MajorsDec 24, 2024
Nordstrom Family, Partner to Take Retailer Private in $6B DealMembers of the founding family have partnered with Mexican retail company El Puerto de Liverpool to acquire Nordstrom.
EditorsNov 19, 2015
Demographic drop-off
Editor-in-Chief Michelle Graff looks at the reasons why people are getting out of, and not getting into, the jewelry industry.
A few weeks ago, we published a story on the latest quarterly statistics from the Jewelers Board of Trade, which showed that the size of the jewelry industry is continuing to contract, meaning more people are getting out of this business than are getting into it.
The reasons for the industry shrinkage are varied and, though they have been well documented up to this point, after I wrote my most recent JBT story, I began reaching out to retailers and others in the industry to get their perspective. What do they think is the No. 1 factor, or factors, contributing to jewelers closing?
As it turned out, very few could narrow it down to just one thing, but one answer that came up in nearly every reply was this: simple demographics.
The baby boomers, which are the second-largest generation in the U.S., second only to their millennial children, have been running the country’s jewelry stores—and essentially its jewelry industry—for years, but guess what’s happening to them? The same thing that happens to everyone: they are getting old and they want to retire.
I can’t say I blame them.
Retail has changed completely in recent years and in order to keep up in this digital age, jewelers have to figure out new ways of reaching customers and stock different kinds of product—some of which might not be the fine jewelry they are used to—all while fending off online competition and keeping up with the expectations of an increasingly demanding, but not necessarily spendthrift, consumer.
If you were in your mid-50s or 60s and staring down the last five or 10 years of a long career, would you be willing to put in the time and energy to completely change your business if you had the means, or enough of the means, to retire? I wouldn’t.
Some might say the problem is that jewelers are unable to adapt to retailing in the digital age, but I don’t think that’s always the case. I think in some cases it’s more a matter of willingness. Why change
your business completely, with no promise that it’s going to pan out, just to keep your shop open a few more years?
As Dennis Petimezas, owner of Watchmakers Diamonds and Jewelry in Johnstown, Pa., put it, “If you’re 75 to 80 percent of where you need to be to successfully retire, why take the risk? ... Can a mature independent afford to make a mistake at this point and have to work even longer to then try and correct it?”
I think it’s more logical to just take the money you can get out of your business now and retire. Or, if you still need the money and/or just aren’t ready to spend all day on the golf course, do something still jewelry-oriented but perhaps a little (or a lot) less stressful than being a small business owner.
Another factor contributing to the shrinking industry is the decreasing number of young people stepping into the family business.
There are some who say the younger generation is not willing to put in the time it takes to run a small retail store, but I don’t agree with that blanket statement any more that I agree with the assertion that older jewelers are retiring simply because they can’t figure out Facebook.
The majority of companies today are running lean, with one employee shouldering a workload that once was handled by two or even three people. Staff are working long hours no matter what the profession, made longer by the fact that people are on email nearly 24 hours a day.
I don’t think it’s a matter of young people not being willing to work; I think, in many cases, it’s just a matter of them picking different career paths, working for companies that are much younger and, by extension, seem hipper and cooler.
Jewelry isn’t the only industry with this problem.
Over the summer, Fortune magazine did a video interview with GE CEO Jeff Immelt.
Immelt told the interviewer that luring young talent away from Facebook, Google and startups and to GE is one of the issues that keeps him up at night, and this concern is evident in GE’s current advertising campaign featuring Owen, a new, young programmer/developer at GE.
Have you seen these commercials? There are a couple different versions (one of which you can view below) but the message in each is clear: Young people, come work at GE. The work you’ll be doing here will transform the way the world works.
Jewelry does not have its own Owen, but that does not mean the industry’s organizations are ignorant of the need to attract young talent.
The Diamond Council of America, MJSA, the Independent Jewelers Organization, the American Gem Society, the International Colored Gemstone Association and U.S. Antique Shows, which just crowned its first “Antique Young Gun” this past weekend, all are working to pique the next generation’s interest in jewelry. Our associate editor, Brecken, profiled their efforts in our last digital magazine.
It’s not a BBDO-created national advertising campaign on the same scale as GE’s Owen. But, it is a step in the right direction, and it addresses one of the problems impacting the incredible shrinking jewelry industry.
As Dennis Petimezas, owner of Watchmakers Diamonds and Jewelry in Johnstown, Pa., put it, “If you’re 75 to 80 percent of where you need to be to successfully retire, why take the risk? ... Can a mature independent afford to make a mistake at this point and have to work even longer to then try and correct it?”
I think it’s more logical to just take the money you can get out of your business now and retire. Or, if you still need the money and/or just aren’t ready to spend all day on the golf course, do something still jewelry-oriented but perhaps a little (or a lot) less stressful than being a small business owner.
Another factor contributing to the shrinking industry is the decreasing number of young people stepping into the family business.
There are some who say the younger generation is not willing to put in the time it takes to run a small retail store, but I don’t agree with that blanket statement any more that I agree with the assertion that older jewelers are retiring simply because they can’t figure out Facebook.
The majority of companies today are running lean, with one employee shouldering a workload that once was handled by two or even three people. Staff are working long hours no matter what the profession, made longer by the fact that people are on email nearly 24 hours a day.
I don’t think it’s a matter of young people not being willing to work; I think, in many cases, it’s just a matter of them picking different career paths, working for companies that are much younger and, by extension, seem hipper and cooler.
Jewelry isn’t the only industry with this problem.
Over the summer, Fortune magazine did a video interview with GE CEO Jeff Immelt.
Immelt told the interviewer that luring young talent away from Facebook, Google and startups and to GE is one of the issues that keeps him up at night, and this concern is evident in GE’s current advertising campaign featuring Owen, a new, young programmer/developer at GE.
Have you seen these commercials? There are a couple different versions (one of which you can view below) but the message in each is clear: Young people, come work at GE. The work you’ll be doing here will transform the way the world works.
Jewelry does not have its own Owen, but that does not mean the industry’s organizations are ignorant of the need to attract young talent.
The Diamond Council of America, MJSA, the Independent Jewelers Organization, the American Gem Society, the International Colored Gemstone Association and U.S. Antique Shows, which just crowned its first “Antique Young Gun” this past weekend, all are working to pique the next generation’s interest in jewelry. Our associate editor, Brecken, profiled their efforts in our last digital magazine.
It’s not a BBDO-created national advertising campaign on the same scale as GE’s Owen. But, it is a step in the right direction, and it addresses one of the problems impacting the incredible shrinking jewelry industry.
More on Editors
The Latest
MajorsDec 24, 2024
Boucheron Bets on Las VegasThe brand has opened its second U.S. location in the Fontainebleau resort and casino.
SourcingDec 24, 2024
Gemfields to Temporarily Suspend Emerald MiningThe move is one of several cost-cutting measures outlined by the company as it faces a weaker luxury market and other challenges.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
IndependentsDec 23, 2024
Philadelphia 76ers’ Tyrese Maxey Stars in The 1916 Company’s New CampaignThe retailer’s “On the Clock” campaign celebrates how time, precision, and purpose come together.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
GradingDec 23, 2024
GIA Adds Filler Identification to Emerald ReportsLab clients have the option to request this addition on their emerald reports.
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
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.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-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.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe 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.
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.”
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe 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.
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.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
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.
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.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
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.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
