The announcement coincided with its full-year results, with growth driven by its jewelry brands.
6 Big Stories from 2016
Editor-in-Chief Michelle Graff weighs in on the most important news stories of the year for the jewelry industry.
Last week, we published a list of the most popular articles on NationalJeweler.com in 2016.
That list ran down the 16 most-clicked-upon stories of the year, including accounts of jewelry store closures, articles about the trends expected to shape retail, a story about one big, blue lab-grown diamond, and my blog post on the loss of one very special woman.
It’s a list that’s not all that different from what I have chosen below, for my annual recounting of the biggest news stories of the year.
1) Brick-and-mortar retailers continued to close. The latest JBT data available as of this writing shows that 895 jewelers in the United States and Canada closed their stores this year, along with 178 wholesalers and 105 manufacturers.
RELATED CONTENT: Column – What It’s Like to Close My Store
But, it wasn’t just jewelry stores that were shutting down. Macy’s announced more store closures, American Apparel stores appear to be on their way out and Sports Authority is liquidating, just to name a few.
It’s not new news, to be sure, but it’s also not a headline that’s going to change in 2017 either.
Consolidation will continue as technology transforms the way consumers shop and what they expect from retailers.
And, for those who are still stuck on the “online vs. offline” narrative, please note that online retailers are facing challenges as well and have to adjust and innovate to keep customers too. Case in point: Blue Nile, which entered into an agreement to be taken private this fall. Why? Because, try as it might by opening stores and expanding its non-bridal product offerings, the e-tailer isn’t showing growth, and growth is what shareholders like to see.
2) Technology marched on. Further to my point above about online retailers having to constantly evolve, let’s take a look at a just a couple of the innovations Amazon made this year.
In January, the company continued to expand its Dash Replenishment program by introducing the first appliances with integrated Dash technology that automatically will reorder supplies when they run low. It’s even easier than just pushing a button.
Amazon also continues to expand its brick-and-mortar presence, announcing this month that it will be opening Amazon Go, its line-less, cashier-less grocery store in Seattle, to the general public early next year.
Also making in-roads in retail this year were ChatBots, a computer program that “chats” with users in an effort to help them find
3) The technology used to grow diamonds kept advancing. And like computer technology, the progression is only expected to continue.
In October, the Gemological Institute of America published a research article discussing its examination of a 5.19-carat diamond grown using the chemical vapor deposition process.
The J color, VS2 clarity stone was the biggest CVD-grown diamond ever examined by the lab and the largest ever reported in the jewelry industry.
The GIA called breaking the 5-carat barrier a “significant milestone” for CVD technology and said, “As diamond growth techniques continue to advance, we expect to see more high-quality samples, both in size and clarity.”
In that same article, the GIA also detailed its grading of the biggest diamond ever grown using the high-pressure, high-temperature, or HPHT process, a fancy deep blue diamond nearly twice the size of its white CVD-grown counterpart.
4) It was a year of great losses and many changes. Both the jewelry industry and the world at large had to say goodbye to a lot of great people this year. National Jeweler’s Senior Editor Brecken Branstrator remembered those whom we lost in an “In Memoriam” piece published last week.
There also were a great deal of leadership changes. De Beers named a new CEO as did Shinola and Macy’s.
Katherine Bodoh was tapped to succeed her friend and mentor Ruth Batson at the American Gem Society while Anthony Capuano came on to replace the retiring Dione Kenyon at the Jewelers Board of Trade.
There also was new leadership appointed in the North American market for Trollbeads and Graff Diamonds, and a new president for Swatch Group-owned watch brand Omega.
5) Donald Trump was elected president of the United States. Retail sales rebounded and the stock market soared after the contentious U.S. election ended Nov. 8, with businessman and reality TV show host Donald J. Trump emerging as the victor.
So, what do jewelers want the new president to do for small business owners?
The ones who took our post-election survey said they want Trump to cut taxes for both U.S. citizens and small businesses, as well as decrease regulations and reduce health care costs.
Quite a few also mentioned Trump addressing the issue of internet sales tax, though that’s actually an issue that’s going to have to go through Congress, where it has been debated for more than a decade.
6) Auction sales sputtered. Big gemstones faltered at auction in the second half of the year, in perhaps what was a sign of economic weakness in a number of big markets and geo-political uncertainty worldwide.
While 2016 started out strong--the Oppenheimer Blue took the title of most expensive gemstone ever sold at auction when it went for $57.5 million at Christie’s Geneva in May--there were a few notable missed sales in the second half of the year.
In late June, there was no buyer willing to meet the $70 million reserve price for the 1,109-carat rough diamond dubbed Lesedi la Rona, the biggest diamond find in a century, though that stone is being reevaluated for possible sale in 2017.
A 27.35-carat oval diamond (above) predicted to sell for between $2 and $2.5 million didn’t find a buyer at Sotheby’s New York in September, and Sotheby’s experienced the same with a jadeite bangle predicted to sell for as much as $9 million a couple weeks later in Hong Kong.
In November, “The Sky Blue Diamond” sold toward the low end of its estimated range at Sotheby’s Geneva--though there was a fancy intense pink diamond in that same sale that went for $20.8 million--and Bonhams could not find a buyer for the gemstone I dubbed the “Family Guy Pearl.”
What else happened this year that was of note for your business? Share it with me in the comments below or email me at michelle.graff@nationaljeweler.com.
Happy New Year!
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
The ad aims to position platinum jewelry as ideal for everyday wear.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.