Surveys

Pace of Store Closures Slowed in Q1, JBT Data Shows

SurveysApr 25, 2017

Pace of Store Closures Slowed in Q1, JBT Data Shows

A total of 229 jewelry stores shut down in North America in the first quarter 2017, compared with 268 in the first quarter of last year.

Warwick, R.I.--Jewelry stores are continuing to close though the pace has abated from the frenetic shuttering of doors recorded in 2016, the latest data from the Jewelers Board of Trade shows.

The JBT’s latest statistics show that in North America (the United States and Canada), a total of 292 jewelry retailers, wholesalers and manufacturers ceased operations in the first quarter 2017, down 17 percent from 353 in the first quarter 2016.

This includes 229 jewelers shutting down their stores, a 15 percent decline when compared with the same period last year.

Isolating the statistics for the United States, there were 277 jewelry retailers, wholesalers and manufacturers that ceased operations in the first quarter, down 14 percent from 323 in the first quarter 2016.

This includes the closure of 217 jewelry stores, compared with 244 in the same period last year.

“I was surprised by the magnitude of the closures when we got the year-end numbers in January,” JBT President Anthony J. Capuano told National Jeweler on Friday. “I was glad to see the results (for Q1 2017), but let’s keep in mind that the trend is still for there to be fewer jewelry companies.”

The number of companies that ceased operations dropped to start the year but they still numbered nearly 300, and the number of new jewelry businesses was down as well.

In North America, 48 new businesses registered with the JBT in the first quarter 2017: 38 retailers, five wholesalers and five manufacturers. By comparison, there were 73 new businesses in the first quarter 2016.

Total listings also are down, from 29,439 at this point last year to 27,706 now, a 6 percent decline.

“The trend hasn’t reversed itself (though) the pace and the momentum that we saw pick up last year seems to have abated a bit,” Capuano said.

Another notable change in the JBT’s first quarter statistics was the rise in the number of industry bankruptcies.

JBT data shows that there were seven bankruptcies--four wholesalers and three retailers--in the United States in first quarter 2017, up from four in the same period last year. (There were zero bankruptcies recorded in Canada.)

Capuano said the uptick in jewelry industry bankruptcies mirrors the nationwide trend.

CNBC reported at the end of March that retail bankruptcies are poised to hit a post-recession high, with nine big retailers--mall stalwarts like Wet Seal, Limited Stores Co. and BCBG Max Azria along with electronics chain

HH Gregg--filing for Chapter 11 in the first quarter alone, equaling the total for all of 2016.

But, he said, bankruptcies in the jewelry industry still remain well off of what they were in 2008 and 2009 at the height of the Great Recession.

As in prior periods, retailers simply closing up shop account for the bulk of the JBT’s business discontinuances, which include companies that have ceased operations (as recounted above), companies that have filed for bankruptcy and mergers/acquisitions.

“What we are seeing is a lot of the mom-and-pops just closing their doors quietly, not really leaving any obligations,” he said, adding that they are having a going-out-of-business sale and exiting the industry or moving into being part-time or private jewelers.

For the rest of 2017, Capuano said he expects to see continued consolidation in the industry.

While he hopes the slowdown in business closures will continue into the second quarter, he said it’s premature to say that it’s a trend or to determine if the industry saw the zenith of closures last year.

“I hope it (the first quarter data) bodes well for the year, but I think it’s too early to tell.”
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Tyrese Maxey The 1916 Company campaign
IndependentsDec 23, 2024
Philadelphia 76ers’ Tyrese Maxey Stars in The 1916 Company’s New Campaign

The retailer’s “On the Clock” campaign celebrates how time, precision, and purpose come together.

Jewelry by Sorellina, Francesca Villa, Cece Jewellery, Retrouvai, Ray Griffiths, Cartier, Cocoerow Fine Jewelry, and Gumuchian
EditorsDec 23, 2024
My Favorite Piece of the Week Jewels of 2024

Associate Editor Natalie Francisco chose her 12 favorite Piece of the Week picks from the year gone by.

GIA emerald report
GradingDec 23, 2024
GIA Adds Filler Identification to Emerald Reports

Lab clients have the option to request this addition on their emerald reports.

ride_or_die_1872x1052.png
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday Campaign

A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’

Ella Klein Interns Jamie Dunton and Gabriella Botelho
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein Internship

Jamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.

Weekly QuizDec 19, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Retrouvai Green Sapphire and Diamond Heirloom Bezel Ring for Charity
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for Charity

In the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.

DeVries Jewelers
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the Holidays

Co-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.

me_myself_and_I_1872x1052 .jpg
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds

‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.

State Property Gardens Collection Campaign
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into Jewelry

Along with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.

Two people in a rowboat
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat Escape

The man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.

2488-carat diamond found in Botswana
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name

The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”

Rough rubies
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at Source

The average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.

alexandrite ring
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’s

The nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.

Tiffany & Co. pocket watch gifted to captain of the Carpathia
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co.

More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.

Picchiotti Spotlight Campaign Video Still
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video Campaign

The videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.

Steve Feldman
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to Retire

Feldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.

Chanel Quilted Stars Necklace
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry Excellence

The luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.

Frank Circelli
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75

Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.

Blue diamond ring
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’s

The nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.

Stock image of a gavel, handcuffs, and books
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison

The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.

Cover of the new book “The History of Diamond Engagement Rings: A True Romance”
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings

“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.

Rolex store on Rodeo Drive
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo Drive

Gearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.

GCAL 8X pear and marquise-cut diamonds
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes

The diamond cut grade is now available for marquise- and pear-shaped diamonds.

Claudia Cividino, Sissy’s Log Cabin, Shri Govind Dholakia, Tanishq
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award Recipients

DDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.

Selena Gomez, Benny Blanco, Engagement Ring
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement Ring

Estimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.

Martin Katz tanzanite drop earrings
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops

These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.

My Next Question webinar graphic
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024

The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy