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Larger Stores are Taking a Bigger Slice of the Diamond Pie

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The typical small jewelry store in America has seen its diamond sales grow 10 percent in the last two years — which is not bad except in comparison to big stores, which have enjoyed 30 percent growth. That’s a huge difference in what is the key sales category for most jewelers.

According to data collected by the Edge Retail Academy, diamond sales at smaller stores — defined as those doing less than $800,000 in sales per year — had grown to an average of $338,000 by March this year from $304,000 in January 2013, whereas larger stores (those with annual sales over $800,000) had seen their diamond sales leap from $948,000 to $1.26 million. For anyone trying to expand their business, there is a very large difference between achieving annual growth of 5 percent versus 15 percent, especially in a mature segment like diamonds. One is significant while the other barely keeps up with inflation.

Selection is a big reason for this widening gap; as we have said previously, you must have it to sell it. But there are other factors at play here as well, such as the competence and confidence of your sales associates, especially when it comes to bigger stones. If your diamond sales growth has been sluggish, get more ambitious with your merchandising, and get serious about training your staff.

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It’s Going to Set Us Up Very Nicely for Retirement

You’ve worked hard all your life. And if you’re like most jewelers contemplating retirement, you’re hoping that your going-out-of-business sale will add to your nest egg — with minimal complications. That’s exactly what Doug and Jacki Friedrich, fourth-generation owners of Friedrich Jewelers Inc., of Vernon, Conn., experienced when they selected Wilkerson to run their sale. “Jewelers who are contemplating a sale should go with Wilkerson because of their experience,” says Doug. And with financial goals “exceeding expectations,” the couple can now focus on enjoying the next chapter of their lives. “It’s going to set us up very nicely for retirement,” says Jacki. “The money’s coming in and we have no complaints. It’s been wonderful.”

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David Brown

Larger Stores are Taking a Bigger Slice of the Diamond Pie

mm

Published

on

The typical small jewelry store in America has seen its diamond sales grow 10 percent in the last two years — which is not bad except in comparison to big stores, which have enjoyed 30 percent growth. That’s a huge difference in what is the key sales category for most jewelers.

According to data collected by the Edge Retail Academy, diamond sales at smaller stores — defined as those doing less than $800,000 in sales per year — had grown to an average of $338,000 by March this year from $304,000 in January 2013, whereas larger stores (those with annual sales over $800,000) had seen their diamond sales leap from $948,000 to $1.26 million. For anyone trying to expand their business, there is a very large difference between achieving annual growth of 5 percent versus 15 percent, especially in a mature segment like diamonds. One is significant while the other barely keeps up with inflation.

Selection is a big reason for this widening gap; as we have said previously, you must have it to sell it. But there are other factors at play here as well, such as the competence and confidence of your sales associates, especially when it comes to bigger stones. If your diamond sales growth has been sluggish, get more ambitious with your merchandising, and get serious about training your staff.

For daily news, blogs and tips jewelers need, subscribe to our email bulletins here.

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var disqus_shortname = ‘instoremag’; // required: replace example with your forum shortname

/* * * DON’T EDIT BELOW THIS LINE * * */
(function() {
var dsq = document.createElement(‘script’); dsq.type = ‘text/javascript’; dsq.async = true;
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})();

Please enable JavaScript to view the comments powered by Disqus.
blog comments powered by Disqus

Advertisement

SPONSORED VIDEO

It’s Going to Set Us Up Very Nicely for Retirement

You’ve worked hard all your life. And if you’re like most jewelers contemplating retirement, you’re hoping that your going-out-of-business sale will add to your nest egg — with minimal complications. That’s exactly what Doug and Jacki Friedrich, fourth-generation owners of Friedrich Jewelers Inc., of Vernon, Conn., experienced when they selected Wilkerson to run their sale. “Jewelers who are contemplating a sale should go with Wilkerson because of their experience,” says Doug. And with financial goals “exceeding expectations,” the couple can now focus on enjoying the next chapter of their lives. “It’s going to set us up very nicely for retirement,” says Jacki. “The money’s coming in and we have no complaints. It’s been wonderful.”

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Most Popular