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, 2023
Meet the 2023 Couture Design Award WinnersThe jewelry trade show awarded brands and individuals across 14 categories.
Policies & IssuesJun 06, 2023
Grandview Klein Diamonds, Local Partners Donate to Primary SchoolThe donation to a school in Namibia included computer equipment, infrastructure repair and sanitary wear.
Events & AwardsJun 05, 2023
HardRock Summit Organizers Gear Up for Third Annual ShowMore than 250 gem, jewelry, and mineral companies are expected to exhibit, including the American Gem Trade Association.
Brought to you by
The Next Step for GIA Diamond ReportsThe most trusted diamond report, available in print or the GIA App.
TrendsJun 02, 2023
Take a Peek at Couture’s Newest Design Talents This year’s Design Atelier is full of gems.
Weekly QuizJun 02, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
CollectionsJun 02, 2023
Piece of the Week: Saboo Fine Jewels’ Emerald EarringsThey’re a testament to the power of excellent design.
IndependentsJun 02, 2023
These Are the 2023 Retailer Hall of Fame InducteesThis year’s honorees include one of Florida’s largest independent jewelers and two multi-store independents in the Chicago and New York areas.
Brought to you by
Beyond Borders: Crucial Factors in Colored Stone Origin DeterminationNavigate origin determination with Continuing Education seminars offered by the GIA Alumni Collective™.
TrendsJun 01, 2023
See 50+ Jewels Debuting at Couture in Las VegasThe industry’s most influential contemporary designers are showcasing their latest jewelry designs.
Lab-GrownJun 01, 2023
35-Carat Lab-Grown Diamond Going on Display in VegasCreated by Maitri Lab-Grown Diamonds and graded by IGI, it’s slightly bigger than the record-setting lab-grown diamond GIA just examined.
MajorsJun 01, 2023
Bottom Line Marketing Announces Restructured Leadership, New Service OfferingsThe marketing agency has integrated its first C-suite.
Events & AwardsJun 01, 2023
Meet JCK’s 2023 Keynote SpeakerThe jewelry trade show also will debut educational content centered around social media.
TrendsMay 31, 2023
Here’s a Sneak Peek of New Jewelry to Check Out at JCKLuxury kicks off today, with the full show in swing on Friday.
CollectionsMay 31, 2023
Verragio’s Debut Fine Jewelry Collections Honor Company HeritageOne of the three new collections was inspired by the legend of a woman who traded her mansion to Cartier for two strands of natural pearls.
MajorsMay 31, 2023
Signet Jewelers Names New Head of Investor RelationsRob Ballew will be tasked with communicating the jewelry giant’s plans and financial performance to investors.
MajorsMay 31, 2023
Jewelers Mutual Launches App for Retailers, Introduces New BrokerageWith the app, customers receive a 15-day insurance offer on new purchases while their coverage needs are being evaluated.
Lab-GrownMay 30, 2023
Lightbox Is Testing Out a Trendy Concept Shop in BrooklynIt is in House of Showfields, a bazaar-style retail space in the borough’s Williamsburg neighborhood.
Events & AwardsMay 30, 2023
These Are the Can’t-Miss JCK Talks Education SessionsFrom consumer trends to retail technology, these are the JCK Talks sessions that should be on attendees’ radar.
AuctionsMay 30, 2023
Sotheby’s to Auction Mellon Family JewelrySignature pieces from Cartier and David Webb will appear in the June jewelry auction.
Events & AwardsMay 30, 2023
24 Karat Club of Southern California Recognizes 3 HonoreesThey will be celebrated at the annual dinner dance and gala in the fall.
GradingMay 26, 2023
State of the Diamond Industry: AI and the Future of Diamond GradingGemologists have long used machines in diamond grading but technology has made it possible for them to “learn” how to do it on their own.
Recorded WebinarsMay 26, 2023
Watch: Diamond Cut Quality: The Final Frontier Part 2Supplier Spotlight Sponsored by IGI
Recorded WebinarsMay 26, 2023
Natural and Lab-Grown Diamonds: What It’s Like to Sell Both Watch retailers Jeffery Bolling and Bobby Bengivengo discuss employee training, customer education and the sticky subject of future value.
FinancialsMay 26, 2023
Movado Sales Slip in Q1 Amid Inflation Woes, Tough CompsThe company has plans to revamp the Movado brand and offer less expensive watches this year.
AuctionsMay 26, 2023
Piece of the Week: A Bulgari Sapphire and Diamond NecklaceSet with a 118-carat unheated Sri Lankan sapphire, it just sold for $3.4 million at Phillips jewelry auction in Hong Kong.
Supplier BulletinMay 25, 2023
RAE Fine Jewelry Collection Debuting at JCK Luxury 2023Sponsored by Noam Carver
TechnologyMay 25, 2023
State of Retail: Why Jewelers Need to Invest in Cybersecurity NowAs cybercrime incidents threaten the industry, jewelers need to know what they’re up against and the best ways to protect their businesses.
