Making a Sales Increase a Reality

In all likelihood, just about half of the jewelers in the US will achieve a sales increase during the second half of 2009, while the other half will watch sales decline.  Will you be one of the winners?  The fact is getting a sales increase isn’t a matter of luck.  Rather it’s all about realistic preparation. 

This issue of Retail Jewelry Insights™ will highlight key factors influencing consumer spending, sales planning considerations, and tactics for increasing sales during the fourth quarter of 2009.

Is Business Getting Better?
After plummeting by more than 16% in November-December, jewelry sales declines appear to have bottomed out, at least for the time being.  Signet Jewelers, owner of Kay and Jared brands, said store for store sales had declined about 2.9% during the first quarter of 2009.  In contrast, Zale posted a 20% decline, but that was in the face of strong comparatives and lower margins last year.

Blue Nile and Tiffany reported sales declined about 11% and 22% respectively, suggesting high-end jewelry consumers were continuing to buy cautiously.  Still, their current declines were an improvement over the 25% to 35% decreases many luxury jewelers suffered during last year’s holiday season.

Is the economy improving or is the improvement just an adjustment because consumers over reacted...