Jewelry Stores

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 14,600 jewelry stores in the US sell fine jewelry, silverware, watches, and clocks. As opposed to costume jewelry, fine jewelry generally contains some type of precious metal or gemstone. Companies may also create custom jewelry or provide repair services.

Seasonality Challenges

Jewelry sales are highly seasonal, and December is an exceptionally important month because of holiday gift giving.

Expanding Competition

Jewelry stores have lost market share to a variety of channels, including department stores, mass merchandisers, online sites (retailers, auction sites, and Internet shopping clubs), and catalog and TV retailers.

Industry size & Structure

A typical jewelry store operates out of a single location, employs 7-8 workers, and generates over $2 million in annual revenue.

    • The jewelry retailing industry includes about 14,600 companies which operate 21,000 stores, employ 113,800 workers and generate about $33 billion annually.
    • The jewelry industry is somewhat concentrated, as the 50 largest firms account for 45% of industry sales.
    • Large companies include Sterling Jewelers (Zales, Kay Jewelers, Jared the Galleria of Jewelry), Fred Meyer Jewelers, and Helzberg Diamonds.
                              Industry Forecast
                              Jewelry Stores Industry Growth
                              Source: Vertical IQ and Inforum

                              Coronavirus Update

                              Apr 22, 2022 - Jewelers Cut Ties With Russian Diamond Firm
                              • Several major jewelers have said they will no longer source diamonds from Russia, including Tiffany & Co., Signet, Pandora, and Chopard, according to The Guardian. In response to Russian aggression, the US has sanctioned Alrosa, which is 33% owned by the Russian government and is the world’s largest diamond producer by volume. There is a growing concern in the global jewelry industry that Russia could use the proceeds of its diamond industry to help fund its war in Ukraine. Russia produces nearly one-third of the world’s diamonds.
                              • US retail spending rose 0.4% in March 2022 compared to the previous month. Retail sales for clothing and clothing accessories stores, which includes jewelry stores, grew 2.6% in March over February. However, growth in retail sales was not able to outpace inflation which grew at an annual rate of 8.5% in March, a new four-decade high. With gasoline prices at record highs, consumers are likely pulling back on some discretionary spending, according to The Wall Street Journal. As the Omicron variant has faded, consumers are spending more on services and less on physical goods.
                              • After two years of reduced spending due to the pandemic, the wedding industry is expected to stage a massive comeback in 2022, a potential boon for jewelry stores. According to The Wedding Report, the number of US weddings in 2022 is expected to reach nearly 2.47 million, nearly double the number in 2020 and the largest number of weddings since 1984. Total wedding industry sales in 2022 are forecast to reach more than $60 billion, up from $43.5 billion in 2021 and more than double 2020’s sales of $25.7.
                              • Some jewelers say that reduced opportunity to travel has driven increasing jewelry sales. "In every market in the world, the number one competition to our industry is travel," said Stephen Lussier, executive vice president with De Beers, the world's largest diamond mining firm. Diamond jewelry has been capturing some of the unspent travel budget, Lussier said. However, some jewelry spending may contract as travel resumes. In 2022, global air passenger travel is expected to snap back to 83% of what it was in 2019 before the pandemic began, according to the International Air Transportation Association. Air passenger numbers in North America are forecast to rebound to 94% of 2019 levels in 2022. In 2021, global air travel was only 47% of pre-pandemic levels.
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