It’s the Signet-owned banner’s first location in Georgia.
4 Predictions on Retail and Diamond Desire in 2019
It will be a watershed year for man-made diamonds, Editor-in-Chief Michelle Graff writes.
![A man-made diamond engagement ring in the packaging for “Grown With Love,” the lab-grown diamond line sold at Macy’s and J.C. Penney. With so many lab-grown diamonds hitting the market, our editor-in-chief says 2019 will be a watershed moment for the industry. 2019_Grown_With_Love_box.jpg](https://uploads.nationaljeweler.com/uploads/4137d08bf546d6fbb2fe9105d30f492f.jpg)
Last month, I had the pleasure of traveling to sunny Scottsdale, Arizona for the annual Centurion show and of catching up with retailers after the holiday season.
What I mostly heard was this: 2018 was a good year and jewelers were expecting a strong December, but the month took a dive alongside the stock market. And the events of late 2018/early 2019, including the 35-day government shutdown, have left retailers feeling unsure what to expect in the year ahead.
What is certain, however, is that this year is going to be very telling in terms of lab-grown diamonds. How will consumers take to the lines that are out there? Will they buy them for fashion jewelry or engagement rings? Will one brand or company begin to emerge as the dominant player in the space?
Read on for four thoughts on what lies ahead for the jewelry industry in 2019.
1. Retailers are feeling ________ about 2019.
Cautiously optimistic. Concerned. Unsure. These are all words I heard circulating at Centurion after a disappointing December capped off an otherwise strong year in 2018.
What will happen with the trade war? Will there be another shutdown (this was talked about at Centurion, although the answer now seems to be no)? How much did the first one shake up consumers?
Are we headed for a recession? Recessions are especially problematic for jewelry because it’s a discretionary purchase; you don’t need to replace a ring the same way you need to replace a car or a refrigerator. As one retailer put it: “We’re the first thing to go.”
Another word that came up: nervous, and it’s not just retailers who are nervous.
“I think everybody is just nervous about everything,” one retailer from the south shared.
She said she feels like she has the right merchandise and marketing in place at her store, but whether people will buy is the big unknown at this point. She also noted that looming ahead of 2019 is a presidential election year and an election always “screws things up.”
Feel free to fill in the blank with your own adjectives in the comments section below.
2. The year will tell us a lot about how consumers view diamonds, and Valentine’s Day will be the first big test.
A head-spinning number of headlines about lab-grown diamonds hit the internet every day, but I think they all can be boiled down to this:
Consumers are going to buy them, though in what quantities and for what purposes remains to be seen.
My guess: They will take a big bite out of the middle market, particularly for lower-priced fashion jewelry.
Yes, some will buy lab-grown diamond engagement rings, but I think the bulk of man-made diamond sales will be to those consumers who say, “Hey, I can get a nice version of this diamond earring/necklace/bracelet for less. Who cares about the romance of it coming from the Earth? I’m saving money, and it’s a nice gift for myself/my daughter/my best friend.”
As I noted above, however, this is just a guess, and time will ultimately tell what consumers want—lab-grown or mined—and what they want it for, with 2019 being a watershed moment in that story.
How will, for example, J.C. Penney and Macy’s do with “Grown With Love,” the line featuring diamonds grown mainly by WD Lab Grown Diamonds and set in jewelry manufactured, distributed and marketed by Richline? Will they sell enough to continue those lines?
How will Lightbox fare, and will De Beers continue to push the envelope, introducing bigger and better stones and more styles, including rings?
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What about fashion lines like Atelier Swarovski x Stephen Webster? How well will those sell, and will the designers who made them keep going? Will we see one designer come up with that have-to-have design using man-made diamonds and emerge as the dominant player?
And what about the diamond growers themselves, companies like Diamond Foundry, the California-based company that experimented with, but ultimately didn’t make it in, brick-and-mortar retail? What will their role in the future of the industry look like?
3. Smart companies will stop and think.
In addition to acting as a gauge on consumers’ appetite for man-made diamonds, 2019 is going to be a good year for those selling diamonds today—man-made or natural—to evaluate the market for diamond jewelry going forward.
