Retailing is primarily "event selling" –
that is, seasonal events during the year
create peaks of consumer demand.
For example, the seasonal events of
Christmas, Hanukkah, and Kwanzaa
create a retail sales surge for all
retailers in the November-December
period. For jewelers, this is the most
important selling season of the year.
Jewelers generate about 33 percent
of their annual sales in the November-
December holiday period versus
typical retail merchants such as
discounters, department stores, and
specialty merchants, which generate
about 24 percent of their annual sales
in this two-month period. As the graph
at right illustrates, months with a major
event or holiday – Valentine’s Day,
Mother’s Day, and Christmas –
generate particularly strong sales for
U.S. jewelers.
HOLIDAY SHOPPERS – Americans Love Diamonds
Source: Jewelers of America |
It will be a “white Christmas” for many consumers since more diamond jewelry is sold in November and December than at any other time of year. Diamond jewelry – necklaces, bracelets, rings – are particularly popular. Further, while most weddings take place in the summer, nearly 20 percent of all brides become engaged in December, resulting in a surge of demand for engagement rings in the final months of the year. Specialty jewelers generate up to 40 percent of their sales from bridal-related jewelry.
Source: Jewelry Industry Research Institute |
HOLIDAY
SHOPPERS – Loyal to Specialty Jewelers
About 60 percent of all U.S. shoppers will buy their fine jewelry from specialty jewelers – either independents or chain merchants such as Kay and Zale. There are nearly 28,000 specialty jewelers in the U.S. operating just under 41,000 stores. Department stores specialize in fashion jewelry. Discounters typically specialize in popular-priced jewelry. IDEX Online Research will provide a list of the top U.S. jewelers upon request.
ONLINE SHOPPING – A Growing Sales Channel for Jewelers
Source: IDEX Online Research |
While online sales represent just over 2 percent of total U.S. retail sales, a significant level of jewelry sales are made via the Internet. In 2005, IDEX Online Research estimates that about 3.5 percent of all U.S. jewelry (by value) was sold by online merchants including Blue Nile and others as well as by store-based merchants with websites such as Tiffany & Company. IDEX Online Research estimates that more than 70 percent of all jewelry-related online sales are loose diamonds and diamond jewelry.
IDEX Online RESEARCH – Providing Jewelry Industry Research & Analysis
As a division of IDEX Online, which produces real-time, transparent, unbiased pricing information for the global diamond industry, IDEX Online Research provides market research and analysis for the world’s jewelry industry. IDEX Online Research can be accessed at www.idexonline.com.
Additional Information Is Available Upon Request
Ken Gassman, IDEX Research, Richmond, VA, +1-804-347-2395 research at idexonline dot com
Additional information about the U.S. retail market and holiday sales can be found in the National Retail Federation’s Holiday Survival Kit for the press, www.nrf.com.
