Connect with us

Columns

Jewelers’ Gross Sales Are Up, but What About Margins? It’s Time to Take a Closer Look At Bridal

mm

Published

on

Our Edge Retail Academy data pool has expanded and now includes just under 1,000 stores.

Our data, which includes stores with at least three years of historical information, continues to show the independent retailer’s gross sales growing, up 4% for the rolling 12 months ending in January.

Units continue to decline year-over-year for independents, coming in at 5% down for the rolling 12 months and 11.5% down from two years ago.

While units continue to decline, the overall average retail sale continues to climb, up 10% for the rolling 12 months at $288, including all product and service sales.

Gross profit is up 4% for the rolling 12 months, and overall margin has held steady at 46 for 36 months.

Bridal sales continue to perform well, with rolling 12-month sales up 2.9%. Units and average retail sale are up ever so slightly, and margin has come up slightly from 44 to 45.

Advertisement

The bridal department represents approximately 30% of all gross profit.

While it is important to grow your bridal business, it’s equally important to ensure this is a profitable area for you. How do your sales compare to our industry data? Are you achieving sales growth? If so, is it also achieved while growing or at least maintaining margin?

Sales growth is pointless if margins are being sacrificed at a comparable level. Here are a couple of tips to help you improve margins achieved:

1. Review markup on fast-selling items. The 80/20 rule is alive and well when it comes to bridal. Research continues to show that approximately 20% of your bridal inventory is driving 80% of your bridal sales. Are you achieving better margins on your best-selling bridal pieces? More importantly, have you gotten rid of the non-performers? This will allow you to achieve higher stock turns, generating a better return on investment, and the approach better aligns with the evolving retail notion of “less is more.”

2. Look at your discounting policy. First and foremost, you should never discount your fast sellers. This simply makes no sense. Second, revisit your discount policies. Why are you discounting? Is it merely because the customer asked? Have you trained your staff on how to answer questions about discounting? Focus on value and points of differentiation and train, train and train some more. Finally, if you have a customer looking for a deal or you’re set on giving something away, have a tray of non-performers ready that you will happily discount to recoup your investment.

Advertisement

On these numbers alone, every extra percent of markup will add nearly $20,000 in pure bottom- line profit. It’s worth thinking about.

Sherry Smith is the director of business development for The Edge Retail Academy.

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

He Thought It Was a Great Time to Retire — So He Called Wilkerson!

As David Kiselstein, owner of J. Albert Johnson Jewelers in Fairfield, CT says, it was a perfect time to close the store he’d owned for 45 years. “I’m 72-years old, the lease came due and I thought it would be a great time to retire.” A savvy businessman and one of the founders of the Continental Buying Group, Kiselstein urges others who want to conduct a retirement sale to pick up the phone and call Rick Hayes at Wilkerson. “He’ll talk you through it. He’ll help you understand it. He’ll give you the confidence you need to go through such a big experience.”

Promoted Headlines

Columns

NASA to Explore Asteroid Containing Precious Metals Worth $10,000 Quadrillion

Its resources include gold, platinum, iron and nickel.

mm

Published

on

NASA IS GEARING UP for a 2022 mission to “Psyche 16,” an asteroid containing enough precious metal to make everyone on Earth a billionaire. Located between the orbits of Mars and Jupiter, Psyche 16’s natural resources, which include gold, platinum, iron and nickel, are estimated to be worth $10,000 quadrillion. Written out, that number is $10,000 followed by 15 zeros.

Before you start wondering what you might do with your billion-dollar bounty, consider the fact that NASA’s mission to Psyche 16 is strictly scientific. The space agency has no immediate plans to do any mining and the asteroid is way too large to tow back to Earth.

The traditional earth-bound mining community is wondering out loud what would happen to commodity prices if a huge influx of space gold and platinum suddenly hit the market?

It’s also hard to imagine how $10,000 quadrillion in new wealth would merge into a world economy that’s estimated to be worth a mere $75.5 trillion.

The space agency and its university partners are excited to explore Psyche 16 because it appears to be stripped to its core — a core made of solid metal. Scientists wonder whether Psyche could be the exposed core of an early planet, perhaps the size of Mars, that lost its rocky outer layers due to violent collisions that occurred while the solar system was forming.

Measuring about 140 miles (226 km) in diameter, Psyche 16 is named after the nymph Psyche, who, according to Roman mythology, married Cupid but was put to death by Venus. At Cupid’s request, Jupiter — the king of the Gods — made Psyche immortal. The unique metal asteroid was discovered in 1852 by Italian astronomer Annibale de Gasparis.

The space agency is set to launch the Psyche spacecraft in 2022 from Florida’s Kennedy Space Center. It will arrive at the asteroid in 2026.

While NASA is not looking to capitalize on the precious metal bounty that Psyche 16 could yield, two space mining companies — Deep Space Industries and Planetary Resources — are both looking at smaller, nearby asteroids that could be rich in precious metals.

Continue Reading

Commentary: The Business

Building Something Cool Means Having No Regrets, Says Stephen Webster

The designer pulled out all the stops to stand out with his Beverly Hills boutique.

mm

Published

on

PRIOR TO PENNING this column, I looked back at some of the columns written by previous winners of the INSTORE Small Cool and Big Cool jewelry stores in America. Each is a story of passion, dedication and determination (or blood, sweat and tears) to build and maintain stores that never stop compelling and engaging with their clients and communities.

