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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 If your sales have not shown a similar resurgence, it could be because you are carrying a lot of old product at outdated (and inflated) prices.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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When Sales Beat Projections, You Know Wilkerson Did Its Job

There are no crystal balls when it comes to sales projections. But when Thomasville, Georgia jeweler Fran Lewis chose Wilkerson to run the retirement/going-out-of-business sale for Lewis Jewelers and More, she was pleasantly surprised to learn that even Wilkerson could one-up its own sales numbers. “Not only did we meet our goal, but we exceeded the goal that Wilkerson had given us by about 134%,” she says. After more than 40 years in the business, Lewis says she decided a few years ago to “move towards retirement.” And she was impressed by Wilkerson’s tenure in the industry. Overall, she’d recommend the company to anyone else who may be thinking it’s time to hang up their loupe. “As a full package, they’ve done a very good job and I’d definitely recommend Wilkerson.”

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