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SBDCNet Industry Snapshot Jewelry Stores NAICS 449310 (SIC

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									                                  SBDCNet Industry Snapshot:
                                        Jewelry Stores
                                    NAICS 449310 (SIC 5944)

This industry comprises of establishments primarily engaged in retailing one or more of the
following items: (1) new jewelry (except costume jewelry); (2) new sterling and plated
silverware; and (3) new watches and clocks. Also included are establishments retailing
these new products in combination with lapidary work and/or repair services.1

                                             Jewelry Store Sales
                                   Year      $Billions Year $Billions
                                   1992       15.18     1996     20.32
                                   1993       16.57     1997     19.78
                                   1994       18.00     1998     21.53
                                   1995       19.15     1999     24.07
                                                        2000     25.32

Source: U.S. Dept. of Commerce, Annual Retail Trade Survey

When Business Occurs. Estimated monthly sales through Jewelry Stores in the United
States are based on data from the Monthly Retail Trade Survey, Annual Retail Trade
Survey, and administrative records and have been adjusted using results of the most
recent economic census.

                                       Percent of Yearly Sales by Month

            Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
            5.3% 8.1% 6.4% 6.4% 8.5% 6.9% 6.4% 7.1% 6.3% 6.7% 8.9% 23.0%

Source: U.S. Dept. of Commerce, Annual Retail Trade Survey, 3 year average (2000-2002)



1
    Similar classifications include:
Industry 448150, Clothing Accessories Stores - retailing of new costume jewelry
Subsector 454, Nonstore Retailers - retailing of jewelry via electronic home shopping, mail-order, or direct
sale
Industry 453310, Used Merchandise Stores - retailing of antiques or used jewelry, silverware, and watches
and clocks
Industry 811490, Other Personal and Household Goods Repair and Maintenance - providing jewelry or watch
and clock repair without retailing new jewelry or watches and clocks
Industry 339913, Jewelers' Material and Lapidary Work Manufacturing - Cutting and setting gem stones
Prepared by SBDCNet, The SBDC National Information Clearinghouse on April 21, 2003.
http://sbdcnet.utsa.edu
Total jewelry sales fell for the second consecutive year in 2001, declining approximately
24 percent to $40.6 billion. The holiday season was impacted by 9/11, but jewelry sales
were also diminished in the months previous. Despite the slow sales figures, industry
experts expected retail jewelry sales to increase to $42.3 billion in 2002 and surpass $50
billion by 2005. In 1983, 26% of all jewelry was imported, by 1997, that percentage had
increased to over one half of jewelry sales (52%). Many of those were exported from Asia.

Source: Davenport & Company as reported in “State of the Jewelry Industry”, National
Jeweler, 96 (17): 50(5), September 01, 2002; and Encyclopedia of American Industries,
3rd ed. 2 vols. Gale Group, 2001.

                                          Jewelry Sales

                             Year     (in billions) Change
                             1992        $26.9      0.4%
                             1993        $28.2      4.8%
                             1994        $30.1      6.7%
                             1995        $31.8      5.7%
                             1996        $33.6      5.7%
                             1997        $35.7      6.3%
                             1998        $38.8      8.5%
                             1999        $42.9      10.7%
                             2000        $41.6      -0.3%
                             2001        $40.6      -2.4%
                       Source: National Jeweler and Davenport & Co.

Where do people buy jewelry?

                                 Jewelry sales by retail outlet
                     Retail Outlet             %          Retail Outlet          %
               Independent Jeweler            39%    Mail Order Catalog          8%
               Mall Jeweler                   37%    TV Shopping                 7%
               Department Store               32%    Internet                   18%
               Discount Store                 17%    Other*                     15%
               Warehouse Club                  6%                                6%

 Source: “Supersellers Research” in National Jeweler, 96 (10): SS12(10), May 16, 2002.

Note: Numbers do not add up to 100% due to multiple responses.
* Other includes craft fairs boutiques, estate sales, antique stores, kiosk, art gallery,
relatives/friends in the business, direct from wholesaler/manufacturer consignment shop,
pawn shop, etc.


Prepared by SBDCNet, The SBDC National Information Clearinghouse on April 21, 2003.
http://sbdcnet.utsa.edu
According to the 2002 Jewelers of America's Annual Cost of Doing Business
Survey, overall jewelry sales remained the same in 2001 compared with 2000 figures.
Respondents are categorized into four groups: Independent High End, Independent Middle
Range, Designer/Artist/Custom, and Chain Stores.

Among the surveys results:

   •   Overall, survey respondents reported a 0% increase in sales in 2001. This is down
       significantly from a median sales increase of 3.3% in 2000 and the 10.5% increase
       achieved in 1999.

   •   Only chain stores enjoyed sales growth (3.2%) in 2001.

   •   Middle-range independents showed no change, and high-end independents lost
       0.3%.

   •   Jewelers in the designer/artist/custom category saw sales decline 12.5%.

   •   Overall net profit to net sales was 6.1% for 2001, the same as in 2000 and lower
       than the 7.3% reported in 1999.

   •   Gross margin held the line in 2001 at 49.3%, up slightly from the 47.4% reported in
       2000, but below the levels reported in the 1980s.

   •   Diamond jewelry and loose diamonds combined to account for 47% of all sales.
       Karat gold jewelry amounted to 11% of sales, while colored-stone jewelry and
       jewelry repairs each accounted for 9%.
Source: 2002 Jewelers of America Annual Cost of Doing Business Survey as reported in
“State of the Jewelry Industry,” in National Jeweler, 96 (17): 50(5), September 01, 2002.

