EditorsApr 15, 2025
Tariffs: What We Know Right Now Editor-in-Chief Michelle Graff answers questions about how the new taxes levied on countries like India and China will impact the industry.
SurveysOct 26, 2020
5 Industry Observations Based on the Latest JBT Data
Jewelers Board of Trade President Erich Jacobs talked with National Jeweler about continuing trends in the jewelry industry, a K-shaped recovery and his expectations for Q4.
A total of 55 jewelry businesses closed in the third quarter, Jewelers Board of Trade data shows, bringing the total for the year to 399. That’s less than last year, but the drop doesn’t tell the whole story of 2020, JBT President Erich Jacobs said.
New York—The Jewelers Board of Trade’s data for the third quarter is out, and it shows that not much has changed from Q2.
COVID-19 has created an environment of uncertainty, leaving business owners unsure what to do next and making it difficult to make predictions about the fourth quarter, traditionally the most important period of the year for retailers.
Last week, National Jeweler caught up with JBT President Erich Jacobs (virtually, of course) to talk more about these unknowns and how they impacted the industry in Q3, as well as what he expects in Q4.
1) Business discontinuances stayed low in Q3.
In the U.S. in the third quarter, 55 jewelry businesses closed, bringing the total to 399 for the year. That is down 11 percent from last year, when 450 businesses had shuttered by this point.
Among retailers, closures have totaled 325 so far in 2020, down 10 percent year-over-year.
Jacobs said the fact that fewer businesses are closing this year is not an indicator that the industry is healthier.
It is, instead, a continuation of what started in Q2.
The “unique” economic environment is keeping some businesses from formally closing even if that is where they are headed, he said. And it is making it difficult for the JBT to distinguish between temporarily and permanently closed businesses.
Some might be considering a going-out-of-business sale but don’t want to run one in this environment, while other stores are hanging on, waiting to see if they can recover from decreased business during the pandemic.
Still others are getting rent breaks from their landlord, who know they won’t be able to fill the space right now anyway, but won’t be able to stay open long term.
The unprecedented nature of 2020 also is impacting the number of bankruptcies and consolidations, as courts are moving more slowly than usual, and companies remain hesitant to make deals in an uncertain environment.
There were 37 consolidations (sales and mergers) among U.S. jewelry businesses in Q3, bringing the total for the year to 93. That is down 27 percent from 2019.
Bankruptcies totaled 101 in Q3 and have hit 514 for the year, a 14 percent year-over-year drop.
2) K marks the spot.
Jacobs said JBT subscribes to the philosophy that the economic recovery is K-shaped.
In a K-shaped recovery, the wealthiest Americans are rebounding; some are even doing better
than they were before the virus. They are the top leg of the K.
Middle- and lower-income Americans, meanwhile, are hurting; they are the lower leg of the K.
Jacobs said he sees some parallels in the jewelry industry.
There are some stores that are having “banner years,” as some of the disposable income not being spent on travel gravitates to fine jewelry, while others are saying this is their worst year ever.
3) Businesses that didn’t build up their online presence are paying.
To better understand the differences between the businesses on the upper and lower legs of the K, JBT conducted a brief, informal study.
The staff examined posts on social media and other industry platforms to order to identify commonalities among the stores that report they are doing well, as well as the similarities among stores that aren’t.
Among the stores having a rough year, there was a bold through line.
“Those who were struggling had zero online presence,” Jacobs said, meaning they lacked both e-commerce capability and a sizable social media following.
“Everyone that was struggling had neither of those. That was the common factor.”
4) Not surprisingly, there still aren’t a ton of people rushing to open businesses in 2020.
The number of new retailers, wholesalers and manufacturers listed by the JBT is down significantly this year.
So far this year in the U.S., JBT data shows a total of 112 new jewelry businesses have opened, including 42 in the third quarter. That is a 40 percent drop from this point last year, when there were 186 new businesses, including 61 in Q3.
Overall, the size of the industry continues to shrink.
The total number of jewelry businesses in the U.S., as listed by JBT, stands at 24,258, including 18,375 retailers, both down 3 percent year-over-year.
Including Canada, the total is 25,573, down 3 percent from 26,344 at this point in 2019.
5) The holiday season is a big question mark.
“Q4 is the great unknown,” said Jacobs.
As of this writing, the COVID-19 infection rate is rising and the presidential election has yet to be decided, as has the fate of a second stimulus package.
Late last month, the National Retail Federation was among the more than 200 trade associations that sent a letter to Congress advocating for passage of additional pandemic relief for consumers and businesses.
Jacobs also noted that a stimulus could be a boost for retailers this holiday season.
“The stimulus might be a driver for consumer confidence, which in turn can be a driver for discretionary purchases,” he said.
