WatchesApr 16, 2026
Cartier Brings Back the RoadsterThe “watchmaker of shapes” debuted the reworked version of the vintage sports car-inspired timepiece at Watches & Wonders.
IndependentsMar 31, 2020
On Data: The Questions You Need to Ask About CARES
In another special edition of On Data, Sherry Smith says jewelers need to consult their team of experts about the Coronavirus Aid, Relief and Economic Security Act.
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
The first confirmed coronavirus case in the United States was reported on March 5.
Although we are less than 30 days into this pandemic in the U.S., the numbers are staggering—more than 120,000 confirmed cases and over 2,000 deaths as of Monday, the World Health Organization reports.
We now lead the world in total number of cases.
We’ve never been here before, battling a nationwide pandemic and facing so much uncertainty.
We know we will come out of this; we just aren’t sure when or what that might look like, as many of us will be adjusting to a new normal.
In the meantime, though, it is critical—and I know you’ve heard me say this before and I make no apologies for saying it again—but we must focus on what we can control.
So in this column, I’d like to address the multiple stimulus packages and relief programs available to all of us as it relates to our employees.
RELATED CONTENT: 5 Things Retailers Should Know About the Stimulus Bill
Last week, Congress passed a third stimulus package, which has allocated an additional $350 billion to small businesses and $150 billion for state and local stimulus finds. There are also provisions in the bill that will temporarily allow small businesses to claim deductions using today’s losses against past profits to claim quick refunds for cash infusions.
RELATED CONTENT: 5 Things Retailers Should Know About the Stimulus Bill
Last week, Congress passed a third stimulus package, which has allocated an additional $350 billion to small businesses and $150 billion for state and local stimulus finds. There are also provisions in the bill that will temporarily allow small businesses to claim deductions using today’s losses against past profits to claim quick refunds for cash infusions.
There’s no doubt that it can be overwhelming trying to understand and decode all the information relevant to your business in the $2 trillion stimulus package, otherwise known as the CARES (Coronavirus Aid, Relief and Economic Security) Act.
Therefore, you must rely on your corporate attorney, certified public account and, if you utilize one, your payroll company.
Remember their roles require a complete understanding of the legalities and the nuances associated with all the stimulus packages. This is precisely what you pay them for.
In fact, it’s so easy to misinterpret and/or misunderstand how some of these programs will work that I urge you to avoid taking any action until you have spoken to your experts.
You simply can’t afford costly missteps.
Start by assessing your current financial situation. What does that look like?
Define your objective, which now for many of our retailers is about sustainability. What does that look like? Am I able to be self-reliant, or do I need assistance? Perhaps it’s a combination of both, depending on
how long little to no revenue will be coming in.
Then set aside 15 to 30 minutes to create a list of questions for your team of experts.
It’s important to understand all your options when it comes to your employees and the potential legal ramifications.
A sample list of questions might look like this.
1) Am I obligated to give my employees paid leave?
1a) Does this apply to all businesses, or are small businesses exempt?
2) If I offer paid leave to my current employees, will I be fully reimbursed?
3) Is it smart to take out a loan, given the low interest rates, in order to keep my employees on paid leave?
4) What advantages and disadvantages are there between paid leave versus layoffs?
5) If I am reimbursed, how quickly will those funds come through?
6) What form will the reimbursement take, cash or tax credits?
7) If part of the reimbursement is via tax credits, when would those be realized?
8) If I lay off my employees, am I obligated to pay them their PTO (personal time off) time first?
9) If I take out a loan to use for payroll expenses, is loan forgiveness a guarantee?
10) If not, what options do I have?
11) Is there anything I have overlooked?
1a) Does this apply to all businesses, or are small businesses exempt?
2) If I offer paid leave to my current employees, will I be fully reimbursed?
3) Is it smart to take out a loan, given the low interest rates, in order to keep my employees on paid leave?
4) What advantages and disadvantages are there between paid leave versus layoffs?
5) If I am reimbursed, how quickly will those funds come through?
6) What form will the reimbursement take, cash or tax credits?
7) If part of the reimbursement is via tax credits, when would those be realized?
8) If I lay off my employees, am I obligated to pay them their PTO (personal time off) time first?
9) If I take out a loan to use for payroll expenses, is loan forgiveness a guarantee?
10) If not, what options do I have?
11) Is there anything I have overlooked?
Let me give an example of why it’s so important to do this exercise.
This excerpt is from a CNBC article published last Thursday and, yes, quickly updated the next day.
“Under the CARES Act, the loans can be for as much as 2.5 times payroll or $10 million, whichever is less. Payments can be deferred by up to a year, and businesses will be able to apply for forgiveness of the loan (or a portion of it) based on the amount used during the eight weeks following loan approval. Any amount not forgiven would have a maximum interest rate of 4 percent.”
I want to use this example because I’ve had many retailers debate keeping their employees on paid leave vs. unpaid leave because some are convinced they will be fully reimbursed.
Well, that’s simply not guaranteed. Look at the language above. While your payments could be deferred for up to a year, which would be very helpful, you will still have to apply for a forgiveness of the loan.
And, all or part of it may be forgiven, while the unforgiven portion would have a maximum interest rate of 4 percent.
One can easily see how this one paragraph could be subject to multiple interpretations.
The potential costly part to the retailer is that many of them would have to take a loan in order to grant paid leave. That’s a loan that might not be fully forgiven, which means you’ve taken on additional debt that you’ll have to pay back.
There is another article, also published last Thursday, from The New York Times that states payroll expenses would be fully covered, but there is a timeline in which you have to use those funds.
