Other

3 retail predictions for 2015

OtherDec 28, 2014

3 retail predictions for 2015

Analysts and independent jewelers offer their prognostications on the forces that will shape retail in the coming year.

New York--Jewelers and market observers anticipate a more competitive year in 2015, in what is already an ultra-competitive retail climate.

The high and low ends of the business will grow at the expense of the middle, and jewelers
will face continued competition from other categories, especially electronics.

At the same time, digital marketing will gain even more importance as a means to attract customers while brands will remain key to success, whether it’s a well-known name or a store making itself the brand.

Below, retail analysts and independent jewelers offer their prognostications for 2015.

1) The industry will continue to shrink while the importance of brands continues to grow.
Increased consolidation of chain jewelers could lead to mergers, acquisitions and liquidations among suppliers, according to Howard Feller, partner at MMG Advisors, an investment bank that specializes in retail- and fashion-related mergers and acquisitions.

The acquisition of Zale Corp. by Signet Jewelers, which put the Zale, Kay, and Jared chains under the same corporate umbrella, will have a ripple effect on suppliers, he says.

RELATED CONTENT: Signet-Zale: The culmination of consolidation

“The suppliers that survive will have more marketing power; other suppliers will liquidate or be acquired,” Feller said. “Smaller retail chains and individual stores might consolidate, too, and more private capital will come into the industry.”

He said that traditional wholesalers of gold and non-branded diamonds will feel the most pressure. “If they can’t get an adequate return, we’ll see a wave of consolidation, and more action by branded suppliers that have more runway. Organic growth will be hard to come by, so retailers and suppliers with strong balance sheets will try to grow through acquisitions,” he said.

In addition, Feller said he sees more emphasis on proprietary brands, like Vera Wang, the wedding dress designer who has a branded line of sterling silver jewelry sold at Kohl’s as well as a bridal line sold by Zales. Retailers, he said, want a name brand that will drive customers to their stores.

2) Digital definitely isn’t dying.
Digital marketing will become even more important in 2015, said Ellen Fruchtman of Toledo, Ohio-based Fruchtman Marketing. Retail jewelers will spend a minimum of 25 percent of their overall marketing budget in digital media, with many spending significantly more, she estimated.

“This will include items like online banner placements, paid search, and social marketing,” she said. “Less money will be

spent in traditional forms of media like terrestrial radio (conventional radio, not Internet or satellite radio) and network TV, and more money will be spent in targeted cable TV and new media such as Pandora and iHeart radio.”

She said that stores in smaller markets will have a greater ability to compete based on their digital presence and ability to invest in this area, since the cost of entry is not as great. She added that more websites will be made mobile-responsive in 2015.

Fruchtman also predicted jewelers will look for marketing programs with measurable returns on investment, and will hold their staff accountable for higher closing ratios.

 Retailers will spend more on jewelry education and training, as well as on software packages that can segment clientèle based on sales and product preferences.

“Custom jewelry will be the greatest growth area in 2015,” she said. “Consumers are looking for pieces that are unique to them, and this can be by far one of the most profitable segments of the business.”

3) Retailers will have to remain creative.    
At the store level, retailers reported mixed results for this year and mixed expectations for 2015, but they seem to agree that most of the action will take place at the low and high ends of the price spectrum, and that it won’t be easy to increase profits.

“Our business was slow, the first part of the holiday season, and picked up at the end,” said Terry Dickens, co-owner of Herteen & Stocker Jewelers in Iowa City, Iowa. “Bigger diamonds are doing well, and diamond earrings are coming back after a couple of years away. At the low end, Endless Jewelry is doing very well.”

Several jewelers report that buying off the street has become a more important part of their strategy. Erik Runyan, owner of Erik Runyan Jewelers in Vancouver, Wash., said it’s a way of staying competitive and going after the loose diamond business.

“We had to learn to lose some of our pride and apprehension with regard to buying over the counter,” he said. “I was afraid it would soil the brand, but now I take advantage of any opportunity to buy items I can sell competitively. I didn’t have a single piece of vintage jewelry, a few years ago, but now it’s 10 to 15 percent of the store.

