Independents

Jewelry Business Closures Pick Up in Q2

IndependentsAug 11, 2016

Jewelry Business Closures Pick Up in Q2

The number of jewelers, wholesalers and manufacturers that ceased operations totaled 442, up from 335 in Q1 and more than double the number seen in Q2 2015.

Warwick, R.I.--The pace of closings in the jewelry industry increased considerably in the second quarter, the latest data from the Jewelers Board of Trade shows.

The industry saw 442 jewelers, wholesalers and manufacturers in the United States and Canada cease operations in the second quarter, up from 335 in the first quarter and more than double the number of closures seen in the second quarter 2015.

So far this year, 577 jewelers have decided to close up shop, which is a 55 percent increase over the first two quarters of 2015.

The number of wholesalers and manufacturers that have shut down also is up this year.

Wholesale closings rose from 68 to 121 while manufacturer closings tripled, increasing from 26 at this point last year to 79 this year.

The reasons for the continued closures, which began in earnest in 2014, have been well documented.

Baby boomer-generation jewelry store owners are aging and many don’t have family interested in taking over the store. Retail has changed and there are fewer physical retail stores across the board, not just in the jewelry industry. The economic recovery has been slow in the United States, and the middle class is shrinking.

Anthony Capuano, who succeeded Dione Kenyon as JBT president, said while the contraction of the industry is not new, he was taken aback by the spike in the number of businesses that ceased operations in the second quarter.

He said, however, that he does not expect the closures to continue at this rate for the rest of 2016, though they might spike again at the beginning of 2017 if the industry does not have a strong fourth quarter.

Other highlights from the JBT’s second quarter statistics include the following.
--Consolidations, defined as a sale or merger, numbered 21 in the second quarter, compared with 53 in the first quarter and 30 in the second quarter 2015. Year-to-date, consolidations total 74, up from 58 last year.

--Bankruptcies continue to drop. They’ve totaled four so far this year, compared to 16 at this point last year.

--There are now 21,541 retailers in North America, 20,666 excluding Canada; many of those are independent jewelers.

While Capuano acknowledged that it is shrinking, he does not see the number of independent jewelers contracting as severely as, for example, the number of independently owned hardware stores because of the personal nature of the business. “There is a place for the independent retailer who caters

to a local market, knows what their market wants, can be adaptable and present an enjoyable, meaningful shopping experience,” he said.

He would not, however, hazard a guess as to where the number will bottom out.

--Both the number of claims placed with the JBT and the average claims amount are down year-over-year. Year-to-date, there have been 521 claims, compared with 593 at this point last year. The average claim amount has dropped from $8,728 to $7,288.

--The number of new jewelry businesses in the United States and Canada is up about 3 percent year-to-date, from 152 last year to 156 this year.

--There were slightly more increases in JBT ratings (1,413) than decreases (1,393) in the second quarter and year-to-date (3,092 vs. 3,035, respectively). “People who can pay their bills are still paying their bills,” Capuano said.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

gia-topimage 0325.jpg
Brought to you by
A Brilliant Future Is Here

Get online education from GIA experts.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

Athena Calderone x John Hardy Collection
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired Collection

Interior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.

Movado Connect 2.0 watches
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs Impact

During a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.

Natural Diamond Council Diamond Learning Center Graphic
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning Center

The free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.

Jewelers of America logo
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from Members

The feedback will be used to prepare other jewelers for the challenges ahead, the organization said.

×

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