RAPAPORT… The number of jewelry businesses operating in the US fell 4.2% year on year to 24,280 in the first quarter as exits from the industry more than doubled, according to data from the Jewelers Board of Trade (JBT).
The number of companies leaving the sector rose to 323 for the quarter, from 125 in the same period of 2019, the JBT’s figures showed. The number of new businesses declined 19% to 46.
The impact of the COVID-19 shutdowns will mainly be reflected in the second quarter, as there’s a lag between the drop in revenues and bankruptcy filings, JBT president Erich Jacobs told Rapaport News in an interview earlier this month. In the first quarter, six jewelry companies entered bankruptcy, including five retailers — the same numbers the organization recorded a year earlier.
Image: A jewelry store in New York’s diamond district. (Shutterstock)
Jewelry Trade Shrinks 4% in First Quarter
The Bottom Line
- The number of US jewelry businesses fell 4.2% year over year to 24,280 in Q1.
- Exits from the industry more than doubled to 323, up from 125 in Q1 2019.
- New jewelry businesses declined 19% to 46, while bankruptcy filings remained stable with six companies entering bankruptcy.
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