Jewelry revenues vary widely in 2007

Same-store revenue varied widely among independent jewelers in 2007 compared with last year, according to preliminary results from National Jeweler's post-holiday survey.

When asked how same-store revenue for 2007 as a whole compared with 2006, the greatest percentage of respondents (17 percent) reported that sales were down by more than 10 percent.

Fifteen percent of respondents, however, reported that sales were up more than 10 percent, another 15 percent reported a 1 percent to 5 percent gain in sales and another 15 percent reported that sales were flat.

On a category-by-category basis, sales of watches, colored-stone jewelry, platinum jewelry and pearl jewelry were flat, survey respondents said.

Sales of loose diamonds and finished diamond jewelry were down significantly, while sales of designer, private-label (store brand) and in-store, custom-designed jewelry were up slightly among jewelers who sold them.

In the karat-gold-jewelry category, the greatest percentage of respondents was divided between flat sales and sales being down significantly.

As for sales during the 2007 holiday period (encompassing November and December), 68 percent said wavering consumer confidence due to the volatile stock market, high gas prices and the housing market impacted sales the most, followed by higher price points and Internet competition (47 percent).

And, despite increasing competition from e-tailers, survey respondents did not take advantage of the Internet to boost holiday sales. When asked how they used their Web site during the holiday season, 41 percent of respondents stated they did not use it differently than they did at any other time of the year. Another 47 percent did not spend anything on online retail operations during November and December, while 50 percent reported they don't use e-mail marketing.

Looking ahead to the coming year, 35 percent of respondents are unsure what 2008 will bring.

The survey was sent to more than 16,000 jewelers. Retailers who would like to participate in the survey can still do so by clicking here.
Source: nationaljewelernetwork