The 4Cs are not the only things that make a piece of diamond jewelry a sales winner. In an ongoing series, Rapaport Diamond Report 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 early December: What are customers buying for the holidays and how is this season shaping up compared with 2008?
JIM SCHWARTZ, PRESIDENT
ROBIN JAMES JEWELERS
CINCINNATI, OHIO“Our hottest-selling items have probably been the Lorenzo pieces in sterling silver and 18-karat yellow gold, necklaces and earrings and things — it’s bigger, colored stones, semiprecious looks. For the most part, it is about price points. I was aware of price point issues and I stocked a lot under $1,000. We are getting some diamond business — we’ve had a couple of huge sales, but the price points of probably $400 to $600 are what’s selling best as far as quantity goes.
“Things are up quite a bit from last year and we’re up significantly so far in December.”
MICHAEL POLLAK, CHIEF EXECUTIVE OFFICER (CEO)
HYDE PARK JEWELERS
DENVER, COLORADO“I would say it’s a return to the classics, right now. We’re selling a lot of designer goods, primarily under $5,000. I would say from $5,000 to six figures, it’s a return of the classics — three-stone rings, both with fancy yellow centers and white centers, studs and things like that. People are not getting too crazy in high-end designer or fashion goods. We’re finding the better purchases being made in classic jewelry. We stocked that way this year; we really fine-tuned our inventories and retooled some of our designer business for both self-purchase and aspirational, so there are a lot of things in our store that are from under a thousand to the $5,000 price range, but we also still focus on our better watches and classic diamond jewelry.
“We’ve had some exceptionally tough weather in early December, but November was our first up month for the year, both in terms of traffic and revenue.”
JIMMY GREEN, PRESIDENT
J.GREEN JEWELERS
SAN ANTONIO, TEXAS“I would say so far, and it has been true all year, diamonds are best sellers — whether diamond engagement rings, studs or pendants. We’re selling more diamonds than we did last year, but not as much color. I’ve been selling a lot of major diamonds, from a carat to 5 carats. Half my store is color — colored diamonds and color in general — and while we’re selling it, it hasn’t been as strong as it has in the past.
“Traffic count is up 38 percent so far for December. Business is excellent — it wasn’t, but it is now. It was terrible for a while but it’s come back.”
J
OE BIDERMAN, PRESIDENT
HILLER JEWELRY
METAIRIE, LOUISIANA“So far, what we have been seeing is diamond studs and diamond hoop earrings, higher-priced items for us, which is not what we expected to see. And at the other end, fashion, nongold — Alexis Bittar’s Lucite line or Stephen Dweck. And also a little bit of bridal.
“We’re just starting to see people putting something aside or thinking about it. November was encouraging, so we’re hoping December will be encouraging, too.”
JOE ASHCRAFT, OWNER/PRESIDENT
ASHCRAFT JEWELERS
MUNCIE, INDIANA“Believe it or not, it’s still Pandora — the charms are still selling like hotcakes — and diamond stud earrings and sterling and 18-karat lines are doing well, too. It’s pretty much about price point. We’re still selling a diamond here and there, but not like we used to. In terms of diamonds, the average is a half to a carat. Diamond fashion jewelry is selling but it’s pieces like the Andréa Candela line, which is made in Spain and has kind of a David Yurman look but they do more pendant, earrings type of things. Lorenzo is still selling well and Lori Bonn, a designer in California, a lot of the silver lines. This year, we stocked 600 items between $50 and $350, new items, and we’ve had nothing but compliments on the quality and variety of what we have. So it’s going very well this year.
“Right now, we’re running about 10 percent above last year, which was down 18 percent. We’ve had some very encouraging days. This is the first month where I can truly say that I think we’re going to have an improvement. My goal is to see if we can exceed last year.”
PATRICK DAOUD, OWNER
DAOUD’S FINE JEWELRY
FORT LAUDERDALE, FLORIDA“It’s not one specific thing. I just sold a piece for $350,000 and we have stuff for $150. Preowned watches are selling — a lot of people don’t want to pay a premium for a brand-new watch. Studs are selling, as they always do. And diamonds. Fashion pieces are selling, and color and vintage items. I’m trying to think of something that’s not selling. We always stock a big inventory. So it’s across the board.
“We are seeing good traffic but we actually had a pretty good Christmas last year. What’s happening around the area here is that a number of stores have gone out of business. We’ve been in business for 114 years — we were named to the Jewelers of America 100 Club — and people like the idea of longevity and that we’ve been in the same location for the past 48 years.”
STEWART BRANDT, OWNER
H. BRANDT JEWELERS
NATICK, MASSACHUSETTS“I thought last year Christmas was weird, but I think this one is going to be even weirder. People are either plunking down large chunks of change or buying two Pandora beads for fifty bucks. I’m not seeing any of that middle-line stuff, although I did not participate in the Everlon promotions and maybe that’s where the middle dollars are going. Semimounts have been very strong and better pieces with color and diamonds, inside-out hoops are selling on the high end and Pandora on the other end.
“Traffic stinks, but people do wait for the last minute — it’s been that way for the 30 years I’ve been in business. It will be what it will be. If you were paying attention to what was going on, regardless of how the season turns out, you should be in business next year. If you bought like you’ve been buying for the past 20 years, you’re going to be the next Robbins.”
Article from the Rapaport Magazine - January 2010. To subscribe click here.