Managing Extreme Uncertainty
Part II: Economic Uncertainty
One day increasing the next day decreasing, jewelry storeowners are facing a level of economic volatility and commodity uncertainty never experienced in the last six decades. Not since the period between the Great Depression and end of the Second World War, an interval of 15 years, have jewelry storeowners had to deal with such a degree of change in the economy and never before in the context of the vitriol permeating the country’s social and political institutions. This issue of Retail Jewelry Insights is a 2-Part Series. Part I will focus on (a) the volatility in the gold and diamond markets; and Part II on (b) the uncertainty in the economy
The Economy is a Game Changer
Just when jewelry storeowners thought things were getting better, the economy stalls, raising the question whether year-to-date sales gains will be wiped out. Inflationary driven, jewelry store sales began to increase precipitously in March as large chains like Zale and Signet signaled that companies would be adjusting prices to reflect higher replacement costs for gold and diamonds for 2010 purchases. The industry followed, increasing prices that have been the driving force behind the extraordinary sales increases since March 2010.
