RAPAPORT...The 4Cs are not the only things that make a piece of diamond jewelry a sales winner. In an ongoing series, RDR explores the “3Ws” — what’s selling, what’s not and why — by going straight to the people who really know — jewelry retailers. Each month, we ask a sampling of retailers to comment on the important issues that are facing the industry today. Here is what they had to say when asked in late October: Have customers started to come in to do their holiday shopping and what’s selling?
BRIAN LEVINE, PRESIDENT
BRIAN MICHAEL’S JEWELERS
TONAWANDA, NEW YORK
“We came off of a tremendous year last year and our diamond sales have never been better. We’re selling larger stones. — between 1- and 5-carat stones — and more of them than we ever have. So I’m very positive. I think we’ve done our very best to really take care of our customers and I think if they’re going to buy something, they’re going to come back to us.
“We just had an event at the store in October and 25 to 30 percent of our customers were there shopping for Christmas, which is very unusual because it’s so early. Maybe they were planning ahead and this was a good opportunity for them and they took advantage of it.
“We are still going to be promoting the Journey Pendant, although not as heavily as in the past; we’re still promoting the circle pendant. We have a very good inventory of diamond crosses. And I think diamond earrings are going to be bigger than last year, not only solitaires but larger hoops. We can see that starting to take place already.”
LOU GUARINO, OWNER/PRESIDENT
LOUIS ANTHONY JEWELERS
PITTSBURGH, PENNSYLVANIA
“As far as the overall tone of the holiday season, I’m very optimistic. I think it’s going to be very positive. We sell to people celebrating happy occasions. And if they’re going to cut back somewhere, I don’t know that it’s going to be in the jewelry budget. We haven’t seen very much of a downturn in the numbers up to this point
“Diamonds are always a strong category throughout the year and especially at the holiday time. People may be more conservative with their styles; they may go for things that are a little bit more wearable — diamond solitaire earrings, diamond wedding bands — as opposed to the fancier pieces. I think men like to see big diamonds for the money that they’re spending — sizable stones. If you keep things simple and classic, I really see a strong trend toward that.
“It seems that in the past few years our holiday window keeps getting smaller and smaller. So if things don’t start picking up until late in November, I don’t think it’s any different that any of the past five years.”
PATRICK DAOUD, OWNER
DAOUD’S FINE JEWELRY
FORT LAUDERDALE, FLORIDA
“We’re blessed to have a very large and loyal following because of our tenure and our reputation; we’re been in business for 113 years, family owned and operated. We just had a record year at the end of June, so we’re anticipating a good Christmas. We already have people putting things aside. I just had somebody recently put aside a bracelet for $35,000. We’re not anticipating any kind of downside.
“We do a lot of vintage things, which are always popular. We’re the largest preowned Rolex dealer in the area. We’re seeing people forego paying the premium for a new watch and they’re buying a preowned watch to save money but retain value. And the bread-and-butter stuff always sells, whether it’s solitaire earrings or bracelets.”
JOE ASHCRAFT, OWNER/PRESIDENT
ASHCRAFT JEWELERS
MUNCIE, INDIANA“We’ve had a slower September and October than in recent years, so I don’t quite know what to expect. Things will hopefully pick up in November.
“I think what’s going to be really selling are the sterling and 18-karat lines that we carry with price ranges from $300 to $800. People are leaning toward things in the lower price points.”
STEVE LAROCHELLE, MANAGER
PEARSON’S JEWELRY
MANCHESTER, NEW HAMPSHIRE
“We have seen a little bit of traffic for the holidays. And we all are anxious in anticipating a positive holiday season because you do have to keep a positive outlook. I think we’re going to hunker down and go back to the classics of diamond solitaire earrings and just classic diamond merchandise or basic gold. Traffic has been slow and I think it will build slowly and get stronger.”
TAYLOR C0WARDIN, MANAGER
COWARDIN’S JEWELERS
RICHMOND, VIRGINIA“We are seeing people buying for Christmas. We already have some things in the safe that we’re holding for people to come pick up before the holiday.
“We’re taking a wait-and-see attitude. We definitely haven’t bought more than we have in previous years. We’ll hopefully be surprised on the upside, but we’re protecting ourselves, hedging our bets, on the downside.”
MATTHEW PAV, OWNER
PAV & BROOME JEWELERS
GULFPORT, MISSISSIPPI“I think it’s starting to pick up. People have come in a little bit. It probably won’t be the way it’s been in the past few years, but I think with the election behind us that will help.
“I don’t know if the hot sellers will be the big-ticket items this year. We just bought what we normally do every year. We carry the Scott Kay line and we try to have a lot of its silver and gold merchandise and we have Rolex. And bridal is still consistently good. We definitely bought stock but not one particular item.”
BRIAN TOONE,
PRESIDENT/CHIEF EXECUTIVE OFFICER
JEWELRY DESIGN CENTER
SPOKANE, WASHINGTON“As far as what will be selling, my anticipation is that it’s going to be the basics because when things are uncertain, people want to stick to the main categories. I’m fairly optimistic about the season. Certainly, September, when the whole banking thing happened, made people stop coming in but for us, it seems that traffic has resumed. And I think people will want to feel good after the election.
“It just brings home that what’s important to people are loved ones. And I think they’re going to be thinking, ‘You’re not expecting anything great for this Christmas and so when I give this to you, it’s going to be a really nice surprise.’ And we’re starting to see people come in thinking along those lines.”
Article from the Rapaport Magazine - November 2008. To subscribe click here.