The bottom line is: There simply is no one right answer for all retailers, which is why you want to consider all the facts and ultimately make the decision that is in the best interest of your business.
Given how rapidly things are changing, you can understand why it’s imperative to rely on your team of experts. Utilize them! They will ensure you understand the impact of your chosen course of action.
At the end of the day, we all want to be standing on the other side of this pandemic.
Be well and stay healthy!
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. In her role, Smith works with wholesalers, brands and retail stores on business mentoring, and data analysis and aggregation. She can be reached at sherry@edgeretailacademy.com.
More on Independents
The Latest
MajorsApr 16, 2026
Stuller’s Latest Mountings Catalog Is Out NowThe “Mountings 2026-2027” catalog showcases Stuller’s largest and most diverse assortment to date with more than 400 new mounting styles.
CrimeApr 16, 2026
FBI Issues Warning to Refineries, Retailers Due to High Price of GoldThe alert states that burglary crews are targeting jewelry businesses and details how jewelers and refineries can protect themselves.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
PodcastsApr 15, 2026
Episode 4: The Natural Diamond DilemmaSally Morrison and Mark Klein discuss De Beers’ first beacon in 16 years and the mistake the industry made with lab-grown diamonds.
Weekly QuizApr 16, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsApr 15, 2026
Spark Creations’ Randy McKenzie Dies at 72 McKenzie spent 45 years with Spark Creations and is remembered for being kind, dedicated, and hardworking.
WatchesApr 15, 2026
These Are the New Rolex Watches for 2026Rolex focused exclusively on the Oyster Perpetual this year, as the model is celebrating its 100th anniversary.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
FinancialsApr 15, 2026
Kering’s Jewelry Shines in Q1, Gucci’s Struggle ContinuesThe luxury giant discussed the Middle East conflict and its transformation plans, hinting at a stronger jewelry presence in North America.
SourcingApr 15, 2026
Diamond Club West Coast Names 2026 BoardKalpesh Jhaveri was re-elected as president for a third year.
TechnologyApr 15, 2026
This Jewelry Brand’s Video Series Is Up for a Webby Award“Diamond Divas,” a social media reality series by Shahla Karimi Jewelry, is nominated in the “Best Social: Fashion & Beauty” category.
SourcingApr 14, 2026
De Beers Expands ‘Desert Diamonds’ Beacon Into BridalThe campaign seeks to reignite desire for natural diamond engagement rings by highlighting the “distinct character” of warm-toned diamonds.
FinancialsApr 14, 2026
LVMH’s Q1 Sales Sink 6% Amid Middle East ConflictPlus, how Saks Global’s bankruptcy affected the luxury giant’s first quarter.
SourcingApr 14, 2026
International Jade Summit to Return to MontereyPresented by Mason-Kay Jade, the summit, in its second year, will again be held during the Monterey Bay Jade Festival.
Events & AwardsApr 14, 2026
CBG Releases Details for Las Vegas ShowThe group has announced its lineup of speakers and a new “Rising Stars” pavilion.
CollectionsApr 13, 2026
Uniform Object’s New Jewelry Collection Centers on the ‘Carbon Form’The “Carbon Form” collection explores the contrast between high and low materials, using rubber cord alongside 18-karat gold and gemstones.
Events & AwardsApr 13, 2026
JA Accepting 2026 Impact Initiative ApplicationsThe program provides essential funding to organizations for projects that enhance the jewelry industry.
Events & AwardsApr 13, 2026
Couture Announces New Show in MiamiThe jewelry trade show is launching its first open-to-the-public event in Coconut Grove this November.
CrimeApr 13, 2026
JSA Offers Reward in Oregon Jewelry Store Armed RobberyJSA is seeking information about the gunpoint robbery of a Kay Jewelers location in Oregon’s Washington Square Mall.
WatchesApr 10, 2026
These Watches Have Increased in Value the Most Since 2018, Says Chrono24The top-performing watch models may be surprising, with Rolex and several popular pandemic-era picks notably absent from the top 20.
CollectionsApr 10, 2026
Ophelia Eve’s Toggle Pendant Holds Your SecretsThe “Scroll” toggle pendant, our Piece of the Week, opens to reveal a hidden message, mantra, or love letter written on washi paper.
ColumnistsApr 09, 2026
Jewelry Demand Isn’t Stronger, Prices Are Just Higher Jewelers who misinterpret the state of the jewelry market risk employing the wrong retail strategy, cautions columnist Sherry Smith.
MajorsApr 09, 2026
Tiffany & Co. Promotes Nathalie Verdeille to SVP, Chief Artistic OfficerIn her newly expanded role, she will continue to oversee the jewelry category, as well as watches, home, and accessories.
WatchesApr 09, 2026
Jacob & Co. Rolls Out Its Sequel to ‘The Godfather’ Musical Watch“The Godfather II” watch plays two melodies from the mob film’s score, “The Godfather’s Waltz” and “The Godfather Love Theme.”
Events & AwardsApr 09, 2026
JCK Announces Jesse Itzler as 2026 Keynote SpeakerOrganizers have also introduced the new JCK Talks Signature Series, as well as an offering of watch-focused workshops and lectures.
SourcingApr 09, 2026
AGA To Honor ‘Quiet Leadership’ With New AwardThe Alan Hodgkinson Medal recognizes gemologists who are consistently generous with their time and expertise.
WatchesApr 09, 2026
Oris Names New CEO, CFOThe Swiss watchmaker is changing up its executive leadership team as part of a restructuring.