Some questions that spring to mind include:
--How are changing societal attitudes toward marriage in the U.S. going to impact demand for diamonds, given that engagement rings represent a big chunk of the market?
People are getting married later, often living together and/or having children first.
Or they’re not getting married at all. The U.S. Census Bureau released a “Families and Living Arrangements” table in 2018 that showed that single-person households comprised 28 percent of all households in the U.S. last year. In 1960, that number was 13 percent. The table also showed that 32 percent of all adults age 15 and over have never been married.
Are these long-term trends (I would say yes, for a variety of reasons) and, if so, is diamond marketing prepared to evolve to reflect that?
--How will diamonds stand up in the face of increased competition and, for some groups, declining discretionary income?
There are so many things to spend money on today, aren’t there? As The Wedding Report founder Shane McMurray noted in my story on engagement ring spending, there’s lattes and dinners out and gadgets and clothes, not to mention to the rise in the amount people are spending on what is generally referred to as “wellness”—special vitamins, yoga classes, boutique gym memberships, juice cleanses, etc.
Add to this the fact that many people’s wages aren’t keeping pace with the cost of living, and it equals less money for everything that’s not necessary.
--For those with plenty of discretionary income, what is the No. 1 luxury item that’s taking money away from diamond jewelry?
I would guess it’s not a tangible item, like a handbag or a pair of shoes, but rather experiences, particularly travel. Is there a way to compete with that?
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4. Well-known retailers will continue to file for bankruptcy.
This last one is a bit of a cheat, as we’re less than 50 days into the year and, already, we’ve seen seven retailers go Chapter 11, according to Retail Dive’s running list of bankruptcy victims for the year. Among them were long-time mall staples Things Remembered, Gymboree and Charlotte Russe.
So which stores that carry fine jewelry are in danger in 2019?
I predicted in early 2018 that Sears would cease to exist and while it has risen from the ashes, it’s hard to imagine what it can do to make itself relevant again and stay in business.
J.C. Penney is another retailer we’ve been watching for a while, and Neiman Marcus is also a name that keeps popping up on various bankruptcy watch lists, with some predicting that 2019 could be on par with 2017 in terms of the number of retailers going Chapter 11.
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![These “Double Loop” earrings feature a drop-cut amethyst sitting atop the lower hoop, totaling 1.60 carats between both earrings. The hoops are made of silver covered in “pistacchio” colored enamel, while 9-karat yellow gold holds the stones in place and connect the two hoops behind the earlobe ($1,770). Bea Bongiasca’s Double Loop Earrings](https://uploads.nationaljeweler.com/uploads/f338ef6b4603be3c97765f833b831ca0.jpg)
Commemorate “brat summer” with these green hoops.
Sponsored by Gemological Institute of America
![Untitled design.jpg](https://uploads.nationaljeweler.com/uploads/583fbcb2bb839782810080debef35d3c.jpg)
As the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.
![Earlier this month, online giant Amazon and the Better Business Bureau filed a joint federal lawsuit against ReviewServiceUSA.com for allegedly selling fake reviews, both positive and negative. Amazon package outside door](https://uploads.nationaljeweler.com/uploads/27fce4225a38900d54a5536ce523a22d.jpg)
They claim ReviewServiceUSA.com was selling both positive and negative reviews of products and businesses.
![](https://uploads.nationaljeweler.com/uploads/99a46b30cc354962ac2e29ecd113587a.jpg)
![A shot of the Venetia diamond mine in South Africa, owned by De Beers Group. The diamond miner and marketer saw revenue drop 21 percent and rough diamond sales decline 20 percent in a “weak” market for diamonds. De Beers’ Venetia diamond mine](https://uploads.nationaljeweler.com/uploads/a1f16ceaaba662e80385166060d192a7.jpg)
Lab-grown diamond sales in the United States and ongoing economic challenges in China are impacting natural diamond demand.
A longtime member of IJO, she’s remembered for her passion for design, learning, and environmentalism.
![1872 x 1052 Gemolite.jpg](https://uploads.nationaljeweler.com/uploads/9d60901b44425a53b9010301897a3bbc.jpg)
GIA®’s most advanced microscope has new features to optimize greater precision and comfort.
