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
MajorsFeb 20, 2026
Jewelers Vigilance Committee Names Julie Yoakum Board ChairJVC also announced the election of five new board members.
CollectionsFeb 20, 2026
Boucheron’s ‘Faisceaux’ Brooch Heads to V&A MuseumThe brooch, our Piece of the Week, shows the chromatic spectrum through a holographic coating on rock crystal.
IndependentsFeb 19, 2026
Bailey’s Fine Jewelry Co-Founder ‘Mama Ann’ Bailey Dies at 100Raised in an orphanage, Bailey was 18 when she met her husband, Clyde. They opened their North Carolina jewelry store in 1948.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
IndependentsFeb 19, 2026
Material Good Opens Third Location Material Good is celebrating its 10th anniversary as it opens its new store in the Back Bay neighborhood of Boston.
Weekly QuizFeb 19, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsFeb 19, 2026
The Original Miami Beach Antique Show Returns in MarchThe show will be held March 26-30 at the Miami Beach Convention Center.
AuctionsFeb 18, 2026
Joanna Carson’s Jewels Head to AuctionThe estate of the model, philanthropist, and ex-wife of Johnny Carson has signed statement jewels up for sale at John Moran Auctioneers.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
PodcastsFeb 18, 2026
Episode 2: Jewelry Trends & Does the Red Carpet Matter?Are arm bands poised to make a comeback? Has red-carpet jewelry become boring? Find out on the second episode of the “My Next Question” podcast.
MajorsFeb 18, 2026
Select Jewelry Inks Agreement to Distribute Lightweight Gold JewelryIt will lead distribution in North America for Graziella Braccialini's new gold pieces, which it said are 50 percent lighter.
Policies & IssuesFeb 18, 2026
Community for Ethical Jewelry Looks for Executive DirectorThe organization is seeking a new executive director to lead it into its next phase of strategic growth and industry influence.
Events & AwardsFeb 18, 2026
DCA to Host Gemstone Selling Education Session at IJO EventThe nonprofit will present a live, two-hour introductory course on building confidence when selling colored gemstones.
TrendsFeb 17, 2026
A Bit of Jewelry for the Year of the HorseWestern wear continues to trend in the Year of the Fire Horse and along with it, horse and horseshoe motifs in jewelry.
SourcingFeb 17, 2026
Colored Gemstone Experts Talk Tariffs, Trends in TucsonAlthough the market is robust, tariffs and precious metal prices are impacting the industry, Stuart Robertson and Brecken Branstrator said.
GradingFeb 17, 2026
Dr. George Rossman, Former GIA Governor, Dies at 81Rossman, who advised GIA for more than 50 years, is remembered for his passion and dedication to the field of gemology.
CrimeFeb 13, 2026
JSA Offering $10K Reward in Nancy Guthrie Case Guthrie, the mother of “Today” show host Savannah Guthrie, was abducted just as the Tucson gem shows were starting.
IndependentsFeb 13, 2026
97-Year-Old New Mexico Jewelry Store To CloseButterfield Jewelers in Albuquerque, New Mexico, is preparing to close as members of the Butterfield family head into retirement.
CollectionsFeb 13, 2026
A ‘Rosebud’ Necklace for Valentine’s DayPaul Morelli’s “Rosebud” necklace, our Piece of the Week, uses 18-karat rose, green, and white gold to turn the symbol of love into jewelry.
MajorsFeb 13, 2026
JFC Announces New BeneficiariesThe nonprofit has welcomed four new grantees for 2026.
MajorsFeb 12, 2026
These 8 Saks Fifth Avenue Stores Are ClosingParent company Saks Global is also closing nearly all Saks Off 5th locations, a Neiman Marcus store, and 14 personal styling suites.
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of AragonIt is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.
SourcingFeb 12, 2026
‘Cotton Candy’ Necklace, 35-Carat Kunzite Win 2025 ‘Buyer’s Choice’ AwardsThe AGTA Spectrum and Cutting Edge “Buyer’s Choice” award winners were announced at the Spectrum Awards Gala last week.
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused AwardThe “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set StunnerSourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy AgainThe clothing and accessories chain announced last month it would be closing all of its stores.
CollectionsFeb 11, 2026
Zales Turns Sweethearts Into Jewelry for Valentine’s Day CollectionThe “Zales x Sweethearts” collection features three mystery heart charms engraved with classic sayings seen on the Valentine’s Day candies.
TechnologyFeb 11, 2026
Gemvision Symposium 2026 Slated for AprilThe event will include panel discussions, hands-on demonstrations of new digital manufacturing tools, and a jewelry design contest.
