Buying Smart

RAPAPORT… After the shows in Las Vegas ended, retailers came home to take stock of what they had seen and prepare for the second half of the year. In 2009, many chose not to attend the shows, and most spent the year selling existing stock in an effort to keep costs down and tighten inventory. In 2010, restocking is more of a priority, which means merchandise is moving again. That means stores are cautiously hopeful that this year’s Christmas season, although it may be months away, will be a good one.

Trading up

Though some of the people who attended this year’s Vegas shows felt the mood was a little subdued, almost everyone was there to buy. “I went to Vegas this year, and it seemed quiet to me,” said Keith Hurdle, owner of Hurdle’s Jewelry in Boulder, Colorado. “We went to see the people we normally visit, and we did about as much buying as we normally do. I think we’ve become smarter business people. We use what’s in the safe now, and we don’t buy as broad.”

Shopping the show was a big focus for Tyler Nogai, vice president of sales and marketing at Arthur’s Jewelers in St. Paul, Minnesota. Unfortunately, he didn’t find as much as he was looking for. “I think the Vegas show was average this year,” he said. “There was not a lot of new merchandise, and the breadth of lines was not big.” That said, Nogai admitted, “We did a lot of buying. We bought more this year than last year. Last year, people sold down inventory, but this year, business has been good. We brought in new lines, but not as many as we had hoped.”

Bruce Yamron, owner of Yamron Jewelers, with two stores in Naples, Florida, also bought more this year than he did last year. “We went to Vegas and we bought,” he said. “We were there to freshen our inventory, and we bought 50 percent more than we did last year.”

Good news for manufacturers is that even people who didn’t go to the shows once again are looking for new product lines. Although she didn’t go to Vegas this year due to a scheduling conflict, Rosalee Eles, co-owner of Crown Fine Jewelry in Scottsdale, Arizona, is still on the lookout for well-priced merchandise. “We’re looking for another designer line, and price point is important.” she said. “We added Pandora a couple of years ago, and now I want something in the way of a wedding line because I’m trying to rebuild our wedding business.”

Steve Samaras, owner of Zachary’s Jewelers in Annapolis, Maryland, is also looking into adding to his inventory. “We didn’t go to Vegas this year because we had scheduling issues,” he said. “We’ll be at the JA show in New York, which is easier for us to attend. But I typically go looking for new lines. We only added one last year but I’m looking at a couple of others this year.”

Forward Thinking

Thinking about what to buy and stock this year also means looking forward to what the rest of the year holds. “I hope we’re not buying for Christmas now,” said Hurdle. “I hope we sell through our inventory, and we have to buy more for Christmas. We need to continue to buy and restock, but we don’t need to gear up for the holidays. Tighter inventory keeps you healthy.”

Nogai is also waiting to see what he’s going to need. “We have already bought a lot for the fall,” he said. “We do some Christmas buying in Vegas, but we don’t do most of our Christmas buying until August. And a lot of it is keeping our top sellers in stock.”

In Florida, Yamron’s season is all about wintering customers. “Our season is seven or eight months long, and we use the four summer months to plan for the next eight,” he said. “We’d like to bring in some new lines to show our customers, maybe alter the mix a little more. We’d like to offer more to more people. Before the recession, we were very into luxury consumers, but we know we need to make more sales, and we need more inventory to make more sales, not just bigger-ticket items.”

For Eles, her current focus is getting back some of the business she lost to online retailers. “With the internet growing every year, we’ve lost market share as an independent,” she said. “We’re trying to recapture that. I’ve seen our business erode and I want it back. Last year was a tough year. But I’d say the economy is picking up.”

Samaras agreed that things are getting better and that a stable economy will inevitably help jewelry sales. “Assuming things remain status quo, I think 2010 will improve over last year,” he said. “You can feel the consumer confidence starting to return. How do I know? One of my staff members asked why she hadn’t gotten a raise!”

The Marketplace

• Round and princess are the top-selling shapes, with some cushions also moving.
• 1.5 carat is the current best-selling weight.
• SI1 is still the most purchased clarity, followed by VS1.
• G-H is the top color range.
• In settings, 14-karat white gold continues to outsell platinum.
• The average price for an engagement ring, including stone and setting, is $7,800.