“Bridal kept us alive during the downturn, and I still try to market myself as a diamonds and bridal store. I sell finer diamonds with certificates: People are more knowledgeable and sophisticated every year because information is at everyone’s fingertips now.”

Runyan also noted the importance of brands, but one very specific brand: his own.

“Strong relationships with branded lines are waning,” he said. “I’m focusing on what Erik Runyan stands for, in quality and our standing in the community. We’re using our name and products as a value-add, rather than adding value with someone else’s brand.”

John O’Rourke, president and CEO of Montica Jewelry in Coral Gables, Fla., said he, too, is buying off the street more.

He also offers a “perpetual upgrade” policy, by which you can trade your diamond in for what you paid for it. Montica is leveraging its name and trying to position itself as a byword at the high end, he added.

“There’s more competition these days,” says O’Rourke, “and it’s coming not just from other jewelers, but from the electronics industry. Young people with money to spend will go to a Best Buy or an Apple Store. Another challenge is that there’s been so much discounting since 2008, so it’s hard to incentivize a customer with a promotion.

“Ninety percent of our business comes from 10 percent of our customers, so we’re going to grow that percentage,” he said.  
O’Rourke transformed a section of his store’s showroom into a diamond room.

“Customers see that, and see that we’re in the diamond business. Our new tagline is ‘The Diamond Destination.’ By changing our logo and tagline, and showing customers that diamond area, we’re automatically pushing a higher price point, and conveying to the customer that they’ve found the right store.” 
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Stock image of gavel
CrimeDec 15, 2025
Men Receive Life Sentences in Home Invasion Murder of Jeweler

Carlos Jose Hernandez and Joshua Zuazo were sentenced to life without the possibility of parole in the 2024 murder of Hussein “Sam” Murray.

Eduard Stefanescu, left, and Sara Yood, right
Policies & IssuesDec 15, 2025
Sara Yood Named Co-Chair of RJC Standards Committee

Yood will serve alongside Eduard Stefanescu, the sustainability manager for C.Hafner, a precious metals refiner in Germany.

MS Rau Aspen rendering
IndependentsDec 15, 2025
M.S. Rau to Open Store in Aspen

The New Orleans jeweler is also hosting pop-up jewelry boutiques in New York City and Dallas.

Recipients Collage 2025 - NJ (1872 x 1050 px) (1872 x 1052 px).png
Brought to you by
Impacting Tomorrow Today

How Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.

Tiffany & Co. Paraíba tourmaline jewelry
AuctionsDec 12, 2025
13.54-Carat Paraíba Tourmaline Sets Records at Christie’s

Set in a Tiffany & Co. necklace, it sold for $4.2 million, the highest price and price per carat paid for a Paraíba tourmaline at auction.

Weekly QuizDec 11, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
David Webb holiday window
MajorsDec 12, 2025
David Webb Reveals Ice-Cold Holiday Window Display

The jeweler’s “Deep Freeze” display showcases its iconic jewelry designs frozen in a vintage icebox.

Oscar Heyman Yellow Green Sphene and Diamond Ring
CollectionsDec 12, 2025
Piece of the Week: Oscar Heyman’s Sphene Ring

Take luxury gifting to new heights this holiday season with the jeweler’s showstopping 12-carat sphene ring.

roseco-catalog.png
Brought to you by
Roseco Releases New Full-Line Catalog

Roseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.

IGI Design Contest Graphic
Events & AwardsDec 12, 2025
IGI Jewelry Design Contest Now Accepting Submissions

This year's theme is “Unveiling the Depths of the Ocean.”

Jacquie Aiche Alien Heart Eye Inlay Necklace, Cicada Dragonfly Brooch, Harkness After the Rain Earrings
TrendsDec 11, 2025
Pinterest 2026 Trend Report: Brooches, Bold Gold, Cool Blue

In its annual report, Pinterest noted an increase in searches for brooches, heirloom jewelry, and ‘80s luxury.

GIA new colored stone report
GradingDec 11, 2025
GIA to Offer Origin Determination for 3 More Gemstones

Starting Jan. 1, customers can request the service for opal, peridot, and demantoid garnet.

