IDEX Online Research: More Jewelry Stores Open for 2011 Holiday Selling Season
November 07, 11Further, this is the first year since 1995 – the first time in more than 16 years – that the number of active specialty jewelers is expected to rise in the American market, based on annual figures.
Number of Specialty Jewelers on the Rise
At the end of September – the third calendar quarter – there were 22,278 specialty jewelers in the
It is important to note that the Jewelers Board of Trade counts a chain as one firm. For example, Kay Jewelers, which operates nearly 1,000 stores, is counted as one firm by the JBT.
Based on the JBT data, it is likely that there will be at least 24,500 stores in operation during the upcoming 2011 Holiday Selling Season, or about 300 more stores than last year.
These statistics are good news for the American specialty jewelry industry, since it has been losing market share to other merchants – primarily multi-line discounters – who sell jewelry.
Encouraging Trends for Specialty Jewelers
There are several encouraging trends for the
· The number of specialty jewelers in operation generally follows economic cycles. When the economy is in a growth mode – even at today’s anemic growth rate – the number of jewelers opening stores generally outpaces closures. When the economy is softening, more jewelers close stores than open them.
· From a financial viewpoint, specialty jewelers’ financial strength appears to be improving, based on these Jewelers Board of Trade statistics for the first nine months of 2011 versus the same period a year ago:
o The number of claims by jewelry suppliers for unpaid invoices against jewelry retailers has declined.
o The size of the average jewelry supplier’s claim against a specialty jeweler for unpaid bills is down nearly 10 percent this year: $6,676 this year versus $7,797 last year for the first three quarters.
o The number of jewelers who have ceased operations is smaller this year than in 2010.
o The number of specialty jewelers who have declared bankruptcy is down by 30 percent. At the end of the third quarter of 2010, about 50 jewelers had declared bankruptcy; this year, only 35 firms had gone bankrupt by the end of the third quarter.
o The ratio of Jewelers Board of Trade credit rating increases versus decreases has improved. The Jewelers Board of Trade has issued roughly 1.2 credit rating increases for each credit rating decrease this year; last year, the ratio was about 1-to-1.
Specialty Jewelry Industry Statistics Positive
The following table summarizes the Jewelers Board of Trade census statistics for the American jewelry market. JBT counts a firm as “one,” even if it operates multiple locations. This is different from similar government statistics which count each store or manufacturing location.
Jewelers Board of Trade Census Data Third Quarter 2011 vs Third Quarter 2010 | |||
Category | 3Q 2010 | 3Q 2011 | percent Change |
Retailers | 22,101 | 22,278 | +0.8% |
Wholesalers | 4,281 | 4,301 | +0.5% |
Manufacturers | 3,185 | 3,185 | - 0 - |