Toxic Inventory Threatens Jewelers

Inventory, Inventory, Everywhere!
Probably no other area of management separates jewelry retailers from the rest of retailing than inventory management.  Characterized in general by low turnover and high margin, jewelers usually carry about 12 months of inventory at a selling price which is materially higher than almost every other segment of retailing.  For instance, department and specialty apparel stores typically turn their inventory about 4 to 5 times a year, while food stores often turn their inventory once a week. 

Why the jewelry business requires so much more inventory than other types of retailing has been a topic debated for years by analysts and jewelers alike without resolution. However, one thing most jewelry retailers agree on is that there is too much inventory chasing too few customers in the industry today, especially at the store level...