Surveys

The Industry Shrank by 4% Last Year, JBT Data Shows

SurveysJan 25, 2019

The Industry Shrank by 4% Last Year, JBT Data Shows

A healthy number of new jewelry businesses opened in North America in 2018, but not enough to offset the number of companies that closed.

Warwick, R.I.—A healthy number of new jewelry businesses opened in North America in 2018, but not enough to offset the number of companies—whether retail, wholesale or manufacturing—that closed, year-end data from the Jewelers Board of Trade shows.

The result is that the industry continued to get smaller, a trend JBT President Richard Weisenfeld said will continue for the foreseeable future, particularly among retailers.

“There is going to be a steady decrease in the number of jewelers,” he said in an interview Thursday. “As that slows down over the course of the next decade, I think what we’ll be left with in the jewelry industry is well-managed stores and well-placed manufacturers that produce the right product for the right price.”

At the end of 2018, the JBT’s listings for jewelry retailers, wholesalers and manufacturers in North America totaled 26,365, a 4 percent drop from 27,551 in 2017.

The number of retailers was down by the same percentage, shrinking from 20,757 to 19,906.

In tracking businesses exiting the industry, the JBT breaks down what it refers to as jewelry business “discontinuances” into three categories: businesses that ceased operations (closed), consolidated via a sale or merger, or filed for bankruptcy.

While the JBT saw a dramatic spike in bankruptcies during the Great Recession, the story the past few years has been jewelers closing their stores, and that continued in 2018.

JBT data shows that 738 retailers closed in North America last year, a 5 percent increase from the 706 who closed in 2017.

The United States lost 706 retailers, up 4 percent from 678 in 2017.

The region of the U.S. with the most retail closures was the Southeast at 202, followed by the Northeast (162) and the Southwest at 117.

The Northwest recorded the fewest number of jewelry store shutdowns (21), though it should be noted that regional trends for store closures do, to an extent, correlate to population; there are more closures in regions where there are more people and, therefore, more stores to begin with.

In the JBT’s regional breakdown, the Northwest includes some of the country’s most sparsely populated states, such as Alaska, Montana and Wyoming, while the Southeast and Northeast include some of the most crowded, states like Florida, New York and Pennsylvania.

Weisenfeld allowed that a portion of the industry shrinkage is attributable to the fact that not all new businesses are joining the JBT.

He

said there are probably thousands of small jewelry businesses out there that sell online, through social media and/or in non-traditional retail spaces, like showrooms and craft fairs, and conduct their business using credit cards or mobile payment systems like Venmo. They don’t see the need to join JBT.

However, he said, most of the industry shrinkage is due to the closure of traditional brick-and-mortar stores, which fall into two categories.

First, those are the stores that want to stay in business but are struggling due to factors such as having the wrong lines, being in a bad location or in an area with a shrinking population. Weisenfeld said they opt to do a going-out-of-business sale and set off in a different direction, or open a new store somewhere else.

Then those are those well-run operations with solid market share that carry better brands but have owners who are in their late 60s or early 70s and want to retire. Their children might help at the store, Weisenfeld said, but they don’t want to be the owners; they don’t like the hours or the income potential.

“It’s just not the lifestyle that kids want these days. The idea of being in a store six days a week … is just not what they are looking for.”

Jewelry business consolidations and bankruptcies—the other two forms of business discontinuances tracked by JBT—also rose slightly between 2017 and 2018.

There were 157 consolidations among retailers, wholesalers and manufacturers in North America in 2018, up from 151 the year before, and 34 bankruptcies, up from 29 in 2017.

New businesses in North America, meanwhile, totaled 230, up from 166 in 2017, a 39 percent increase.

In the U.S., there were 183 new retailers last year (up from 131 in 2017), 24 new wholesalers (up from 13) and 15 new manufacturers (up from 12).
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Weekly QuizMar 27, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

Bailey’s Fine Jewelry storefront
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent Jeweler

The family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.

Bulova 150 Art Deco Miss America Watch, 150 Art Deco Pocket Watch
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco Watches

The “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.

Alex Wellen
MajorsMar 26, 2025
QVC Group Appoints New President

Alex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.

Jewelers of America’s new logo
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative

The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.

Christies regent kashmir sapphire and regal Burmese ruby
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat Ruby

The ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.

Diamond earrings held in gloved hand
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft Recovered

The two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.

Emmanuel Raheb CEO of Smart Age Solutions
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More Jewelry

The time to start experimenting with video content is now, writes columnist Emmanuel Raheb.

Pomellato Nudo High Jewelry Campaign
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic Design

From striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.

Jamie Singleton, Bill Brace, Rebecca Wooters, Bill Luth
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid Turnaround

The jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.

Sothebys Watchcheck
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair Services

The auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it 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