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 14,000 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 retailers, and catalog and TV retailers.
Industry size & Structure
A typical jewelry store operates out of a single location, employs fewer than 9 workers, and generates $3 million in annual revenue.
- The jewelry retailing industry includes about 14,000 companies that operate 19,000 stores, employ 123,000 workers and generate about $46 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
Recent Developments
Jul 2, 2024 - Higher Prices, Employment
- Producer prices for jewelry retailers grew 6.7% in April 2024 compared to a year ago, according to data from the Bureau of Labor Statistics. Since 2019, prices have increased 30.9% attributed in part to rising gold prices and global tensions. Employment by jewelry, luggage, and leather goods retailers grew 2.9% in April compared to a year ago, per the BLS. The industry is still staffing up after a major drop during the pandemic; levels remain 6.5% lower than in 2019. Wages at jewelry, luggage, and leather goods retailers declined 2.5% in April, to an average of $23.47 per hour, according to the BLS.
- The men’s jewelry market is projected to grow from $35.9 billion in 2024 to $71.8 billion in 2032, at a CAGR of 8.4%, driven by higher disposable income, according to a Polaris Market Research report. The men’s jewelry market was valued at $34.2 billion in 2023. According to the report, the men’s jewelry category has undergone a significant transformation with growing fashion awareness, design versatility, and a changing depiction of masculinity in society. Wedding bands and signet rings with gemstones, pendants with religious symbols or personal engravings, and layered necklaces are becoming more popular with men. The ring category dominated the market in 2023, as rings have become more of a status symbol. Sales of men's gold jewelry are expected to grow significantly during the forecast period.
- A new UBS report in Retail Dive forecasts that 45,000 retail stores may close in upcoming years as online sales gain share. Online retail penetration is expected to rise to 26% from 21%, with retail sales growth of 4% by 2028, as the industry focuses more on fulfillment and distribution centers. If the closures occur, USB said the total number of stores in the US will fall from 958,533 to 913,500. Other factors driving store closures include a tighter lending environment, higher operational costs, and consumers spending more on services than goods. The report stated that sporting goods, clothing, consumer electronics, home furnishings, hobby, book, and music stores have closed the most locations since the first quarter of 2019. Still, retailers can incorporate existing stores as an important piece of their omnichannel capabilities. Per the report, “Our analysis assumes that stores remain an important part of the overall retail ecosystem for retailers and consumers. In the simplest terms, stores serve as hubs of fulfillment and support distribution logistics. This is increasingly more important as consumers are becoming more demanding for convenience or immediate deliveries.”
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
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