![A malachite and diamond bracelet from Pomellato’s “Pom Pom Dot” collection, launched earlier this year. Pomellato and Boucheron were bright spots for Kering in an otherwise underwhelming first half of the year. Pomellato Malachite Pom Pom Dot bracelet](https://uploads.nationaljeweler.com/uploads/3c237b62e009742fc52487097daf3c5a.jpg)
The gains come amid a tough time for parent company Kering, which saw sales slide 11 percent in the first half of the year.
![Volunteers and Shane Co.’s corporate team from all 22 locations of the family-owned jewelry chain have begun packing backpacks with school supplies for teachers to distribute to their students this school year. Shane Co. and the Kids in Need foundation logo](https://uploads.nationaljeweler.com/uploads/1c5abfb36ec775724f014f47bfbb47fc.jpg)
The fine jewelry retailer filled backpacks with back-to-school essentials for students in 13 states.
![A shot from the advertising campaign for LVMH-owned Bulgari’s “Eden the Garden of Wonders” high jewelry collection. LVMH’s jewelry and watch sales slipped in the first half of the fiscal year. Bulgari high jewelry campaign](https://uploads.nationaljeweler.com/uploads/c24eb75ca8cea44d2e9859648f4a98ee.jpg)
Tiffany & Co. is focusing on its “iconic” collections while the company has made changes at the top at TAG Heuer and Hublot.
![Chaumet, a Parisian jeweler owned by LVMH, has designed the Olympic and Paralympic Games medals. Chaumet Paris 2024 Olympics medals](https://uploads.nationaljeweler.com/uploads/7831b3a738baddfc7d783e6df0fbf796.jpg)
The Parisian brand is the first jewelry company in the history of the Olympic and Paralympic Games to design the medals.
![The acquisition of Union Life & Casualty by Jewelers Mutual will help strengthen both the pawn market and the insurance industry, said JM. Jewelers Mutual and Union Life and Casualty logos](https://uploads.nationaljeweler.com/uploads/195925667226ecfc51b4e1bb09607143.jpg)
Union Life & Casualty will join JM Insurance Agency Partners, expanding the provider’s pawnbroker coverage.
![The winner of this year’s Lonia Tate scholarship, Bradlei Smith will receive the opportunity to earn her Graduate Gemologist diploma from GIA and, following graduation, an internship at Ben Bridge Jeweler in Seattle. Bradlei Smith](https://uploads.nationaljeweler.com/uploads/996834935ae30a7a1195db8b9db6cb7d.jpg)
Los Angeles-based Bradlei Smith was selected for this year’s award.
![Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com. National Jeweler columnist Peter Smith](https://uploads.nationaljeweler.com/uploads/bec7295a7f478778b1c196e6d81e7cd9.jpg)
In his latest column, Smith shares multiple reasons why people who look at the glass as being hall full often make better salespeople.
![De Beers Group mined 6.4 million carats of diamonds in the second quarter of 2024, down from 7.6 million in the same period last year. (©De Beers Group/Photo credit: Ben Perry @ Armoury Films) De Beers rough diamond display](https://uploads.nationaljeweler.com/uploads/80cd02b1c8384f4b2efda0bcdf6a75e1.jpg)
The company also reported the $150 million sale of an iron ore royalty right, part of its ongoing effort to divest “non-core” assets.
![In honor of its summer bridal event, Long’s Jewelers is partnering with Wequassett Resort and Golf Club on Cape Cod in Massachusetts, and jewelry brand JB Star on a vacation giveaway. Long’s Jewelers giveaway promo](https://uploads.nationaljeweler.com/uploads/4e7a90944c4e8875a4f3818dbe26b28b.jpg)
The giveaway is part of the New England jeweler’s summer bridal event.
![L.A.-based flower designer, Sophia Moreno-Bunge models Guzema’s “Hidden Beauty” collection in front of a garden in Rustic Canyon in Santa Monica, California. Sophia Moreno-Bunge of Isa Isa modeling Guzema’s Hidden Beauty collection](https://uploads.nationaljeweler.com/uploads/6f3822623eb7fd2f6468f82825194cb1.jpg)
The ad features three celebrity florists creating floral sculptures while wearing jewelry by Guzema.
