, and buy some jewelry online and some from their neighborhood retailer, all the while making their shopping a mix of online and in-store browsing and buying.
In an effort to test Gassman’s theory, I asked MasterCard if they could give me their data related to MasterCard spending alone, without the “additional data and algorithms” used to deliver total retail spend, so we could see just how much of the spending on jewelry relates to more use of MasterCards vs. more spending on jewelry as a whole. But a spokeswoman for the company—which, after having my request all week, got back to me at 4:45 p.m. on Thursday, just under the buzzer!—said they don’t release that data.
So, in conclusion, I am not saying that there necessarily is anything wrong with the MasterCard data.
I am just pointing out that it is not necessarily painting an accurate picture of U.S. jewelry sales but could, in fact, be telling us something different: What we may well be seeing is not an increase in jewelry sales but a shift in how consumers are paying when they do buy jewelry.
In an effort to test Gassman’s theory, I asked MasterCard if they could give me their data related to MasterCard spending alone, without the “additional data and algorithms” used to deliver total retail spend, so we could see just how much of the spending on jewelry relates to more use of MasterCards vs. more spending on jewelry as a whole. But a spokeswoman for the company—which, after having my request all week, got back to me at 4:45 p.m. on Thursday, just under the buzzer!—said they don’t release that data.
So, in conclusion, I am not saying that there necessarily is anything wrong with the MasterCard data.
I am just pointing out that it is not necessarily painting an accurate picture of U.S. jewelry sales but could, in fact, be telling us something different: What we may well be seeing is not an increase in jewelry sales but a shift in how consumers are paying when they do buy jewelry.
More on Editors
The Latest
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
FinancialsApr 24, 2024
Kering’s Jewelry Brands a Bright Spot in Tough Q1The luxury titan posted declining sales, weighed down by Gucci’s poor performance.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at SeaThe 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
