G.A. Wright is preparing to release the 2015 Retail Trends Report. Here is a sneak peak on our Retail Trends overview and forecast for the jewelry sector.
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Trends in Retail- Jewelry Stores
The jewelry business has historically been dominated by local stores. This is beginning to change as larger retailers like Tiffany & Co. have increased market share. This trend is expected to continue with some contraction in the number of small specialty jewelers. But, certainly there is still a large market for the strong, local, independent store.
Another trend is an increase in sales of branded jewelry. Those with new wealth want to show it off with products like Rolex watches or Cartier. Newer entrants to the branded jewelry business are Michael Kors watches, Pandora and David Yurman jewelry. We see stores where these are the best-selling brands. Pricing on the high end allows reasonable margins while lower priced jewelry is very competitive.
Consumers are mixing fine jewelry and fashion jewelry. Stores are faced with the choice of being traditional fine jewelry stores or merchandising fashion jewelry. Either approach can make sense but it’s important to take a stand and adjust marketing accordingly.
The recession has taken its toll on the business with increases in store closings. Last Christmas season was especially bad for many jewelers.
Demographics currently favor branded jewelry and large stores. Purchases by the wealthier Baby Boom Generation are declining, the following generation is smaller and the Millennial Generation has not reached peak earning years where they can afford the most expensive products or custom designed jewelry.
Small specialty retailers, however, still have a place and can develop a profitable niche with the highest quality products and exceptional service.
Please watch this Jewelry Store Owner talk about his Sale with G.A Wright and results achieved.