Recorded WebinarsJan 17, 2023
Retail Trends With JA’s ’20 Under 40’ ColumnistsJan 24, 2023
On Data: Here’s How Independent Jewelers Did in 2022
Sherry Smith breaks down retailers’ performance last year, including how natural diamonds fared vs. lab-grown.
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
Despite wide-ranging speculation about what sales results might be following 2021, the strongest year in the history of our industry, 2022 turned out to be a good year, all things considered.
Gross sales finished flat with independent jewelers. The momentum from the COVID economy (good for our business, less so for other luxury) parlayed into strong first and second quarters.
A more challenging environment settled in at the end of the second quarter, when a shortfall in unit sales (usually a good proxy for declining foot traffic) chipped away at gains made in the first half of the year.
Overall gross sales were down only 1/10 of 1 percent (basically flat) when compared with 2021, while units sold slipped 5 percent year-over-year in 2022.
Despite declines in some key performance indicators, the average retail sale ended the year up 6 percent.
One can speculate about why—the rising price of diamonds, fluctuations in metal pricing, economic climate, inflation, etc.—but the average retail sale has continued its four-year upward trajectory.
Gross profit dollars in 2022 were down 2 percent, potentially a result of some creative pricing practices in the fourth quarter.
The positive results in 2022 did not play out evenly across all categories, however.
Gross sales finished flat with independent jewelers. The momentum from the COVID economy (good for our business, less so for other luxury) parlayed into strong first and second quarters.
A more challenging environment settled in at the end of the second quarter, when a shortfall in unit sales (usually a good proxy for declining foot traffic) chipped away at gains made in the first half of the year.
Overall gross sales were down only 1/10 of 1 percent (basically flat) when compared with 2021, while units sold slipped 5 percent year-over-year in 2022.
Despite declines in some key performance indicators, the average retail sale ended the year up 6 percent.
One can speculate about why—the rising price of diamonds, fluctuations in metal pricing, economic climate, inflation, etc.—but the average retail sale has continued its four-year upward trajectory.
Gross profit dollars in 2022 were down 2 percent, potentially a result of some creative pricing practices in the fourth quarter.
The positive results in 2022 did not play out evenly across all categories, however.
“While lab-grown loose [diamonds are] growing in market share, [they are] still a small percentage of the market when compared with natural loose diamond sales.” — Sherry Smith
For example, all loose diamonds had consistent declines through the fourth quarter with gross sales down 21 percent in October and November, and down 20 percent in December.
Only the strength of H1 sales kept overall declines at 6 percent for the full year.
The picture for natural diamonds versus lab-grown diamonds was vastly different.
Natural loose diamonds were up 1.3 percent in gross sales for 2022, while gross sales of lab-grown loose diamonds grew a robust 45 percent.
Both natural diamonds and lab-grown diamonds were down in units sold, 7 percent and 9 percent respectively.
It’s also important to note that while lab-grown loose is growing in market share, it still comprises a small percentage of the market when compared with natural loose diamond sales in the independent channel.
Semi-mounts were down 7 percent in gross sales for the year after a challenging fourth quarter. Gross sales in the category dropped 22 percent in October, 13 percent in November, and 15 percent in December.
Semi-mounts were also down 10 percent in total units sold, but up 4 percent in average retail sale when compared with 2021.
Complete diamond engagement rings experienced similar results, showing declines in gross sales in October (down 19 percent), November (down 19 percent), and December (down 16 percent).
For the full year, independent jewelers recorded a 9 percent drop in gross sales of complete diamond engagement rings and a 14 percent decline in units sold, but a 7 percent increase in average retail sale.
The watch category continued to do well in 2022, showing a 3 percent increase in gross sales and an 8 percent increase in average retail sale. Watches were only 0.5 percent down in units sold, with margins holding steady.
The colored stones and pearl categories were up 2 percent in gross sales, down 6 percent in units sold and up 9 percent in average retail sale when compared with 2021.
Gross sales of jewelry in the precious metals without stones category rose 3 percent in gross sales but fell 3 percent in units sold. The average retail sale was up 6 percent for the year.
Sterling silver and alternative metals declined 7 percent in gross sales and 12 percent in units sold; however, the average retail sale was up 6 percent.
Services were up in all key performance indicators—9 percent in gross sales, 1 percent in units sold, 9 percent in gross profit and 8 percent in average retail sale.
I have read numerous articles about what to expect in 2023 and two common themes stand out.
First, retailers should focus on customer retention and second, improve the customer experience. This makes so much sense when you look at the statistics.
Many companies state that 65-75 percent of their business comes from existing customers, with many sources reporting that repeat customers spend an average of 67 percent more than new customers.
According to a 2021 study on personalization, 60 percent of consumers are more likely to become repeat customers after a personalized shopping experience.
While we may need to work harder for the customers’ business in 2023, customers continue to demonstrate an appetite to buy, even as we’ve seen a small decrease in discretionary spending.
More on Columnists
The Latest
Events & AwardsJun 06, 2025
Here Are the 2025 Retailer Hall of Fame InducteesThis year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.
CollectionsJun 06, 2025
Piece of the Week: Harwell Godfrey’s ‘Granny Squares Eleanor’ Necklace As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.
Events & AwardsJun 05, 2025
The 12 Fresh Faces in Couture’s Design AtelierDiscover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry BusinessWhen investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.
SourcingJun 05, 2025
A Rare Suite of Rubies Has Arrived in Las VegasThe “Royal Ruby” Collection is a quintet of untreated rubies curated by collector Jack Abraham.
Weekly QuizJun 05, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsJun 05, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
MajorsJun 05, 2025
Platinum Guild International Updates Leadership TeamTwo existing executives have been given new roles.
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.
Events & AwardsJun 05, 2025
Zillion Announces 'Women in STEM' Scholarship RecipientMeredith Tiderington, an electrical engineering student, was selected for the award.
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown DiamondsIt will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 SessionsFrom design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.
CrimeJun 04, 2025
10 Safety Tips for the Las Vegas Shows The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.
MajorsJun 04, 2025
Amy Curran Promoted at Hill & Co.Her new role is director of strategic initiatives.
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into GoldThe designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.
FinancialsJun 03, 2025
Signet Jewelers Sees Turnaround in Q1 With Sales Ticking Up 2%On an earnings call, CEO J.K. Symancyk discussed what’s working for the company and how it’s preparing for the potential impact of tariffs.
SurveysJun 03, 2025
Consumer Confidence Improves in May The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand AmbassadorThe actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade ReportsThe company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."
SourcingJun 02, 2025
Gemfields’ June Auction to Include 36-Carat RubyThe large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.
GradingJun 02, 2025
GSI Opens New Lab in Thailand Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June Those born in June have a myriad of options for their birthstone jewelry.
SourcingJun 02, 2025
David Allouche Joins Grandview Klein DiamondsThe diamond industry veteran has been named its senior sales executive.
FinancialsMay 30, 2025
Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment The company plans to raise the prices of select watches to offset the impact of tariffs.
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable EnvironmentBetween tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ NecklaceDesigned by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.
Policies & IssuesMay 30, 2025
Trade Court Declares Trump’s Tariffs InvalidHowever, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.
CollectionsMay 29, 2025
Britney Spears Files Trademark for New Jewelry LineThe pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.
