By The Numbers: The Consumers Aren’t Buying Jewelry Myth

THE CHART ABOVE shows 12-month rolling averages for the number of items the average store in our survey sold and also the average ticket for the same period.

What’s amazing is that jewelers are selling as many pieces as ever, just at lower prices. The question then is whether customers are buying cheaper pieces because they have less spending power or because sales staff are directing them to lower-priced goods.

To ensure the recession isn’t a self-fulfilling prophecy in your store:

1. Drum it into your staff that people are still buying jewelry.
2. Don’t stop replacing expensive items.
3. Buy up. The average value of your stockholding should be 20 percent higher than your average sale.
4. Keep the margins up. Don’t reduce your starting prices.

This story is from the May 2009 edition of INSTORE.