Events & AwardsJun 05, 2023
HardRock Summit Organizers Gear Up for Third Annual ShowMore than 250 gem, jewelry, and mineral companies are expected to exhibit, including the American Gem Trade Association.
ColumnistsNov 11, 2020
On Data: Get Your Bestsellers In Stock Now
Sherry Smith says things are looking up for independent jewelers, but waiting to replenish top sellers could be a costly misstep this holiday season.
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
Steve Dennis wrote in “Remarkable Retail” that: “Historically, many retailers have been intuition rich and data poor. Or even if a decent amount of data was compiled, it was hard to work with or was ignored. For the merchant princes, more times than not, their mantra was, ‘In gut we trust.’”
I confess to having an insatiable curiosity when it comes to watching data; monthly, weekly, even daily.
This is especially so when it comes to how our independent retailers are faring during the pandemic, and more specifically, how they might perform during the holiday season.
Despite the crazy challenges of this year, independent retailers continue to overcome almost every obstacle thrown at them and are delivering exceptional performances.
For most retailers, June was the first month they fully reopened for business.
From June on, each subsequent month has seen sales performance top the same period from the previous year.
This impressive trend continued in October, which showed a 17 percent increase in gross sales.
And, as has been the case for quite some time, while the number of overall units sold continues a downward trend, average retail ticket keeps climbing.
The average retail sale for October was up 30 percent.
With respect to specific products, loose diamonds showed a 16 percent increase in gross sales in October, representing 15 percent of total gross sales for the month.
Diamond bands also showed solid performance and represented a 25 percent increase in gross sales in October when compared to the same period last year.
Interestingly, diamond bands are in fact one of the few categories that show an increase in all key performance indicators.
Beyond gross sales, bands were also up in units (+17 percent), average retail (+7 percent), and gross margin (+3 percent).
Historically, retailers have mostly viewed diamond bands as a wedding product.
However, this category has evolved to include right-hand rings, occasion bands (birthdays, anniversaries, etc.), and a variety of stackable designs, opening up far more opportunities for retailers to grow that category.
While there are some outliers, the sweet spot for most units sold in this particular category seems to be $300 to $1,500 according to our $2 billion of aggregated sales.
One of the best-selling SKUs we see in the diamond band category happens to be a price-point rose gold ring. However, the vast majority of bands are white gold prong-set with round brilliant diamonds.
Understandably, the disruptions of
I confess to having an insatiable curiosity when it comes to watching data; monthly, weekly, even daily.
This is especially so when it comes to how our independent retailers are faring during the pandemic, and more specifically, how they might perform during the holiday season.
Despite the crazy challenges of this year, independent retailers continue to overcome almost every obstacle thrown at them and are delivering exceptional performances.
For most retailers, June was the first month they fully reopened for business.
From June on, each subsequent month has seen sales performance top the same period from the previous year.
This impressive trend continued in October, which showed a 17 percent increase in gross sales.
And, as has been the case for quite some time, while the number of overall units sold continues a downward trend, average retail ticket keeps climbing.
The average retail sale for October was up 30 percent.
With respect to specific products, loose diamonds showed a 16 percent increase in gross sales in October, representing 15 percent of total gross sales for the month.
Diamond bands also showed solid performance and represented a 25 percent increase in gross sales in October when compared to the same period last year.
Interestingly, diamond bands are in fact one of the few categories that show an increase in all key performance indicators.
Beyond gross sales, bands were also up in units (+17 percent), average retail (+7 percent), and gross margin (+3 percent).
Historically, retailers have mostly viewed diamond bands as a wedding product.
However, this category has evolved to include right-hand rings, occasion bands (birthdays, anniversaries, etc.), and a variety of stackable designs, opening up far more opportunities for retailers to grow that category.
While there are some outliers, the sweet spot for most units sold in this particular category seems to be $300 to $1,500 according to our $2 billion of aggregated sales.
One of the best-selling SKUs we see in the diamond band category happens to be a price-point rose gold ring. However, the vast majority of bands are white gold prong-set with round brilliant diamonds.
Understandably, the disruptions of
Editors' Picks
Sponsored by
April and May had an adverse effect on retail performance, but the subsequent string of positive months has recovered much of the lost ground going into these remaining important weeks.
For the 12-month period ending July, we saw a 5 percent decline in overall sales year-over-year.
By August, the 12-month decline was 4.4 percent, and by September the decline was down to 3.4 percent.
While the data for October trailing 12 months is not yet available, it is anticipated that we will see further erosion of the trailing deficit.
So, what does this all mean for the important holiday period?
Retailers should continue with their COVID-19 initiatives such as curbside delivery, one-on-one appointments, virtual trunk shows and contactless payments.
Most importantly, they should continue to follow best practices around inventory management, especially, and most importantly, replenishing bestsellers as quickly as possible. Not doing so might just be the single greatest source of lost sales in the season.
If they’re not already doing so, retailers should review last year’s holiday performance to identify bestsellers and get them in immediately.
Vendors have had to manage their inventories tightly in what has been a very difficult year for them, and it could be a costly miss to assume that bestsellers will be available as the season develops.
Check your numbers, be proactive, and have a great holiday season!
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. Reach her at sherry@edgeretailacademy.com.
For the 12-month period ending July, we saw a 5 percent decline in overall sales year-over-year.
By August, the 12-month decline was 4.4 percent, and by September the decline was down to 3.4 percent.
While the data for October trailing 12 months is not yet available, it is anticipated that we will see further erosion of the trailing deficit.
So, what does this all mean for the important holiday period?
