ColumnistsApr 22, 2025
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Peter Smith: Leading Through Change
Communicating clearly with your staff is key to navigating turbulent times, writes columnist Peter Smith.
Peter Smith is an industry consultant and keynote speaker who teaches in-store sales psychology and hiring workshops. He is the author of "Hiring Squirrels," "Sell Something," and "The Sales Minute." Contact him at TheRetailSmiths@gmail.com, via LinkedIn, or at 617-308-1580.
Editor’s Note: This story first appeared in the print edition of the 2025 State of the Majors. Click here to see the full issue.
Author and business guru Patrick Lencioni wrote of leaders, “Their top two priorities are to set the direction of the organization and then to ensure that people are reminded of it on a regular basis.”
Lencioni’s message, sublime in its clarity, has never been more apt than in the jewelry industry right now.
The evolution of retail has resulted in a significant contraction of stores, even as the total jewelry and watch business was stronger than ever from 2020 through 2024.
The reduction in the number of stores is not exclusive to jewelry and watch retail.
Coresight Research reported that 7,325 stores closed in 2024, and it predicts that 15,000 or more will shutter in 2025.
For all the changes in retail, two significant developments are undeniable.
First, retail has morphed into a hybrid model, where physical retail serves as the backbone of multi-tiered commerce that includes online and social.
The second development is that this seems to be giving way to a bifurcation of the retail landscape; price-driven on one end, and experiential/quality retail on the other.
The price model is best represented by Walmart and Costco while the experiential/quality model is best seen at stores such as Wegmans, Bass Pro Shops, Apple, Ulta Beauty, and Lululemon.
Customers identify with one or the other of the two models, and that is punishing stores in the middle, giants like Sears, Kmart, Kohl’s, and JCPenney,, which are already gone or on life support.
While some jewelry retailers choose to compete on the lower end of the price spectrum, the disappearing middle (where retailers attempt to be all things to all people) is getting hammered.
It is becoming increasingly difficult to carve out a competitive niche in that space and the model itself may need a complete rethink.
Generally speaking, we are unlikely to see an increase in foot traffic again.
If you remove auto and gas sales from the numbers, about 20 percent of all retail sales come from online sources. When you combine that with the decline in the number of malls, and mall traffic, smart retailers will evolve their strategy to meet the rapidly changing landscape.
Related stories will be right here …
Author and business guru Patrick Lencioni wrote of leaders, “Their top two priorities are to set the direction of the organization and then to ensure that people are reminded of it on a regular basis.”
Lencioni’s message, sublime in its clarity, has never been more apt than in the jewelry industry right now.
The evolution of retail has resulted in a significant contraction of stores, even as the total jewelry and watch business was stronger than ever from 2020 through 2024.
The reduction in the number of stores is not exclusive to jewelry and watch retail.
Coresight Research reported that 7,325 stores closed in 2024, and it predicts that 15,000 or more will shutter in 2025.
For all the changes in retail, two significant developments are undeniable.
First, retail has morphed into a hybrid model, where physical retail serves as the backbone of multi-tiered commerce that includes online and social.
The second development is that this seems to be giving way to a bifurcation of the retail landscape; price-driven on one end, and experiential/quality retail on the other.
The price model is best represented by Walmart and Costco while the experiential/quality model is best seen at stores such as Wegmans, Bass Pro Shops, Apple, Ulta Beauty, and Lululemon.
Customers identify with one or the other of the two models, and that is punishing stores in the middle, giants like Sears, Kmart, Kohl’s, and JCPenney,, which are already gone or on life support.
While some jewelry retailers choose to compete on the lower end of the price spectrum, the disappearing middle (where retailers attempt to be all things to all people) is getting hammered.
It is becoming increasingly difficult to carve out a competitive niche in that space and the model itself may need a complete rethink.
Generally speaking, we are unlikely to see an increase in foot traffic again.
If you remove auto and gas sales from the numbers, about 20 percent of all retail sales come from online sources. When you combine that with the decline in the number of malls, and mall traffic, smart retailers will evolve their strategy to meet the rapidly changing landscape.
One of the cornerstones of this new reality must be initiatives designed to ensure a higher average ticket.
Lower price points can create the illusion of customer accessibility but won’t help a business if the retailer doesn’t find a way to drive more foot traffic and/or improve conversion rates.
To that end, all retailers must have a robust and active customer relationship management (CRM) system.
I’ve seen data showing returning customers are 70 percent more likely to buy than new customers with an average retail ticket that is 30 percent higher.
Once you’ve decided on your direction for CRM, lean into it at every touchpoint. It ought to become a litmus test for every dollar spent, and for every important decision made, or not made.
Hire for it, train for it, compensate for it, and be prepared to make difficult choices if people or initiatives don’t align with your vision.
Have the humility to accept you don’t have all the answers and get a coach outside of your organization to keep you sane while you drive your business forward.
Before you make tough choices, invite debate to make sure your path forward doesn’t have unintended, damaging consequences.
However, once you’ve made the decision to move forward, be like Cortés and burn your boats.
Whatever direction a leader chooses to chart for their business, demonstrating the leadership qualities to clearly articulate that vision, and the commitment and communication acumen to keep that message top of mind, is critical.
As you double down or reinvent your model, your people will always be better for hearing the truth and knowing where the business is headed. There is nothing worse than ambiguity to kill morale.
Make sure you have a short-term scorecard, but a map for where you are going in the long term.
Focus on the things that will make the biggest difference in your business and control the controllables. You can’t impact the stock market, the weather, or the number of Saturdays in December.
Management expert John Kotter often talked about building a coalition for change. By that he meant hiring the right people, creating a trusting environment, and developing a common goal.
That seems like a reasonable plan to me.
Happy retailing!
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