Independents
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Valentine's Day not heartache for all jewelers
By Michelle Graff
February 17, 2009
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| "Q-ori" ring in 18-karat gold with brilliant-cut diamonds by Nanis. Nanis.it |
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New York--Valentine's Day didn't spell complete heartbreak for jewelers this year despite the dismal economic conditions, with a few retailers even reporting their sales were up this season.
A few of the jewelry storeowners interviewed by National Jeweler said foot traffic was down, but a few big-ticket purchases helped to buoy their sales.
Other retailers reported selling a high volume of lower-priced diamond jewelry.
Looking ahead to 2009, retail jewelers said they don't know what to expect, but are moving forward with plans to tighten spending, clean up their inventories and keep on advertising.
Northeast
Valentine's Day traffic was "not terrific" at David Craig Jewelers in Langhorne, Pa., said owner David Rotenberg.
"We didn't find a lot of people motivated by the holiday. It's just the way things are," he said. "Usually, you'll get some traffic for lower-priced earrings, necklaces, little hearts. I saw none of that. It just didn't exist."
Also absent were Valentine's Day-specific engagement ring purchases, although Rotenberg noted he did sell a few rings not related to the holiday.
Those who were buying for Valentine's Day instead favored colored-stone pieces set in sterling silver or 18-karat gold, or colored-stone pieces with diamond accents.
Overall, Rotenberg said, it has been a slow couple of months, with business in January and February down 40-50 percent compared with last year.
Meanwhile, at Evan James Ltd. in Brattleboro, Vt., owner Evan James Deutsch said an uptick in advertising helped his store to surpass its Valentine's Day sales from last year by a slight margin.
"It seemed like this year, everybody was promoting Valentine's Day," he said. "[For us], I think it was the extra advertising [dollars] we spent. Whether that translates into extra profits, I don't know."
He said he ran advertisements for his store on more radio stations, including one with a largely young-male demographic, and also hosted a well-attended men's evening with refreshments and free Swiss Army knives.
Popular sellers at Deutsch's Vermont jewelry store included diamond pieces, many heart-shaped, priced between $200-$500.
Southeast
At Elizabeth Bruns Jewelers in Charlotte, N.C., a city highly impacted by the changes at Wachovia Bank, owner Wilson Glasgow is grateful for any sales that come his way.
"It's been quiet," he said. "Our business is very quiet right now. But we did some Valentine's business. These times, you're thankful to do any business."
He said foot traffic for the holiday was down, but his store did manage one large sale, a diamond ring priced in the five figures.
Another big seller at his store for Valentine's Day was the moderately priced Temple St. Clair line.
Glasgow said he upped his advertising but, as expected, the holiday was not one of his busiest on record.
"We didn't expect it to be a boom time and it wasn't, but we did some business, and we are thankful," he said.
At Allen's Jewelers in Albany, Ga., owner Steve Allen said Valentine's Day sales were definitely down from last year, terming the holiday's turnout as "almost non-existent."
He said the fact that Valentine's Day was on a Saturday this year hurt his business because people were not stopping at his store on their way home from work to purchase presents, as they might have if the holiday fell on a weekday.
Looking to the year ahead, Allen said he's unsure what to expect.
"I literally have no idea," he said. "I'm about as nervous as a cat on a hot tin roof."
Midwest
Jill Garfinkle said it was a surprisingly robust holiday at her store, Garfinkle's Fine Jewelry in Highland Park, Ill.
"Actually we had some sales. It's like I could faint. I did not expect it," she said.
Her theory: People are tired of holding on to their money and are, perhaps, making up for the gifts they didn't give at Christmas.
"I think people are tired of holding back. I think you can just hold back so long and the wife expects a gift," Garfinkle said.
The top sellers at her store spanned from Pandora jewelry to high-end diamond necklaces and earrings.
She said in this type of economy, general spending is down, but people come out to shop on certain holidays.
"And they came out for this," she said of Valentine's Day.
At Anshus Jewelers in Menomonie, Wisc., owner John Anshus also made wide-ranging sales, selling a number of Hot Diamonds pieces priced around $100 as well as a few higher-end diamond jewelry pieces.
Overall, he said he had fewer Valentine's Day shoppers in his store but sold a greater number of big-ticket items, resulting in a holiday that was down in traffic but up in sales.
"We actually did better than last year," Anshus said, but is quick to note that business wasn't booming.
As the year continues, he said they're going to be taking a close look at their inventory to make sure they have everything in stock that they need.
"We're just going to pick out very good, outstanding pieces in all divisions...in rings and everything," he said. "We have a very good inventory, but we want that inventory to look better."
South Central
At C. Aaron Penaloza Jewelers in San Antonio, Texas, owner Aaron Penaloza noticed fewer shoppers spending less on Valentine's Day purchases.
Estimating his business was down 15-20 percent, he said those who normally spend $500-$1,000 were purchasing pieces in the $200-$600 range.
In addition, he said he usually does about half a dozen sales of more than $2,000 for Valentine's Day; this year, that number dropped to two customers spending that amount.
"There just weren't as many people, and those who came in weren't spending as much," he said.
Top sellers in his store included colored-gemstone pieces and estate jewelry, while diamond sales dropped.
Penaloza said at his store, they run a sale for the entire month of February, an event that attracts mostly self-purchasers.
"We'll see how that plays out. Generally we have good business after Valentine's," he said.
West
At Van Renssalear Jewelers in Billings, Mont., owner Steven Morse reported an uptick in Valentine's Day sales due to a big business in diamond earrings and pendants priced between $500-$1,000.
"We were up," he said. "It wasn't a huge amount, but we were up."
While it's hard to pinpoint why his store had a relatively robust Valentine's Day, he said one reason could be that with a varied economy and few subprime loans, Montana remains somewhat sheltered from the economic downturn that is crippling other parts of the country.
"We are in an unusual situation in our state in that we don't rely very much on one industry," Morse said.
Meanwhile, at Zwillinger and Co. in San Francisco, owner Mel Wasserman reported that his Valentine's Day business was off by about 20 percent, but notes it is never a notable holiday for his store, which carries mostly higher-priced items.
He said he sold a few engagement rings but at lower price points than normal, a trend that is symptomatic of the general decline in consumer confidence.
"People are just more careful in the amount they're spending for whatever they're buying," Wasserman said. "People are afraid. People who have money don't want to spend it because they're afraid they're going to lose more."
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More Independents
Paso Robles, Calif.--Eleven percent of Jewelry Consumer Opinion Council (JCOC) panel members plan to purchase fine jewelry or watches as a gift this holiday season, with 82 percent of this group believing they are either somewhat or extremely likely to do so, according to the JCOC's Pre Holiday study. Read More
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