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 15,000 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 6 workers, and generates $3 million in annual revenue.

    • The jewelry retailing industry includes about 15,000 companies that operate 21,000 stores, employ 117,000 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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 4, 2024 - Higher Producer Prices, Employment
                              • Employment for the jewelry, luggage, and leather goods retailers category increased in Q4 2023 compared to the previous year, according to data from the Bureau of Labor Statistics (BLS). However, employment levels are still slightly lower than in December 2019, before the pandemic. Employment costs for the category decreased by 3% in December 2023, compared to December 2022, though wages are up 22% since December 2019, according to the BLS. Producer prices for jewelry retailers have been on the rise throughout 2023, peaking in Q4. Overall, producer prices have increased by over 27% from 2019 to 2023. Meanwhile, consumer spending levels rose in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
                              • According to a recent report by Grand View Research, the global jewelry industry is expected to grow significantly in the coming years, reaching a market value of $482 billion by 2030. The industry is projected to increase at a CAGR of nearly 5% between 2024 to 2030. In 2023, the global market size was valued at $353.2 billion. Rings were the largest jewelry segment in 2023, accounting for a 33% share. Greater demand for rings by male and younger customers is driving ring sales. Gold jewelry is the most popular material globally, with a market share of 54.9%. Additionally, the report projects that the US jewelry market will grow at a CAGR of 4.1% from 2024 to 2030.
                              • Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
                              • A new report from the National Retail Federation and Appriss Retail shows returns for the retail industry reached $743 billion in merchandise in 2023, according to Chain Store Age. The rate in 2023 was 14.5%, lower than the 16.5% in 2022 and 16.6% in 2021. The average retailer faces $145 million in merchandise returns for every $1 billion in sales. Online sales have a higher return rate; 17.6% of merchandise purchased online is returned compared to 10% for pure brick-and-mortar returns. Over 15% of holiday gifts are expected to be returned, totaling some $148 billion. Fraudulent returns account for 16.5% of total holiday returns. Types of return fraud in 2023 included returns of used, non-defective merchandise (49%), the return of shoplifted or stolen goods (44%), returns of goods purchased on fraudulent or stolen tender (37%), and return fraud from organized retail crime organizations (20%).
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