ColumnistsMar 12, 2024
The PR Adviser: Closing Sales and Following UpColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire Brands
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com.
Brands have been in the news of late, with Watches of Switzerland’s acquisition of the U.S. arm of Roberto Coin, and Richemont buying Italian jewelry brand Vhernier.
This follows earlier news that De Beers Group will dissolve Forevermark in the United States and other markets and relaunch it as a diamond jewelry brand in India.
And, of course, we had last year’s announcement that Rolex is acquiring Bucherer.
These developments got me thinking about a related question, and that is, why do retailers struggle to fire brands when they no longer perform for them?
You might think such decisions would always be as simple, as the numbers are either working or they’re not.
If the sales and profitability are good for business, you keep the brand. If the metrics don’t work, you fire the brand.
How complicated is that? As it turns out, it’s pretty complicated.
In the face of declining sales, reduced margins, and unhealthy inventories, retailers continue to forge ahead with brands that once were important to them but have long since ceased to enjoy favored-partner status.
They don’t like the brand enough to cheerlead for it internally or externally but still remain indifferent enough to continue to defer on separation decisions.
Psychologists have several explanations for why this happens, but the two that stand out for me are the status quo bias, and the sunk-cost fallacy.
In the first instance, the status quo bias, we know we should make a change, but the headaches associated with doing so far outweigh the benefits of pulling the plug.
In “A New Way To Think: Your Guide to Superior Management Effectiveness,” Roger Martin wrote, “In short, research into the workings of the human brain suggests that the mind loves automaticity more than just about anything else—certainly more than engaging in conscious consideration. Given a choice, it would like to do the same thing again and again.”
There is a tendency to rationalize the status quo bias as being related to habitual loyalty; we do it because we’ve always done it, it’s easy. The reality, of course, is that it is more aptly related to inertia.
We don’t want to change because doing so means a ton of work, and we’re not looking to take on more work.
Related stories will be right here …
This follows earlier news that De Beers Group will dissolve Forevermark in the United States and other markets and relaunch it as a diamond jewelry brand in India.
And, of course, we had last year’s announcement that Rolex is acquiring Bucherer.
These developments got me thinking about a related question, and that is, why do retailers struggle to fire brands when they no longer perform for them?
You might think such decisions would always be as simple, as the numbers are either working or they’re not.
If the sales and profitability are good for business, you keep the brand. If the metrics don’t work, you fire the brand.
How complicated is that? As it turns out, it’s pretty complicated.
In the face of declining sales, reduced margins, and unhealthy inventories, retailers continue to forge ahead with brands that once were important to them but have long since ceased to enjoy favored-partner status.
They don’t like the brand enough to cheerlead for it internally or externally but still remain indifferent enough to continue to defer on separation decisions.
Psychologists have several explanations for why this happens, but the two that stand out for me are the status quo bias, and the sunk-cost fallacy.
In the first instance, the status quo bias, we know we should make a change, but the headaches associated with doing so far outweigh the benefits of pulling the plug.
In “A New Way To Think: Your Guide to Superior Management Effectiveness,” Roger Martin wrote, “In short, research into the workings of the human brain suggests that the mind loves automaticity more than just about anything else—certainly more than engaging in conscious consideration. Given a choice, it would like to do the same thing again and again.”
There is a tendency to rationalize the status quo bias as being related to habitual loyalty; we do it because we’ve always done it, it’s easy. The reality, of course, is that it is more aptly related to inertia.
We don’t want to change because doing so means a ton of work, and we’re not looking to take on more work.
As for the principle of sunk-cost fallacy, that’s a very real thing and a powerful impediment to change.
We justify the years we’ve spent, the money we’ve invested in inventory, training, marketing, and even shop-in-shops.
We worry our team will struggle with change, when, in fact, they’re often well ahead of the principles of the business, as they’ve lived it on the front lines and have seen the decline in interest and/or effectiveness of the brand.
We also worry that customers we’ve sold a given brand to over the years will regret having purchased the brand from you if you choose to discard the line. Will they feel betrayed and take their business elsewhere?
Every restaurant that ever closed its doors has disappointed some diners. Every store that has ever closed had some fans. And every brand that was important at one time has customers who are collectors and repeat buyers.
The problem is, in all cases, there just weren’t enough of them. Things change and people move on. They are rarely as distraught as your worst fears may conjure.
In fact, one of the paradoxes of consumer behavior is that while it is commonly accepted that shoppers love automaticity, and automaticity often comes from brand consistency, we are also apt to seek out change.
In “Using Behavioral Science in Marketing: Drive Customer Action and Loyalty by Prompting Instinctive Responses,” Nancy Harhut wrote, “People are hardwired to notice things that are different from what surrounds them.”
It’s one of the reasons many retailers love to go to trade shows, to experience what’s new, and it is one of the reasons I believe quality physical retail stores will always be relevant.
Customers love the sense of excitement and discovery often delivered in the best retail environments.
As for those brands you need to address, my advice is, if you can’t bring yourself to completely sever ties, recalibrate your investment to align with the brand’s relevance to your business today, not what it used to be.
That means adjusting your inventory, your case space, and your training and marketing spend.
Block out the noise, including the noise inside your head, and do what’s right for your business.
Happy retailing!