Day’s Jewelers Salem New Hampshire store exterior
IndependentsDec 11, 2025
Look Inside Day’s Jewelers’ Ninth Store

The 111-year-old retailer celebrated the opening of its new location in Salem, New Hampshire, which is its third store in the state.

Americas Gold Chain Catalog Volume 3
MajorsDec 11, 2025
Americas Gold Releases New Gold Chain Catalog

The new catalog features its most popular chains as well as new styles.

F.P. Journe FFC prototype
AuctionsDec 10, 2025
Francis Ford Coppola’s Watch Sells for $10.8M

The filmmaker’s personal F.P. Journe “FFC” prototype was the star of Phillips’ recent record-setting watch auction in New York.

Rolex Miami store
WatchesDec 10, 2025
There’s A New Rolex Boutique in Miami

The new location in the Design District pays homage to Miami’s Art Deco heritage and its connection to the ocean.

Stock image of consumers shopping in the winter
SurveysDec 10, 2025
Consumer Confidence Drops in November

Inflations, tariffs, and politics—including the government shutdown—were among consumers’ top concerns last month.

National Association of Jewelry Appraisers logo
SourcingDec 10, 2025
NAJA Announces Details for 2026 ‘Ace It’ Winter Conference

“Longtime favorite” presenters, as well as first-time speakers, will lead talks and workshops at the annual event in Tucson next year.

Silas Smith and his Responsible Design Challenge Winning Pendant
Events & AwardsDec 10, 2025
MJSA Names 2025 Responsible Design Challenge Winner

Silas Smith of Meridian Metalworks won the challenge with his pendant that blends Australian and American landscapes.

Sothebys orangy pink The Desert Rose diamond
AuctionsDec 09, 2025
‘Desert Rose’ Diamond Sells for $8.8M in Abu Dhabi

The sale of the 31.68-carat, sunset-hued stone was part of Sotheby’s first series of events and auctions in Abu Dhabi.

National Jeweler columnist and Smart Age Solutions CEO Emmanuel Raheb
ColumnistsDec 09, 2025
Holiday Sales Happen in December, Most Decisions Don’t

Most customers who walk into your store this month have made up their minds. Your job is to validate their choice, Emmanuel Raheb writes.

Guzema Once Upon a Time Collection Campaign
TrendsDec 09, 2025
‘Once Upon a Time,’ Guzema Debuted Its Holiday Collection

The collection features characters and motifs from Ukrainian folklore, including an enchanted mirror and a magic egg.

Gemvision by Stuller MatrixGold 3.11
TechnologyDec 09, 2025
Gemvision Releases Updated MatrixGold

MatrixGold 3.11, the newest version of the jewelry design program, offers more flexibility, precision, and creative control.

Sign at the JA New York jewelry trade show
Events & AwardsDec 09, 2025
MJSA Showcase Pavilion Returning to JA New York

The pavilion will be part of the 2026 JA New York Spring show, scheduled for March 15 to 17.

Juell Kadet, former executive vice president of Rogers & Hollands
MajorsDec 08, 2025
Juell Kadet, a ‘Lifelong Pillar’ of Rogers & Hollands, Dies at 96

Kadet, a 1994 National Jeweler Retailer Hall of Fame inductee, helped grow the family-owned retailer in the Chicago area and beyond.

Lumia 2 smart earrings
TechnologyDec 08, 2025
You’ve Heard of Smart Watches and Rings; Meet Smart Earrings

Billed as the world’s smallest wearable, Lumia Health’s new smart earrings have a health tracker subtly embedded in the back.

Lionheart Wildflower Double Cocktail Ring
TrendsDec 08, 2025
Amanda’s Style File: Celebrating December’s Birthstones

Don’t let those with December birthdays feel blue. Help them celebrate their month with blue zircon, turquoise, and tanzanite.

Robinson Pelham Tsar Star Earrings in Blaze
CollectionsDec 05, 2025
Piece of the Week: Robinson Pelham’s ‘Tsar Star’ Earrings

The new pink sapphire version of the piece dances with its wearer in the brand’s “Icons After Dark” holiday campaign.

×

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