Jewelry Boom Ends
Many of our clients, as well as, other industry decision-makers are understandably worried about the probable effects of this period of economic instability on jewelry retailing. Our second issue of Retail Jewelry Insights™ is devoted to gaining a perspective on the root causes of our economic problems, the short term consequences, and the likely challenges facing jewelers as the economy is rebuilt.
Jewelry Sales Declining
It now appears that about one in three sales volumes of specialty jewelry stores could decline by at least 20% in December 2008. That’s the conclusion drawn after reviewing 3rd quarter sales trends, competitive pricing, retail bankruptcies, and commodity price movement.
During the last economic slow down, specialty jewelry sales declined 1 percent in November and a whopping 7.5% in December. That was in 2001 following the September 11th attack on the World Trade Center and the Pentagon. Now, seven years later, the economy is in much worse condition. Now the nation is in the grip of a recession. How bad could it get for jewelers this fall?
