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By The Numbers: Gold Shines Bright Again

Take heart from the fact that lower prices make your merchandise more attractive, so ultimately this “correction” is good for you.

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By The Numbers: Gold Shines Bright Again

GOLD IS SHINING bright again.Sales in units had been in a steady decline for some time but, as the graph above shows, they have recovered sharply in recent months at the stores in our survey group.

With no obvious catalysts driving the sales improvement we can only assume it’s a delayed reaction to the decline in the price of gold over the last two years. With many inventory items purchased near gold’s high, and given a stock turn of only one per year, most jewelers would have been reluctant to drop their prices. But current prices reflect a more reasonable buy-in level for jewelers replenishing stocks, and a more affordable price for customers, which would spur demand.

Not surprisingly, the percentage contribution from gold to overall sales has also seen a steep increase, with sales inching their way to 9 percent of store sales at the typical American jeweler. If your sales have not shown a similar resurgence, it could be because you are carrying a lot of old product at outdated (and inflated) prices.

Sadly, there is no simple way to deal with this. You may have to bite the bullet and cut your prices to move the items on. The good news is that any restocking will be at a lower price. Take heart from the fact that lower prices make your merchandise more attractive, so ultimately this “correction” is good for you.

For the full story and more ideas to improve your store’s performance, visit instoremag.com/bythenumbers.

By The Numbers: Gold Shines Bright Again

Data gathered from the POS systems of more than 250 stores by the Edge Retail Academy (edgeretailacademy.com). To join the benchmarking panel, email [email protected]

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David Brown is the President of The Edge Retail Academy (sister company of The Edge), who provide expert consulting services to help with all facets of your business including inventory management, staffing, sales techniques, financial growth and retirement planning...All custom-tailored to your store’s needs. By utilizing the power of The Edge, we analyze major Key Performance Indicators that point to your store’s current challenges and future opportunities. Edge Pulse is the ideal add-on to the Edge, to better understand critical sales and inventory data to improve business profitability. It benchmarks your store against 1100+ other Edge Users and ensures you stay on top of market trends. 877-569-8657, Ext. 001 or [email protected] or www.EdgeRetailAcademy.com

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Celebrate Your Retirement with Wilkerson

For nearly three decades, Suzanne and Tom Arnold ran a successful business at Facets Fine Jewelry in Arlington, Va. But the time came when the Arnolds wanted to do some of the things you put off while you’ve got a business to run. “We decided it was time to retire,” says Suzanne, who claims the couple knew how to open a store, how to run a store but “didn’t know how to close a store.” So, they hired Wilkerson to do it for them. When she called, Suzanne says Wilkerson offered every option for the sale she could have hoped for. Better still, “the sale exceeded our financial goals like crazy,” she says. And customers came, not only to take advantage of the going-out-of-business buys and mark-downs, but to wish a bon voyage to the beloved proprietors of a neighborhood institution. “People were celebrating our retirement, and that was so special,” says says.

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