Jewelry Stores

Industry Profile Report

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

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation 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

                              Recent Developments

                              Nov 7, 2022 - Quarter of US Diamond Jewelry is Online
                              • In value terms, 25% of all US diamond jewelry sales take place online, according to the latest Diamond Insight Report by De Beers. In 2015, the online channel only accounted for 14% of diamond jewelry sales value. Online sales now account for 31% of diamond jewelry sales volume, compared to just 18% in 2015. Growth of online diamond jewelry sales is primarily being driven by Gen Z consumers, who make 42% of purchases online. Nearly 40% of Gen Z diamond jewelry buyers research a brand’s ethical credentials when shopping. De Beers that as Gen Z comes of age, diamond jewelry brands will increasingly cater to the digitally-native and socially-conscious cohort.
                              • Despite high inflation and rising interest rates, the National Retail Federation (NRF) expects consumer spending to remain resilient this holiday season. While the NRF acknowledges consumers are feeling the pinch of higher interest rates and inflation, it believes economic fundamentals – including job growth, rising wages, and savings accumulated during the pandemic - will sustain consumer spending. The NRF also points to US gross domestic product growth of 2.6% in the third quarter as evidence that the US economy hasn’t slipped into recession. The NRF forecasts holiday spending will rise between 6% and 8% over 2021 levels to reach between $942.6 billion and $960.4 billion. The outlook for 2022 is down from the 13.5% rise seen in 2021 but is better than the average 4.9% growth seen over the last decade.
                              • More jewelry customers are opting for lab-made instead of mined stones, according to CNN Business. Lab-grown diamonds are indistinguishable from mined ones but are significantly less expensive. Man-made stones are also seen as a more environmentally friendly and ethical option compared to mined diamonds. Some industry insiders have noted an uptick in married couples looking to replace the natural diamonds in existing engagement rings with larger, lab-made ones. In July, the number of engagement rings with man-made diamonds rose to 52%, while the number of engagement rings with natural diamonds fell by 28%, according to Edahn Golan Diamond Research & Data.
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