"Be a Winner”
Despite the Recession-Part IV
This issue of Retail Jewelry Insights™ is Part IV of a four part series focused on the long term consequences of the recession on retail jewelers and how jewelers can reposition their businesses for greater success in 2009...
Part IV: Competitive Analysis and Optimizing Business Performance
Don’t Take the Competition for Granted
Now that the economy is in recession, it’s no longer business as usual. So expect the unexpected from competitors. Jewelers that never discounted may begin to do so now to drive day to day business, as well as, increase sales during events like Valentines Day and Mother’s Day. For some, the discounts may not be advertised as much as they are offered more frequently over the counter. For others, the discounting may be advertised in store and in the media too.
This year the National Retail Federation predicts that general merchandise sales will decline by 2.5% for the first half. Rosalind Wells, NRF economists, said in January, “I don't think I would forecast luxury goods sales to be very good this year. Everyone is being hurt by this recession, the people who shopped in luxury goods stores as well as everybody else." So both jewelry and non-jewelry competitors will probably be much more promotional. The point, as the size of the discretionary sales market contracts, every retailer is looking to steal the others market share and don’t think your business will be insulated from it...
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