Are Sales Improving This Fall?

RAPAPORT… 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 late October: Are you seeing a pickup in sales this fall season? Are you doing anything to capitalize on it?

LINDA BRANTLEY, OWNER
TREIN’S JEWELRY
DIXON, ILLINOIS
“We are seeing an increase. We had a good September and October seems to be following suit. I really feel encouraged that things are turning around. Our business is higher-end and we’re seeing it across the board, but particularly with engagement rings. Young people are not bashful about expressing what they want.

“We do promotions for Breast Cancer – 20 percent of the sales of anything in the store that’s pink goes to Susan G. Komen — and for Alzheimers — 20 percent of the sale of anything purple. People do seem to respond to this and appreciate that we’re supporting these causes.”

JIM WATTERS, PRESIDENT
BRUCE WATTERS
ST. PETERSBURG, FLORIDA
“We actually saw a little bit of a pickup in August. We had a pretty decent Christmas last year and then in January it got real quiet. And it was quiet for several months. Our only event for the year is in July; we call it our sunrise sale. And it was one of our best ever. In August, things started picking up and in September, things were good and our year ends in October.

“We’re selling watches, we’re selling bridal, we’re selling color. Gold has been dead, pearls have been dead. I would say it’s been mostly diamond jewelry, some color and watches are okay, too. Probably fashion more than bridal. We’re not a name-brand store; we carry some but people come in for specific types of pieces. Every once in a while we sell a 10- to 15-carat tennis bracelet and some of the big things are still selling.  Anniversary bands and all are selling — there are always anniversaries and birthdays.”

WAYNE ADDESSI, PRESIDENT
ADDESSI JEWELERS
RIDGEFIELD, CONNECTICUT
“Absolutely. September was a great month — larger-ticket items sold. So I’ve definitely seen an uptick. It appears that my wealthier clients are starting to release their funds and feel confident — it’s in line with the stock market. I’ve definitely seen an uptick in September, September through now.

“Pretty much what’s driven our business is reaching out to customers, staying in touch with customers. I’ve been a little bit gun-shy as far as any advertising but what I’ve done all along through this economy is email blasts, which are a very cost-effective way to stay in touch with customers. If someone comes in and sees a diamond and a week or two or a month goes by and I haven’t heard back from them, I’ll send them an email and include a picture of what they looked at. And I might try another email a week later, just as a courtesy. Those are the customers who have come back and are spending.

“The bigger-ticket items have made an impact on my business in a positive way. Fancy colored diamonds have been very good for us; it’s been strong. And through this whole economy what has been our strongest suit has been the service business. We have our own jeweler and we do watch repair. That’s been pretty strong throughout this whole recession: making jewelry, fixing jewelry, appraising, watch repairs.”  

LARRY HALL, PRESIDENT
BAKER & BAKER JEWELERS
MARIETTA, OHIO
“We have seen some of the branded diamonds pick up — we’re a Hearts on Fire dealer — and that’s because of the emphasis we’re putting on that. Number one because of quality and number two, margins. We are seeing a little bit of an increase due to my outstanding sales staff. People have the money but they want to know who wants it.

“We’re in the Appalachian foothills of Ohio and it’s a very difficult climate for us. We’re having our 91st anniversary sale starting next week and we’re advertising on the local cable television and then we also do electronic mailings as well as direct mail. We’re plowing money into that more than ever before.”

JONATHAN ZADOK, CO-MANAGER
ZADOK JEWELERS
HOUSTON, TEXAS
“I think there’s definitely been a pickup. I think that the stock market has definitely helped; people are feeling better. When people lose 40 to 50 percent of their net worth, they go through all the phases of loss — denial then anger then grieving then acceptance. And people have gone through that. But life goes on and people realize it.

“Things that were hurt the most by the economy were fashion and watches, so I think those two might pick up the most. People might go down in size or quality, but generally they will buy a diamond engagement ring. But they might not buy a watch or piece of fashion jewelry.  So those categories have the most to go up.

“In terms of promotions for the fall, we’ve actually set up several sale cases that we never really had before. This attracts a client in and relieves excess inventory.”

JAMES ORLOFF, PRESIDENT
ORLOFF JEWELERS
FRESNO, CALIFORNIA
“I sit on the board of the California Jewelers Association and I do hear what’s going on in California. Some areas posted very well in September but in October have not seen any growth. My business in general is way down, but I’m seeing people shopping again. And my optimism is that they will start buying. The growth opportunity is coming around, I think. We need to give gifts and tell people we love them. We’re a society of consumers.

“I believe that in the next couple of months we’re going to see growth, but I don’t think it’s started yet. The bottom line is people need to go back to the brick-and-mortar stores. It’s not about the deal any more, it’s about what you’re getting.”

JEFF ALEXANDER, PRESIDENT
ALEXANDER’S OF ATLANTA FINE DIAMONDS
ATLANTA, GEORGIA
“What we’ve seen up to this point is folks are repairing jewelry more than buying new jewelry. So our repair department is up considerably. But people are beginning to look at things for the fall and I think we will begin to see an increase in buying.

“I think it’s still going to be a price-point Christmas. I think you’ll still have to have certain price points well represented, things under $1,000.

“What people are looking at is mostly fashion. We’re doing a pretty good business with a sterling and 18-karat line that’s a nice price point — from $250 to $600 — nice color.

“In terms of diamonds, we do a lot of price-point items with a number of vendors. Diamond earrings are strong — fashion, not studs — and diamond pendants — fashion, not solitaires.”