MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers DownsizesRocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.
EditorsAug 14, 2009
Cost of Doing Business dissected
This week, Jewelers of America (JA) released the results of its annual industry benchmarking survey, the “Cost of Doing Business.” We received the results mid-day on Tuesday and posted a story immediately. To be honest, I'm a little surprised at...
This week, Jewelers of America (JA) released the results of its annual industry benchmarking survey, the “Cost of Doing Business.”
We received the results mid-day on Tuesday and posted a story immediately.
To be honest, I'm a little surprised at how little interest the survey story has generated on our Web site.
It was neither one of the “Most Popular” or “Most E-mailed” stories and, if it made an appearance on either of those lists since being posted on Tuesday, it was a brief one.
In times like this, I thought retailers would have been clicking in droves to have a look at the results and see where their jewelry stores stand.
I was wrong; looks like the Cost of Doing Business just can't compete with Heidi Klum.
In any case, the survey found a median sales decrease of 3.5 percent.
Breaking it down by store type, sales for chain stores fell 13.2 percent, followed by independent mid-range stores (5.5 percent), independent high-end stores (1.3 percent), and designer/artist/custom shops (0.8 percent).
JA pointed out that the 3.5 percent drop marked the first time sales “declined materially” in the survey’s 18-year history.
But a 3.5 percent drop doesn’t seem to jive with what we see happening around us in the jewelry industry today, does it?
A 35 percent drop seems more fitting.
And, based on the remarks posted in the online Comments box accompanying the story (which, oddly enough, turned into a mini-forum for a debate on healthcare...I guess any platform will do for a debate on that issue these days), some of our readers seem to agree.
So what could have caused such relatively sunny results?
I turned to JA for some answers.
As Lauren Thompson with JA so kindly explained, there are a couple of reasons the figures in the report might not be an exact reflection of industry averages.
To begin with, the report focuses on the median for each jewelry category.
The median is a mid-point for a data set, with one-half of the firms reporting figures above it and one-half below it - and is NOT an average.
The median is used, she tells me, because when taking a sample, as JA does for this report, there are wide swings in data and that can throw off an average.
Lauren also noted that while 687 stores took the survey this year, up from 384 last year, it is still just a sampling of the industry as a whole, intended to
be used as a benchmarking tool, not just a data reference point for the industry.
It’s also worth mentioning that the numbers included in the report are pretty close to the data provided by the Department of Commerce’s Bureau of Economic Analysis regarding jewelry and watch sales, as documented here by industry analyst Ken Gasssman.
One last thought that occurred to me when reading through the e-mail from JA: those figures are for all of 2008, eight months of which were spent in pre-recessionary state.
I know jewelry sales weren’t exactly stellar for the first eight months of 2008, but I think everybody can agree that it wasn’t until September that the economy really took a nosedive.
Still want to read more about the Cost of Doing Business?
Look for an in-depth analysis on the survey in upcoming issue of National Jeweler.
It’s also worth mentioning that the numbers included in the report are pretty close to the data provided by the Department of Commerce’s Bureau of Economic Analysis regarding jewelry and watch sales, as documented here by industry analyst Ken Gasssman.
One last thought that occurred to me when reading through the e-mail from JA: those figures are for all of 2008, eight months of which were spent in pre-recessionary state.
I know jewelry sales weren’t exactly stellar for the first eight months of 2008, but I think everybody can agree that it wasn’t until September that the economy really took a nosedive.
Still want to read more about the Cost of Doing Business?
Look for an in-depth analysis on the survey in upcoming issue of National Jeweler.
More on Editors
The Latest
IndependentsJun 26, 2025
Penny Ruston Dies at 80 The creator of the WJA Chicago chapter is remembered as a champion for women in the jewelry industry and a loving grandmother.
SurveysJun 26, 2025
After Recovering in May, Consumer Confidence Dips in June The decline was consistent across age groups and almost all income groups, with tariffs and inflation still top of mind.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
CollectionsJun 26, 2025
Jam Out With Sorellina’s Jimi Hendrix-Inspired JewelsThe “Playlist: Electric Dreams” collection brings lyrics from the musician’s song, “Little Wing,” to life through fine jewelry.
