CrimeJan 02, 2025
Rolex Sale That Went South Led to Murder of Florida Jeweler, Report SaysJeweler Anthony D’Amore was found dead inside his office Dec. 23, marking the fourth jeweler killed on the job in 2024, according to JSA.
IndependentsMar 31, 2020
On Data: The Questions You Need to Ask About CARES
In another special edition of On Data, Sherry Smith says jewelers need to consult their team of experts about the Coronavirus Aid, Relief and Economic Security Act.
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
The first confirmed coronavirus case in the United States was reported on March 5.
Although we are less than 30 days into this pandemic in the U.S., the numbers are staggering—more than 120,000 confirmed cases and over 2,000 deaths as of Monday, the World Health Organization reports.
We now lead the world in total number of cases.
We’ve never been here before, battling a nationwide pandemic and facing so much uncertainty.
We know we will come out of this; we just aren’t sure when or what that might look like, as many of us will be adjusting to a new normal.
In the meantime, though, it is critical—and I know you’ve heard me say this before and I make no apologies for saying it again—but we must focus on what we can control.
So in this column, I’d like to address the multiple stimulus packages and relief programs available to all of us as it relates to our employees.
RELATED CONTENT: 5 Things Retailers Should Know About the Stimulus Bill
Last week, Congress passed a third stimulus package, which has allocated an additional $350 billion to small businesses and $150 billion for state and local stimulus finds. There are also provisions in the bill that will temporarily allow small businesses to claim deductions using today’s losses against past profits to claim quick refunds for cash infusions.
RELATED CONTENT: 5 Things Retailers Should Know About the Stimulus Bill
Last week, Congress passed a third stimulus package, which has allocated an additional $350 billion to small businesses and $150 billion for state and local stimulus finds. There are also provisions in the bill that will temporarily allow small businesses to claim deductions using today’s losses against past profits to claim quick refunds for cash infusions.
There’s no doubt that it can be overwhelming trying to understand and decode all the information relevant to your business in the $2 trillion stimulus package, otherwise known as the CARES (Coronavirus Aid, Relief and Economic Security) Act.
Therefore, you must rely on your corporate attorney, certified public account and, if you utilize one, your payroll company.
Remember their roles require a complete understanding of the legalities and the nuances associated with all the stimulus packages. This is precisely what you pay them for.
In fact, it’s so easy to misinterpret and/or misunderstand how some of these programs will work that I urge you to avoid taking any action until you have spoken to your experts.
You simply can’t afford costly missteps.
Start by assessing your current financial situation. What does that look like?
Define your objective, which now for many of our retailers is about sustainability. What does that look like? Am I able to be self-reliant, or do I need assistance? Perhaps it’s a combination of both, depending on
how long little to no revenue will be coming in.
Then set aside 15 to 30 minutes to create a list of questions for your team of experts.
It’s important to understand all your options when it comes to your employees and the potential legal ramifications.
A sample list of questions might look like this.
1) Am I obligated to give my employees paid leave?
1a) Does this apply to all businesses, or are small businesses exempt?
2) If I offer paid leave to my current employees, will I be fully reimbursed?
3) Is it smart to take out a loan, given the low interest rates, in order to keep my employees on paid leave?
4) What advantages and disadvantages are there between paid leave versus layoffs?
5) If I am reimbursed, how quickly will those funds come through?
6) What form will the reimbursement take, cash or tax credits?
7) If part of the reimbursement is via tax credits, when would those be realized?
8) If I lay off my employees, am I obligated to pay them their PTO (personal time off) time first?
9) If I take out a loan to use for payroll expenses, is loan forgiveness a guarantee?
10) If not, what options do I have?
11) Is there anything I have overlooked?
1a) Does this apply to all businesses, or are small businesses exempt?
2) If I offer paid leave to my current employees, will I be fully reimbursed?
3) Is it smart to take out a loan, given the low interest rates, in order to keep my employees on paid leave?
4) What advantages and disadvantages are there between paid leave versus layoffs?
5) If I am reimbursed, how quickly will those funds come through?
6) What form will the reimbursement take, cash or tax credits?
