CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
IndependentsMay 04, 2016
Jewelry Business Closures Climb 34% in Q1
A number of different factors are influencing the trend and it’s not expected to reverse course anytime soon.
Warwick, R.I.--The number of companies exiting the jewelry industry continues to climb due to a number of different factors, and the trend is not expected to reverse course anytime soon.
Data released this week by the Jewelers Board of Trade shows that in the United States and Canada, a total of 335 businesses ceased operations in the first quarter 2016, compared with 250 in the first quarter 2015. That’s a 34 percent increase.
Closings among manufacturers drove up the first quarter percentage increase as they more than doubled, from 15 in the first quarter 2015 to 34 this year.
The number of wholesalers ceasing operations rose from 38 to 46, a 21 percent year-over-year increase, while the number of retailers closing climbed from 250 to 255.
“The factors are in place for there to be fewer stores, for that pace to pretty much continue as it is.” --Anthony Capuano, JBT presidentThere also was a jump in the number of consolidations (sales/mergers), which rose from 28 in Q1 2015 to 53 in the first quarter this year, an 89 percent jump.
In an interview with National Jeweler on Monday, former JBT President Dione Kenyon, who will continue with JBT on a part-time basis through the summer, said the same factors that have been contributing to business closings since they began to spike in 2014 continue to do so today.
Among them are the retirement of baby boomer-aged store owners; competition from online sellers; and consumers with less discretionary income and more choices.
Both Kenyon and JBT’s new president, Anthony Capuano, agreed that the trend will continue for the foreseeable future.
Addressing specifically the closing of retail stores, which increased 29 percent in the first quarter, Capuano noted that the aging ownership of the family-owned independent jewelers and the shift to online retailing, “aren’t going to go away overnight.”
“The factors are in place for there to be fewer stores, for that pace to pretty much continue as it is,” he said.
Despite the continually climbing closures, Kenyon pointed out that there are bright spots in the industry, jewelers who have embraced technology and/or began thinking outside the box who are doing well.
There are also certain product categories that appear to have a head of steam among consumers.
According to statistics just released by De Beers, U.S. diamond jewelry sales grew 4 percent year-over-year in
Editors' Picks
Sponsored by
2015. The U.S. remains the world’s No. 1 market for polished diamonds, increasing its share from 42 to 45 percent last year.
It’s also worth noting that independent jewelers aren’t the only brick-and-mortar retailers closing their doors.
Department store chains, for example, have been forced to shutter hundreds of stores--most recently, Sears announced it would be closing 78 additional locations--and according to The Wall Street Journal, even more are needed.
The WSJ cited a report from Green Street Advisors stating that six of the U.S.’s largest department store chains need to shutter a total of 820 stores among them in order to get back to the same level of profitability they enjoyed a decade ago.
It’s also worth noting that independent jewelers aren’t the only brick-and-mortar retailers closing their doors.
Department store chains, for example, have been forced to shutter hundreds of stores--most recently, Sears announced it would be closing 78 additional locations--and according to The Wall Street Journal, even more are needed.
The WSJ cited a report from Green Street Advisors stating that six of the U.S.’s largest department store chains need to shutter a total of 820 stores among them in order to get back to the same level of profitability they enjoyed a decade ago.
More on Independents
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
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.
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.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
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.
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.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
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.
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.
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.
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.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
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.