Weekly QuizJun 20, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsJun 26, 2025
The Jewelry Symposium Is Looking for Speakers for 2026 EventThe event is set for May 16-19 in Detroit, Michigan.
IndependentsJun 25, 2025
Marissa Collections Opens in Nantucket as Legal Fight ContinuesThe Vault’s Katherine Jetter is accusing the retailer of using info she shared for a potential partnership to move into Nantucket.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
CrimeJun 25, 2025
Customs Nabs Another Big Shipment of Fake Cartier, Van Cleef JewelryAgents seized 2,193 pieces, a mix of counterfeit Cartier “Love” and “Juste Un Clou” bracelets, and Van Cleef & Arpels’ “Alhambra” design.
CollectionsJun 25, 2025
Splash into Karina Choudhrie’s Collection of Underwater Circus PerformersThe designer brought her children’s book, “The Big Splash Circus,” to life through a collection of playful fine jewelry characters.
Events & AwardsJun 25, 2025
JA Announces Impact Initiative Fund RecipientsThe trade association has chosen the recipients of the funding initiative it formed to foster the growth and sustainability of the industry.
SourcingJun 25, 2025
2025 AGTA Spectrum Awards Open for EntriesThe organization has also announced this year’s slate of judges.
IndependentsJun 24, 2025
Colorado Bench Jeweler Celebrates 50 Years With Local RetailerLori Tucker started at Williams Jewelers when she was 18 years old.
WatchesJun 24, 2025
Citizen’s New ‘Fantastic Four’ Watch Is Literally Super The “Marvel | Citizen Zenshin” watch is crafted in Super Titanium and has subtle nods to all four “Fantastic Four” superheroes on the dial.
MajorsJun 24, 2025
Tacori, QVC to Launch Exclusive Lab-Grown Diamond Jewelry CollectionThe “XO Tacori” collection was designed to blend luxury and accessible pricing.
GradingJun 23, 2025
GIA Names New President and CEO Pritesh Patel, the lab’s chief operating officer, will take over as president and CEO of GIA.
Recorded WebinarsJun 23, 2025
Watch: Top Trends at Couture, JCK Las Vegas 2025National Jeweler and Jewelers of America discuss the standout jewelry trends and biggest news to emerge from the shows this year.
SourcingJun 23, 2025
Diamond Producers, Organizations to Kick in Money to Promote Natural DiamondsSignatories to the “Luanda Accord” committed to allocating 1 percent of annual diamond revenue to the Natural Diamond Council.
Events & AwardsJun 23, 2025
Jose Hess Design Awards Celebrate 6 Jewelry DesignersThe winning designs captured the “Radiance” theme.
Events & AwardsJun 23, 2025
Gem Awards Now Accepting Nominations for 2026Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.
TrendsJun 20, 2025
Dua Lipa Stays On-Trend With Chunky Engagement RingThe singer’s ring ticks off many bridal trends, with a thick band, half-bezel setting, and solitaire diamond.
TrendsJun 20, 2025
Piece of the Week: Yvonne Léon’s ‘Python Gold’ BraceletThe bracelet references vintage high jewelry and snake symbolism as a playful piece where a python’s head becomes a working belt buckle.
CrimeJun 18, 2025
7 Men Indicted in $100M Brinks Jewelry HeistThe heist happened in Lebec, California, in 2022 when a Brinks truck was transporting goods from one show in California to another.
AuctionsJun 18, 2025
Historic ‘Marie-Thérèse Pink’ Diamond Fetches $14M at Christie’sThe 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week.
AuctionsJun 18, 2025
16th-Century ‘Gresham Grasshopper’ Ring Sells for $56KThe historic signet ring exceeded its estimate at Noonans Mayfair’s jewelry auction this week.
CollectionsJun 18, 2025
Kirk Kara Celebrates 135 Years With New JewelsTo mark the milestone, the brand is introducing new non-bridal fine jewelry designs for the first time in two decades.
SourcingJun 18, 2025
Gemfields Sells 36-Carat Rough RubyThe gemstone is the third most valuable ruby to come out of the Montepuez mine, Gemfields said.
