Jewelry Sales Mix Varies by Retail Channel
By Ken Gassman www.idexonline.com
(IDEX Online) – Specialty jewelers dominate the market for diamond jewelry and fancy watches, but other merchants – typically multi-line discounters – sell more colored gemstone jewelry, pearls, and gold jewelry, according to recently released data from the Census Bureau’s Economic Census.
Until the Economic Census was published, most people assumed that specialty jewelers’ sales mix of individual jewelry categories was broadly the same for other retailers who happen to sell jewelry along with a plethora of other merchandise. However, the Economic Census gave IDEX Online Research the platform upon which to aggregate jewelry sales by category between specialty jewelers and all other merchants who sell jewelry.
In the census period, just over half of America’s total jewelry sales were made by specialty jewelers; the balance – just under half of the $62 billion in sales – were generated by multi-line merchants, typically discounters such as Wal-Mart and Costco as well as department store merchants like J.C. Penney.
Based on the Census Bureau’s Economic Census data, the following table illustrates the jewelry sales mix by the two key retail channels: specialty jewelers and all other merchants.
Source: US Cernsus Bureau
In our view, there are no real surprises, though some of the figures need an explanation. For example, more units of watches are sold through discounters than through specialty jewelers. However, based the total dollar value of all watch sales, specialty jewelers are by far the largest channel. After all, virtually all Rolex watches and other high value timepieces are sold through specialty jewelers.
It is no surprise that very little platinum jewelry is sold through merchants other than specialty jewelers. This is a high-value metal, and price points are far above the Wal-Mart level.
The Economic Census numbers correlate closely to the Jewelers of America data (when the categories are adjusted), but they do not correlate with data released by either the Diamond Information Center or the World Gold Council for their respective jewelry segments.
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