Retailers should continue with their COVID-19 initiatives such as curbside delivery, one-on-one appointments, virtual trunk shows and contactless payments.
Most importantly, they should continue to follow best practices around inventory management, especially, and most importantly, replenishing bestsellers as quickly as possible. Not doing so might just be the single greatest source of lost sales in the season.
If they’re not already doing so, retailers should review last year’s holiday performance to identify bestsellers and get them in immediately.
Vendors have had to manage their inventories tightly in what has been a very difficult year for them, and it could be a costly miss to assume that bestsellers will be available as the season develops.
Check your numbers, be proactive, and have a great holiday season!
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. Reach her at sherry@edgeretailacademy.com.
More on Columnists
The Latest
TrendsJun 02, 2023
Take a Peek at Couture’s Newest Design Talents This year’s Design Atelier is full of gems.
CollectionsJun 02, 2023
Piece of the Week: Saboo Fine Jewels’ Emerald EarringsThey’re a testament to the power of excellent design.
Brought to you by
The Next Step for GIA Diamond ReportsThe most trusted diamond report, available in print or the GIA App.
IndependentsJun 02, 2023
These Are the 2023 Retailer Hall of Fame InducteesThis year’s honorees include one of Florida’s largest independent jewelers and two multi-store independents in the Chicago and New York areas.
Weekly QuizJun 02, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
TrendsJun 01, 2023
See 50+ Jewels Debuting at Couture in Las VegasThe industry’s most influential contemporary designers are showcasing their latest jewelry designs.
Lab-GrownJun 01, 2023
35-Carat Lab-Grown Diamond Going on Display in VegasCreated by Maitri Lab-Grown Diamonds and graded by IGI, it’s slightly bigger than the record-setting lab-grown diamond GIA just examined.
Brought to you by
Beyond Borders: Crucial Factors in Colored Stone Origin DeterminationNavigate origin determination with Continuing Education seminars offered by the GIA Alumni Collective™.
MajorsJun 01, 2023
Bottom Line Marketing Announces Restructured Leadership, New Service OfferingsThe marketing agency has integrated its first C-suite.
Events & AwardsJun 01, 2023
Meet JCK’s 2023 Keynote SpeakerThe jewelry trade show also will debut educational content centered around social media.
TrendsMay 31, 2023
Here’s a Sneak Peek of New Jewelry to Check Out at JCKLuxury kicks off today, with the full show in swing on Friday.
CollectionsMay 31, 2023
Verragio’s Debut Fine Jewelry Collections Honor Company HeritageOne of the three new collections was inspired by the legend of a woman who traded her mansion to Cartier for two strands of natural pearls.
MajorsMay 31, 2023
Signet Jewelers Names New Head of Investor RelationsRob Ballew will be tasked with communicating the jewelry giant’s plans and financial performance to investors.
MajorsMay 31, 2023
Jewelers Mutual Launches App for Retailers, Introduces New BrokerageWith the app, customers receive a 15-day insurance offer on new purchases while their coverage needs are being evaluated.
Lab-GrownMay 30, 2023
Lightbox Is Testing Out a Trendy Concept Shop in BrooklynIt is in House of Showfields, a bazaar-style retail space in the borough’s Williamsburg neighborhood.
Events & AwardsMay 30, 2023
These Are the Can’t-Miss JCK Talks Education SessionsFrom consumer trends to retail technology, these are the JCK Talks sessions that should be on attendees’ radar.
AuctionsMay 30, 2023
Sotheby’s to Auction Mellon Family JewelrySignature pieces from Cartier and David Webb will appear in the June jewelry auction.
Events & AwardsMay 30, 2023
24 Karat Club of Southern California Recognizes 3 HonoreesThey will be celebrated at the annual dinner dance and gala in the fall.
GradingMay 26, 2023
State of the Diamond Industry: AI and the Future of Diamond GradingGemologists have long used machines in diamond grading but technology has made it possible for them to “learn” how to do it on their own.
Recorded WebinarsMay 26, 2023
Watch: Diamond Cut Quality: The Final Frontier Part 2Supplier Spotlight Sponsored by IGI
Recorded WebinarsMay 26, 2023
Natural and Lab-Grown Diamonds: What It’s Like to Sell Both Watch retailers Jeffery Bolling and Bobby Bengivengo discuss employee training, customer education and the sticky subject of future value.
FinancialsMay 26, 2023
Movado Sales Slip in Q1 Amid Inflation Woes, Tough CompsThe company has plans to revamp the Movado brand and offer less expensive watches this year.
AuctionsMay 26, 2023
Piece of the Week: A Bulgari Sapphire and Diamond NecklaceSet with a 118-carat unheated Sri Lankan sapphire, it just sold for $3.4 million at Phillips jewelry auction in Hong Kong.
Supplier BulletinMay 25, 2023
RAE Fine Jewelry Collection Debuting at JCK Luxury 2023Sponsored by Noam Carver
TechnologyMay 25, 2023
State of Retail: Why Jewelers Need to Invest in Cybersecurity NowAs cybercrime incidents threaten the industry, jewelers need to know what they’re up against and the best ways to protect their businesses.
IndependentsMay 25, 2023
Louis Anthony Jewelers Is Remodeling and ExpandingThe Pittsburgh jeweler is redoing the lighting and showcases, and adding a full hospitality bar as well as new shop-in-shops.
SourcingMay 25, 2023
David Yurman Unveils Quartz Exhibition at AMNH The Yurman Family Crystalline Pass is inside the museum’s brand-new Richard Gilder Center.