More on Columnists
The Latest
MajorsApr 01, 2026
Foundrae Sues Pandora for Allegedly Copying Its Medallion DesignsFoundrae also accused the jewelry giant of copying its mood board style of marketing.
AuctionsApr 01, 2026
John Jacob Astor IV’s Titanic Pocket Watch Heads to AuctionA Patek Philippe for Tiffany & Co. timepiece owned by the American businessman who died on the Titanic will be offered at Freeman's Chicago.
SurveysApr 01, 2026
Consumers’ Outlook Improves Again in MarchThe Conference Board’s Consumer Confidence Index edged up, with optimism about the present outweighing worries about the future.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
IndependentsApr 01, 2026
Zachary’s Jewelers’ Constance Polamalu to Release Children’s BookThe retailer’s Zach Bear gift comes to life in “Zach Bear and the Window Necklace,” which centers on curiosity, bravery, and helping.
Weekly QuizMar 26, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsApr 01, 2026
AGA Opens 2026 Gemological Scholarship, Research Grant ApplicationsApplications are open for the AGA Gemological Scholarship Program through May 15, and until June 2027 for the Gemological Research Grant.
CollectionsMar 31, 2026
Mejuri Adds Silver to ‘Puzzle’ CollectionMejuri’s popular collection of 18-karat yellow gold vermeil rings debuted in sterling silver alongside new “Puzzle” slider charms.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
CollectionsMar 31, 2026
Buddha Mama, Ashley Longshore to Host Pop-Up in DallasThe Miami-based jewelry brand and the NYC-based artist will be in Dallas from April 9-11.
SourcingMar 31, 2026
NDC Designates April 8 as 'World Diamond Day'The initiative invites those in the industry to share stories on social media highlighting the meaning and impact of natural diamonds.
SourcingMar 31, 2026
GIA VP Jillian Wolk to Take Over at Tracr Wolk’s first day on the job as CEO of Tracr, De Beers Group’s blockchain platform, will be May 1.
EditorsMar 30, 2026
Tom Moses Looks Back on His Decades at GIA Moses, who will leave the lab in May after nearly 50 years, discusses his start in the business, gemstones that stand out, and what’s next.
TrendsMar 30, 2026
Oscar Heyman Debuts First Spring CatalogThe new catalog, which showcases 35 one-of-a-kind pieces of jewelry, is a compliment to the company’s popular holiday catalog.
SourcingMar 30, 2026
Rio Tinto Hauls Last Load from DiavikProduction has ceased at the Canadian diamond mine, which has yielded more than 150 million carats of rough diamonds in its 23-year run.
MajorsMar 30, 2026
Tanishq Opens First New England LocationThe store opening marks the 10th United States location for the India-based jewelry retailer.
MajorsMar 27, 2026
Saks Global Has Changed Its Mind About Closing These 3 StoresTwo Saks Fifth Avenue locations, one in Florida and one in California, and one Neiman Marcus store are off the chopping block.
IndependentsMar 27, 2026
Jimmy West, Longtime LJG Executive Director, Dies at 72West, who started in the art department at the Leading Jewelers Guild in 1979, is remembered for his patience, kindness, and dedication.
CollectionsMar 27, 2026
Itä’s ‘Yarí Whirl’ Ring Tells Every Side of the StoryIn the “Tesoro” version of the ring, our Piece of the Week, each side of the gold hexagonal nugget has a unique colored gemstone design.
WatchesMar 26, 2026
Q&A: Citizen Watch America President Jeffrey Cohen on Eco-Drive’s 50th AnniversaryCohen discusses the evolution of Citizen’s light-powered technology, the brand’s cross-generational appeal, and tariffs.
IndependentsMar 26, 2026
Peter Smith Pens Book on Human Behavior in Sales“Essentially Human: On Sales and Salespeople" reveals the underlying human traits and behaviors of the most successful sales professionals.
CollectionsMar 26, 2026
Lionheart Celebrates 13 Years of ‘Cassandane’The collection features symbols of love, luck, and light, based on the story of Queen Cassandane and Cyrus the Great of Persia.
Events & AwardsMar 26, 2026
NAJA, Instappraise Introduce New ScholarshipIt’s the third scholarship to be launched as part of the partnership to help appraisers advance their professional credentials.
Events & AwardsMar 26, 2026
JA Still Accepting Entries for 2026 CASE AwardsThe deadline for entries in the jewelry design competition has been extended to April 3.
SourcingMar 25, 2026
Rob Bates Steps Down as JCK News Director After 28 years with JCK, the veteran industry journalist is launching his own publication on Substack called The Jewelry Wire.
GradingMar 25, 2026
New York’s Natural History Museum, Wiley To Build Minerals DatabaseWiley said the project will give scientists worldwide access to the American Museum of Natural’s History renowned mineral collection.
CollectionsMar 25, 2026
Boochier Turns Flower Friendship Bracelets Into Fine JewelryThe “Flower Puff” collection looks to beaded flower friendship bracelets from childhood, turning the silhouette into nostalgic fine jewelry.
Policies & IssuesMar 25, 2026
Community for Ethical Jewelry to Host Bench Jeweler Shortage WebinarSet for April 2, the webinar will discuss how the jewelry industry can address the workforce gap.