What Jewelers Are Stocking
Diamond jewelry and loose diamonds account for the largest share of sales in jewelry
stores. Thirty-two percent of sales were in diamond jewelry, with another fifteen percent of
sales in loose diamonds in 2001. Karat gold jewelry followed with eleven percent of sales
and colored stone jewelry and watches accounted for nine percent and five percent of total
sales, respectively. Two percent of sales were in platinum jewelry in 2001.

Source: 2002 Jewelers of America Annual Cost of Doing Business Survey as reported in
“State of the Jewelry Industry,” in National Jeweler, 96 (17): 50(5), September 01, 2002.




Prepared by SBDCNet, The SBDC National Information Clearinghouse on April 21, 2003.
http://sbdcnet.utsa.edu
Distribution of Retail Sales By Product Group for Jewelry Stores in 1997 – 448310
According to the 1997 U.S. Economic Census, ninety-three percent of all sales in Jewelry
Stores were in some sort of jewelry. The breakdown of those sales by merchandise line
follows:

                                                        No. of       Total sales      % of total
   Merchandise Line                                     Stores       by item          sales
                                                                     ($1,000)
   Jewelry (including watches & watch
   attachments, novelty jewelry, etc.)                  28,294       $18,492,343      93.0%
   Diamond jewelry (items in which diamonds
   constitute 50% or more of the value of the
   finished piece)                                      24,283       $16, 852,955     42.7%
   Pearl jewelry (items in which pearls constitute
   50% or more of the value of the finished piece)
                                                        17,773       $12,131,015      5.2%
   Other gemstone jewelry [items in which
   gemstones (not diamonds/pearls) constitute
   50% or more of the value of the finished piece]      22,490       $14,467,724      13.4%
   Loose gemstones (including diamonds &
   colored gemstones)                                   8,865        $6,133,583       12.9%
   Karat gold jewelry (items that exclude
   diamonds, colored stones or pearls, or they
   constitute less than 50% of the value of the
   finished piece)                                      23,919       $15,757,112      19.6%
   Watches                                              20,425       $14,937,422      14.1%
   Estate/Antique Jewelry                               8,609        $6,444,610       8.9%
   Platinum Jewelry (items that exclude diamonds,
   colored stones or pearls, or they constitute less
   than 50% of the value of the finished piece)
                                                        5,762        $4,095,841       3.8%
   All other jewelry (including watchbands * gold-
   filled, sterling, costume & novelty jewelry)         15,275       $9,955,912       7.1%

Source: U.S. Census Bureau, 1997 Economic Census




Prepared by SBDCNet, The SBDC National Information Clearinghouse on April 21, 2003.
http://sbdcnet.utsa.edu
Number of Jewelry and Watch Purchasers
This is the estimated number of consumers who buy each type of product in a given year.
Because many consumers purchased more than one category of jewelry, the numbers do
not add up 38.2 million.

U.S. adults who purchase jewelry (17.7% of U.S. adult population)

                           Jewelry Type                        Number of
                                                                 People
                      Gold jewelry                           23.2 million
                      Watches ($100+)                        16.1 million
                      Diamond jewelry                        15.2 million
                      Colored stone jewelry                  13.6 million
                      Silver jewelry                         12.8 million
                      Pearl jewelry                           4.4 million
                      Platinum jewelry [*]                    1.5 million

* Because of small sample size, findings for platinum may not be statistically
representative.

Source: Davenport & Company as reported in “State of the Jewelry Industry”, National
Jeweler, 96 (17): 50(5), September 01, 2002.

How much jewelry is purchased as Gifts Vs. Self-Purchases?

                                                 Men                    Women
                                         Gift      Self-          Gifts     Self-
                                                 Purchase                 Purchase
            Pearl jewelry               82%       18%            50%      50%
            Platinum jewelry            80%      20%             33%      67%
            Colored stone jewelry       79%       21%            34%      66%
            Diamond jewelry             74%      26%             42%      58%
            Gold jewelry                64%       34%            44%      56%
            Silver jewelry              55%       45%            36%      64%
            Watches                     43%       57%            41%      59%

Source: “What Motivates Americans To Buy Jewelry and Watches: Part 1 of 4” Jewelers'
Circular-Keystone, CLXX (11): 98+, November 1999.




Prepared by SBDCNet, The SBDC National Information Clearinghouse on April 21, 2003.
http://sbdcnet.utsa.edu
Demographics of Jewelry Gift Purchasers
People between the ages of 25 and 34 are more likely to purchase gifts of jewelry than any
other age groups – primarily due to their life-stage. Consumers in this age group are
marrying for the first time. This age group spends more than twice the average on gifts of
jewelry. The large millennial generation will keep the spending on gifts of jewelry for non-
household members relatively stable as they move up into this life stage. In terms of race
and ethnicity, Hispanics as a whole spend 71% more on gifts of jewelry than the average
consumer.

Source: Best Customers: Demographics of Consumer Demand, Cheryl Russell, New
Strategist Publications, Copyright 2001.



This material is based upon work supported by the U.S. Small Business Administration under Award
Number SBAHQ-99-B-0001. Any opinions, findings and conclusions or recommendations expressed in this
publication are those of the author(s) and do not necessarily reflect the views of the U.S. SBA.




Prepared by SBDCNet, The SBDC National Information Clearinghouse on April 21, 2003.
http://sbdcnet.utsa.edu

								
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