7) If part of the reimbursement is via tax credits, when would those be realized?
8) If I lay off my employees, am I obligated to pay them their PTO (personal time off) time first?
9) If I take out a loan to use for payroll expenses, is loan forgiveness a guarantee?
10) If not, what options do I have?
11) Is there anything I have overlooked?
Let me give an example of why it’s so important to do this exercise.
This excerpt is from a CNBC article published last Thursday and, yes, quickly updated the next day.
“Under the CARES Act, the loans can be for as much as 2.5 times payroll or $10 million, whichever is less. Payments can be deferred by up to a year, and businesses will be able to apply for forgiveness of the loan (or a portion of it) based on the amount used during the eight weeks following loan approval. Any amount not forgiven would have a maximum interest rate of 4 percent.”
I want to use this example because I’ve had many retailers debate keeping their employees on paid leave vs. unpaid leave because some are convinced they will be fully reimbursed.
Well, that’s simply not guaranteed. Look at the language above. While your payments could be deferred for up to a year, which would be very helpful, you will still have to apply for a forgiveness of the loan.
And, all or part of it may be forgiven, while the unforgiven portion would have a maximum interest rate of 4 percent.
One can easily see how this one paragraph could be subject to multiple interpretations.
The potential costly part to the retailer is that many of them would have to take a loan in order to grant paid leave. That’s a loan that might not be fully forgiven, which means you’ve taken on additional debt that you’ll have to pay back.
There is another article, also published last Thursday, from The New York Times that states payroll expenses would be fully covered, but there is a timeline in which you have to use those funds.
The bottom line is: There simply is no one right answer for all retailers, which is why you want to consider all the facts and ultimately make the decision that is in the best interest of your business.
Given how rapidly things are changing, you can understand why it’s imperative to rely on your team of experts. Utilize them! They will ensure you understand the impact of your chosen course of action.
At the end of the day, we all want to be standing on the other side of this pandemic.
Be well and stay healthy!
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. In her role, Smith works with wholesalers, brands and retail stores on business mentoring, and data analysis and aggregation. She can be reached at sherry@edgeretailacademy.com.
More on Independents
The Latest
WatchesJan 02, 2025
Ben Bridge Opens Tudor Boutique in HonoluluThe opening marks Tudor’s first location in Hawaii.
SourcingJan 02, 2025
Gemfields Resumes Ruby Mining in MozambiqueThe miner temporarily halted operations on Dec. 24 following an invasion at the mine.
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.’
TrendsJan 02, 2025
Amanda’s Style File: New Year, New Jewels Set the tone for 2025 and commemorate the year gone by with glamorous jewelry fit for celebration.
Weekly QuizDec 27, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsDec 30, 2024
Saks Global Finalizes Acquisition of Neiman MarcusThe retailer’s portfolio now includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks Off 5th.
Events & AwardsDec 30, 2024
Registration Now Open for JIS Spring 2025The jewelry trade show is set for March 9-11 in Miami.
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.
MajorsDec 27, 2024
Buccellati to Expand Workforce by 500 Employees Over Next Three YearsThe Richemont-owned company is investing in its jewelry production and watchmaking workshops.
SourcingDec 27, 2024
IDCA Announces 2025 Board MembersManoj Bhandari, a principal of RMC Gems Inc., is the new president of the Indian Diamond & Colorstone Association.
Events & AwardsDec 27, 2024
18 Designers Graduate from WJA’s Jewelry Loupe ProjectThe designers participated in a six-month business development and mentorship program to develop and launch their jewelry collections.
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.
MajorsDec 24, 2024
Boucheron Bets on Las VegasThe brand has opened its second U.S. location in the Fontainebleau resort and casino.
EditorsDec 24, 2024
The Spectrum Jewels I Want to Find Under the Tree Associate Editor Lauren McLemore highlights pieces from the AGTA Spectrum & Cutting Edge Awards she’d be thrilled to unwrap on Christmas.
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.
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.
EditorsDec 23, 2024
My Favorite Piece of the Week Jewels of 2024Associate Editor Natalie Francisco chose her 12 favorite Piece of the Week picks from the year gone by.
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.
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.
