Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
SurveysApr 30, 2018
Store Closures Continue, But Openings Pick Up
For the first time in a long time, JBT data shows an uptick in the number of new jewelry businesses in the U.S.
JBT data for Q1 shows that the number of retailers, wholesalers and manufacturers that opened in the U.S. rose to 62 in Q1, up from 46 last year. Of those 62 new businesses, 45 were retailers.
New York—For the first time in a long time, the Jewelers Board of Trade’s quarterly data showed an uptick in the number of new jewelry businesses in the United States.
It was a small increase, and the slow, steady reduction in the overall number of retailers, manufacturers and wholesalers in North America continues.
The JBT’s number of total listings for the U.S. was 25,667 at the end of the first quarter, down 4 percent year-over-year. Counting Canada, total listings stand at 26,903.
But as new JBT President Richard Weisenfeld pointed out Friday, the rate of closures remains lower than what it was in the post-recession spike of 2014-2016.
“It seems like the shrinkage has slowed a little,” he said. “It will be interesting to see if that continues.”
In addition, preliminary results indicate jewelry sales are up so far in 2018, he said, meaning better results for the retailers that remain.
Closings and Openings
The number of U.S. jewelry businesses—meaning retailers, wholesalers and manufacturers—that closed in the first quarter totaled 288, up slightly (4 percent) from 277 in the same period last year.
Among retailers, closings numbered 241, an 11 percent increase from 217 in the same period last year.
The continuing closure of jewelry stores is not happening in a vacuum but, rather, against a backdrop of changes in a market that is “over-stored” for the digital age. The U.S. has about 24 square feet of retail space per capita, compared with, for example, about 5 square feet in the E.U., according to a recent report from PricewaterhouseCoopers LLP.
Signet is set to close a net of about 165 stores this year, yes, but they are not alone.
Macy’s, Sears, Sam’s Club, GNC and Foot Locker are among the dozens of retailers that have announced plans to shutter locations nationwide, and some major retailers are exiting the market entirely. After creating generations of Toys “R” Us kids, the retailer is going out of business, as is department store chain Bon-Ton.
“There’s still going to be a lot of stores closing,” Weisenfeld said. “(But) it’s not just the jewelry business; it’s every business.”
Jewelry business consolidation and bankruptcies also were up in the U.S. in Q1.
Consolidations (meaning a sale or merger) among retailers, wholesalers and manufacturers totaled 45, up from 34 in the same period last year, and bankruptcies increased from 318 to 343.
JBT data shows a similar pattern in Canada: business closings were up from 15
Editors' Picks
Sponsored by
to 22, mergers rose from one to three, and bankruptcies increased from 16 to 25.
While businesses continue to close, merge or file for bankruptcy, there also was a relatively significant increase in the number of new businesses to start the year.
The number of retailers, wholesalers and manufacturers that opened in the U.S. rose to 62 in Q1, up from 46 last year. Of those, 45 were retailers, compared with 37 in the same period last year.
That is a 35 percent increase, though it should be noted that overall, 62 is still a small number of business openings.
Shifts in the Southeast
Of those 45 new retailers, nearly half—21—set up shop in the Southeast, which the JBT defines as a region of 11 states plus Puerto Rico and the U.S. Virgin Islands.
After the Southeast, the Northeast (eight) and Southwest (seven) had the highest number of store openings.
Interestingly, the Southeast also accounted for the greatest number of U.S. jewelry store closings in Q1. Of the 241 retailers that shut down, 83 of them (about one in three) were located there, followed by:
--41 in the Southwest (California, Nevada, Hawaii, Utah, Arizona);
--39 in the North Central (North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Wisconsin, Illinois, India, Ohio, Michigan);
--35 in the Northeast;
--33 in the South Central (Louisiana, Arkansas, Kansas, Oklahoma, Texas, Colorado, New Mexico, Missouri); and
--10 in the Northwest (Montana, Wyoming, Idaho, Washington, Oregon, Alaska).
When asked about the openings and closings in the Southeast, Weisenfeld said patterns in specific regions are difficult to explain, particularly in such a short period of time as a single quarter.
“As much as we try to figure out why, it’s sometimes inexplicable,” he said.
While businesses continue to close, merge or file for bankruptcy, there also was a relatively significant increase in the number of new businesses to start the year.
The number of retailers, wholesalers and manufacturers that opened in the U.S. rose to 62 in Q1, up from 46 last year. Of those, 45 were retailers, compared with 37 in the same period last year.
That is a 35 percent increase, though it should be noted that overall, 62 is still a small number of business openings.
Shifts in the Southeast
Of those 45 new retailers, nearly half—21—set up shop in the Southeast, which the JBT defines as a region of 11 states plus Puerto Rico and the U.S. Virgin Islands.
After the Southeast, the Northeast (eight) and Southwest (seven) had the highest number of store openings.
Interestingly, the Southeast also accounted for the greatest number of U.S. jewelry store closings in Q1. Of the 241 retailers that shut down, 83 of them (about one in three) were located there, followed by:
--41 in the Southwest (California, Nevada, Hawaii, Utah, Arizona);
--39 in the North Central (North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Wisconsin, Illinois, India, Ohio, Michigan);
--35 in the Northeast;
--33 in the South Central (Louisiana, Arkansas, Kansas, Oklahoma, Texas, Colorado, New Mexico, Missouri); and
--10 in the Northwest (Montana, Wyoming, Idaho, Washington, Oregon, Alaska).
When asked about the openings and closings in the Southeast, Weisenfeld said patterns in specific regions are difficult to explain, particularly in such a short period of time as a single quarter.
“As much as we try to figure out why, it’s sometimes inexplicable,” he said.
More on Surveys
The Latest
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
FinancialsApr 24, 2024
Kering’s Jewelry Brands a Bright Spot in Tough Q1The luxury titan posted declining sales, weighed down by Gucci’s poor performance.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