More on Surveys
The Latest
EditorsApr 15, 2025
Q&A: Bogolo Joy Kenewendo on Making Deals, Marketing DiamondsKenewendo, Botswana’s minster of minerals and energy, discusses closing the deal with De Beers and the work that was missed along the way.
AuctionsApr 15, 2025
23-Carat ‘Golconda Blue’ Heads to AuctionThe historic fancy vivid blue diamond set to headline Christie’s Geneva sale next month could sell for up to $50 million.
FinancialsApr 15, 2025
LVMH’s Q1 Sales Slip 2 PercentLVMH CFO Cécile Cabanis also discussed the effects of tariffs so far.
Weekly QuizApr 11, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeApr 15, 2025
Jon Hamm Plays a Jewel Thief on Apple TV+The “Mad Men” and “The Morning Show” star steals jewelry, art, and handbags from his wealthy neighbors in “Your Friends & Neighbors.”
SourcingApr 15, 2025
Diamond Club West Coast Names 2025 BoardThe organization has reelected Kalpesh Jhaveri as president.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
FinancialsApr 14, 2025
Movado to Restate Years of Financials Due to ‘Misconduct’ in Dubai An investigation found that the former managing director of Movado’s Dubai branch overstated and prematurely recorded sales.
CollectionsApr 14, 2025
Sauer Embraces Emptiness Through ‘Ma’ CollectionThe collection pays tribute to the Japanese philosophy of Ma, studying balance, stillness, and the interplay between presence and absence.
IndependentsApr 14, 2025
Illinois Jeweler Closing After 45 YearsMari Lou’s Fine Jewelry in Orland Park, a suburb of Chicago, is closing its doors.
GradingApr 14, 2025
GIA Expands Overseas Services as Tariffs Kick InGIA’s labs in Dubai and Hong Kong are now accepting larger diamonds in light of the “logistical challenges” presented by the new tariffs.
AuctionsApr 11, 2025
Piece of the Week: A Replica of Princess Grace’s Wedding EarringsThese earrings by Van Cleef & Arpels, featuring the same design as a pair worn by Princess Grace, are up for auction at Woolley & Wallis.
Recorded WebinarsApr 11, 2025
Watch: Top Tips for Saving Time With AITwo experts share how artificial intelligence tools can help retailers run a more efficient business.
SourcingApr 11, 2025
Mikimoto Names New President, CEO for U.S. DivisionKentaro Nishimura, who has been with the pearl company since 1997, has been promoted to president and CEO of Mikimoto America.
WatchesApr 11, 2025
Bulova Documentary Now on Amazon Prime“America Telling Time: 150 Years of Bulova” explores the storied history of the American watchmaker.
Policies & IssuesApr 10, 2025
Trump Presses Pause on Higher Tariffs for 90 DaysAn across-the-board tariff of 10 percent remains in place for all U.S. trading partners, except China.
MajorsApr 10, 2025
Brilliant Earth Taps Influencers, Their Moms for Mother’s Day CampaignBrigette Pheloung and Tania Sarin, and their mothers, star in the campaign wearing medallions they co-designed.
MajorsApr 10, 2025
Pary LeVian, Matriarch of the LeVian Family, Dies at 96LeVian is remembered for her unwavering commitment to her family, community, and helping others.
Events & AwardsApr 10, 2025
Hamptons Jewelry Show to Debut This SummerThe retail show is open to the public and will run July 24-27.
MajorsApr 09, 2025
Tiffany & Co. Opens Flagship in BrazilThe new store in the upscale Iguatemi São Paulo mall is the storied brand’s first flagship in Brazil.
AuctionsApr 09, 2025
Bonhams to Offer Selection of Chaumet JewelsThe pieces span from the Art Deco period to the 1970s and will go up for auction at the Paris Jewels sale later this month.
MajorsApr 09, 2025
Pandora Names Tyla as Its New Brand AmbassadorThe Grammy-winning singer-songwriter, who is set to perform at Coachella this month, also debuted a curated selection from the brand.
WatchesApr 08, 2025
Here Are the New Rolex Watches for 2025The introductions include the Land-Dweller, Rolex’s first new model since 2012, as well as several new dials for its classic timepieces.
MajorsApr 08, 2025
Willis Cowlishaw, Zale Executive and Mentor to Many, Dies at 98Cowlishaw earned a degree in horology after serving in World War II, working at one of the first Zales stores in Tulsa, Oklahoma.
AuctionsApr 07, 2025
182-Carat Paraíba-Type Tourmaline Heading to Auction in Hong KongBonhams will offer the “Kat Florence Lumina” at its May 22 jewelry auction.
