Jewelry Business Guru by Cindy Edelstein

The Number of Jewelry stores closing this year is just on the high-side of normal

If the U.S. jewelry industry loses a net of 750 businesses this year, it would be at the high end of the typical range of the annual net shrinkage of specialty jewelry businesses. But this year's projected net shrinkage of jewelry industry retail capacity would not be a record loss, industry analyst Ken Gassman says in a report on nationaljeweler.com.

"Just under 400 U.S. retail specialty jewelers closed their doors in the first six months of 2009, up from about 300 closures in the same period a year ago, according to new data from the Jewelers Board of Trade (JBT).
 
However, jewelry store openings continue to offset these closings: 91 brave merchants decided to open a jewelry business in the first six months of 2009, despite the tough economy. This is almost in line with the 96 new openings in the first six months of 2008.
 
Thus, so far this year, the U.S. jewelry industry has lost a net of about 300 jewelers, for a net loss of about 1.3 percent of the total number of specialty jewelers."

Read the rest of Ken Gassman for IDEX Online's report at a report on nationaljeweler.com.

Modern Jeweler Magazine Suspends Publication

With a sad heart we say goodbye to an industry stalwart and some great colleagues. Modern Jeweler never looked better than this past year or so in design, layout and useful content.

Seen on modernjeweler.com blog today:

After 108 years of serving the jewelry industry, Modern Jeweler is suspending publication. We’d like to thank all the people who worked hard over the years to make every issue worth reading. We’d also like to thank the retailers and manufacturers who shared their time and expertise with our readers each month. We hope to find a buyer who believes in the future of the jewelry industry as much as we do. But even if we don’t and the August issue of Modern Jeweler is truly the last, we are sure that the jewelry industry’s strong community and generosity of spirit will ensure its recovery is swift and its future is bright. We’ll certainly miss being there to cover it.

                        - Tim Murphy, Publisher, and Cheryl Kremkow, Editor-in-Chief

New York Times says the jewelry industry is "going through a business cycle"

This article in the New York Times sums up our industry this year well... it's been a very tough year.

I always have the feeling that when articles like this appear -- it signals the end of the cycle. What do you think? I sure hope I'm right and that we've hit bottom. Even if we expect a slow recovery.

The best quote in the article is:

"And yet, sales of diamond rings and wedding bands seem to be holding up better than for other kinds of jewelry. Retailers and analysts say a decent engagement ring is still seen as a necessity for men hoping to get a yes to a marriage proposal........

......... For the retailers the good news, relatively speaking, is that the chains say the rate of deceleration has slowed in the last three months. No one is declaring a recovery, or even that the market has reached a bottom. But Tiffany, which has been selling its signature six-pronged diamond solitaire engagement rings through booms and busts since 1886, is confident the sparkle will return once again.

“We’re going through a business cycle,” said Mr. Aaron of Tiffany. “There will eventually again be a rising tide of affluence around the world.”

Cause Marketing For Jewelers -- Luxury with Meaning

Here's another example we found this week of promoting luxury with meaning (and on a budget) -- that's the ticket for the new consumer.

"On it's 125th anniversary Bulgari is supporting Save The Children's global campaign 'Rewrite the Future.'

This silver anniversary jewel: $290

Bulgari will donate $60 from every sale to Save the Children."

Really? Bulgari at under $300 AND a donation? It's a brave new world alright.