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By The Numbers: Gold Shines Bright Again

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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 If your sales have not shown a similar resurgence, it could be because you are carrying a lot of old product at outdated (and inflated) prices.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.

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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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Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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David Brown

By The Numbers: Gold Shines Bright Again

Published

on

{loadposition davidbrownheader}

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.

Advertisement

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]

{loadposition xtra-browncolumn}

Advertisement

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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Most Popular