![The Entrepreneurship Grants program supports winners with financial aid to scale their businesses and increase their societal impact, said Diamonds Do Good. Pictured here are three of the 13 winners, top right is Tresia Shituula, and bottom row left to right, are Monkgogi Moshaga and Mohamed Samu. Tresia Shituula, Monkgogi Moshaga, Mohamed Samu](https://uploads.nationaljeweler.com/uploads/a7c9b87301b76a9446f6522747ce5b95.jpg)
The grant provided a total of $100,000 to support 13 entrepreneurs from diamond communities in Africa and India.
![Ghazi Osta, better known as Gus, was the owner and president of Volusia Gold & Diamond, a store he and his wife, Leigh Osta, opened in 1986. He was shot and killed inside the store Friday afternoon after a brief argument with a regular customer. (Photo courtesy of Volusia Gold & Diamond Facebook page) Ghazi “Gus” Michel Osta](https://uploads.nationaljeweler.com/uploads/c8c1fa3df746cbd364915a98dcac9d21.jpg)
Ghazi Michel Osta, or “Gus,” was killed Friday by an 83-year-old man said to be a frequent customer at his store, Volusia Gold & Diamond.
![Elyssa Jenkins-Pérez (left) is the Responsible Jewellery Council’s new head of North American development, and Effie Marinos is its new specialist advisor for technical standards. Elyssa Jenkins-Perez and Effie Marinos](https://uploads.nationaljeweler.com/uploads/94332af0c7a776e7a8c36fabf76baa5f.jpg)
The organization also announced Effie Marinos as its new specialist advisor for technical standards, as well as four other appointments.
![Karen Rentmeesters, who joined the Antwerp World Diamond Centre in 2010, will take on the role of CEO. Karen Rentmeesters](https://uploads.nationaljeweler.com/uploads/3256fcc71cd43a399055c61f68486269.jpg)
Rentmeesters has served as interim CEO since April following former CEO Ari Epstein’s resignation.
![Longtime Washington, D.C., jeweler Brian Mann (right) with his wife Jessie Mann, an artist who custom-paints porcelain Limoges Boxes, at a 2016 Jewelers of America member event. Mann, the longtime co-owner of David Mann Jewelers, died June 21 at age 70. Brian and Jessie Mann](https://uploads.nationaljeweler.com/uploads/be4debc6e0b3198943a66ef0e2197c2c.jpg)
Mann, whose family’s jewelry store was located inside the Pentagon, is remembered for being a thoughtful champion of the industry.
![The 1916 Company recently opened a new Tudor boutique in Denver’s Cherry Creek Shopping Center. Tudor store in Denver](https://uploads.nationaljeweler.com/uploads/9f8600ea53ed731963331ebd28a10d16.jpg)
The 500-square-foot boutique is located in Denver’s Cherry Creek Shopping Center.
![This necklace from Messika’s “So Move Max” set is made of yellow gold with 19.18-carats of brilliant-cut diamonds and designed with circle motifs that move within the links (price upon request). Messika’s So Move Max Necklace](https://uploads.nationaljeweler.com/uploads/14c78af4a4e8c6b996a81bbb5a5bc69f.jpg)
Dance all night long with the “So Move Max” set’s necklace.
![On Sept. 1, Julien Tornare (left), current CEO of TAG Heuer, will become CEO of Hublot. Antoine Pin, now the general manager of Bulgari’s watch business, will take over Tornare’s role as CEO of TAG Heuer. (Images courtesy of LinkedIn) Julien Tornare and Antoine Pin](https://uploads.nationaljeweler.com/uploads/b24627b34ece895ddd254bae22751fb8.jpg)
Luxury giant LVMH is reshuffling the leadership in its watches division.
![A rendering of a billboard from Etsy’s new campaign. The campaign is designed to highlight the platform’s creators and how their products are made. Etsy billboard rendering in NYC](https://uploads.nationaljeweler.com/uploads/9a94f394f326b90dc1c9da6a711c5e09.jpg)
Sellers and shoppers have spoken out against a rise in mass-produced merchandise on the platform meant to highlight handmade goods.