As we all know, building a successful or indeed a “cool” store, no matter what the size, has never been about doing just one thing well. It may start with great product, but that is only the beginning. As jewelers, we have to build trust, offer not only outstanding service but develop almost telepathic relationships with clients, create unique and welcoming environments, and as if that weren’t enough, a brick-and-mortar store owner also has to be as tech-savvy as a 14 year-old, able to navigate the plethora of digital platforms and social channels, apparently without which no one any longer crosses your threshold.

Podcast: A Flash of Cash and Other Meditations on the Value of Jewelry
Over the Counter

Podcast: A Flash of Cash and Other Meditations on the Value of Jewelry

Podcast: Craig Husar Discusses His Career, and His Spectacular New Store, on ‘The Barb Wire’
The Barb Wire

Podcast: Craig Husar Discusses His Career, and His Spectacular New Store, on ‘The Barb Wire’

Podcast: Make Sure You Open the Dang Box
JimmyCast

Podcast: Make Sure You Open the Dang Box

Despite all the above, we love it and continue to strive to be the best and the coolest.

My home is not America; I have, though, traveled across the pond on average every month for the past 25 years, growing not only millions of air miles but also my brand through an incredible network of independent and larger groups of retail jewelers across the USA, witnessing firsthand what it takes to stand out as a store.

When it finally became time to open my own boutique, I wasn’t attached to any one community, so I did what most domestic brands do and blindfolded, stuck a pin in a map of North America, at least I think that’s what other brands do, I might be wrong. My pin landed as far away from my home as it’s possible to get, the “City of Angels”: LA, right bang on the set of Pretty Woman, opposite the Beverly Wiltshire hotel on Rodeo Drive.

I believe there were 25-plus jewelers already on that famous drive, and unlike them, this was my first Rodeo. To stand a chance, the Stephen Webster store had to be different. Our jewelry was already different, so we wanted the environment to look as though the product belonged there.

I’m proud to say that if it was anything, it was different. The etched concrete floor, the crocodile skin (effect) leather covered showcases, graffiti artwork and neons by famous street artists, and up the sweeping staircase on the second floor, the now-legendary NoRegrets lounge, where we showcased everything that makes up the extended world of Webster: chefs, sculptures, conventional and graffiti artists, photographers, a milliner, too many DJs and even a classical trumpet player. The

NoRegrets lounge has earned its title.

Just like every neighborhood store, we earned every one of our clients. Due to the nature of local employment, we never knew who was going to walk through the door, and even though our policy is that everyone gets treated the same, I’m sure one can imagine that some of those Hollywood types do demand that extra mile and a half. Living exactly 6,000 miles away, we like to think we give it. It would be fun to know if any other store owners have such a ridiculous commute; I hope not, for their sakes.

Having our flagship store recognized as “cool” by peers from an industry I love and feel very much part of in a country I really should call home has been such an honor. You have no idea how cool it feels for my team in the US and also back in London, where to say we were voted the coolest big jewelry store in America is massive.

Continue Reading

Shane Decker

What Not To Do During the First 30 Seconds of Any Sale

Huddling at the back is a big no-no.

mm

Published

on

HAVE YOU EVER walked into what appeared to be a nice store, only to spin and leave faster than you came in? Or, have you ever walked into a nice place of business and watched two salespeople look at each other, then you, then each other again, like they’re seeing which one of them is going to wait on you?

You’re not alone — we’ve all had this experience, and jewelry stores are no exception. At too many stores, you’re not greeted at all, and sometimes, you can’t even find anyone to take care of your needs. This is one reason the Internet is doing so well.

People today are time-starved, and they will decide within the first 30 seconds of entering your store whether or not they’re going to give you their money.

Let’s begin with the first five seconds: every customer must be greeted — ideally, from the “sweet spot” in your store (15 feet inside your door to the customer’s right as they walk in). When you’re a client and you’re acknowledged, you feel important. It’s a relief subconsciously to realize that the sales associates know you’re there.

Never allow your sales floor to be vacant when clients come in. Many say they are just looking, but that’s an opportunity for you to use your first close by saying, “I always do that before I buy; let’s get started!” or “I’m glad you came in to take care of that today.”

“I’m just looking” means “I’m just spending.” It means “I’m on a mission, and when I find what I’m looking for, I’m gonna buy it.” It does not mean, “Leave me alone.” Like I said before, we are a time-starved nation, and nobody is just looking.

Do not come from the back of the store to the front; you should be there already. When you come from the back, your mind is focused on the busy work you were doing or the donut you were eating.

Never greet a customer from a group huddle. It’s good to laugh in your store, but if you’re all laughing about something when the client walks in, they may think you’re laughing at them.

Do not use canned openings like “Hi, how are you?” or “What can I help you with?” Clients don’t need “help”; they want professional assistance to make a purchase or information about a service needed. Likewise, don’t say, “Good morning, welcome to Smith Jewelers.” That gets old, fast. What if they come in three or four times a year and hear you say the same thing? Keep your greetings creative and make sure they’re welcoming. Your greeting should be professional and make your client feel glad they came into your place of business.

Be present for the start of the sale, and keep it professional. Starting strong allows you to make it to the end (and hopefully close the sale). By doing so, you’ll keep your client from wanting to go to the Internet — after all, we do want to talk to real people, especially when it comes to jewelry.

Continue Reading

Most Popular