Connect with us

Big Survey

Jewelers Are Getting Pickier About Their Vendors and That’s a “Good Thing”

INSTORE Big Survey finds 62% of jewelers carry 10 or fewer vendors, up from 32% a decade ago.

mm

Published

on

From how many vendors do you regularly order stock?

1-5
24%
5-10
35%
11-20
27%
21-30
6%
More than 30
4%
NA
4%

INDEPENDENT JEWELERS APPEAR to be getting much more discerning about the vendors they order from, with almost two-thirds (63%) now regularly buying from 10 or fewer. That compares to 32% who maintained such a tight portfolio of vendors a decade ago.

According to the 2021 INSTORE Big Survey, only one in 10 jewelers now carries more than 20 vendors, down sharply from 51% in 2012, when we asked a similar question.

The trend is a positive one, says management consultant Kate Peterson, as the lower number allows store owners and their suppliers to develop genuine partnerships.

“I think this is reflective of the fact that most successful retailers have figured out two important things over the past several years:

  1. Trying to be everything to everybody really doesn’t work anymore. Defining your brand, then staying true to that brand in your product offerings is a far better way to build a loyal customer following.
  2. It’s far better to be important to a few vendors than to be insignificant to many. With fewer and fewer sales reps on the road, the old-style personal relationships are harder to come by. Choosing partners carefully with the intention of building long-term alliances is the best strategy,” Peterson says.

When building a relationship with vendors, let them know that they were handpicked, veteran industry analyst Ken Gassman suggested, “and that you will be loyal, but only if they are loyal to you.”

The 2021 Big Survey was carried out between August and September, attracting nearly 700 anonymous responses from owners of independent jewelry stores across the United States and Canada. The full results are available in the November issue of INSTORE.

Advertisement

Chris Burslem is Group Managing Editor at SmartWork Media.

Advertisement

SPONSORED VIDEO

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.

Promoted Headlines

Most Popular