b'EDAHNS TAKEBY EDAHN GOLANC onventional wisdom in manyAs noted above, malls have lost their appeal.Finally, there is another issue at hand. corners of the jewelry industryIn a more figurative way, location is also partThe figures above are all nominal gains. is that 2024 was an OK year forof what is hurting online specialty jewelers.In 2024, U.S. inflation eased but still averaged the U.S. retail market. Some willTheir marketing costs, aimed at topnearly 3 percent, which erased much, if not all, point out that sales figures were,online positioning, are 20-30 percent of netof the increased sales many companies had.at the very least, positive compared with 2023. income. Cutting back on marketing, which And it is true, to some extent.most did, negatively impacted their sales. THE BRIGHT SIDEOverall U.S. jewelry sales did increase, upFinally, there is a cultural shift that mustDont lose heart; its not all bad. In fact, on average by 2 percent, but the butter wasbe considered.opportunities abound, as those that had a not spread evenly.In the past, men would consult the wom- double-digit increase in sales show.Higher-end companies, such as Cartier-en close to their significant othermothers,Here are a few of their strategies. owner Richemont, and large mass retail- sisters, friends, etc.about what ring to buy.Developing and constantly refreshing ers, such as Costco, successfully increasedOften, the advice concluded with a warn- their brand, as did Pandora, Tiffany & jewelry sales by double-digit percentages, asing, And remember, dont be cheap! ThatCo. (part of LVMH), and many others. the 2025 State of the Majors $100 Millionpressured grooms-to-be to spend more. Offering high-quality, well-designedSupersellers list shows. Today, couples often shop together, and thejewelry that has a lasting appeal, as Pandora is another retailer with a notablepressure to spend ismany retailers do.increase in sales, also up double digits at thetherefore reduced. Get-Having a very well-maintained stores it owns and operates in North America.ting a large diamond atToday, couplesvalue proposition, as Costco While companies like Richemont, Cost- a much lower price isoften shopdoes with its low (and probably co, and Pandora pulled the average up, therenow not only possibletogether [forflat) markups.were many retailers that recorded a declinebut also acceptable.engagement Marketing to maintain a client in jewelry and watch sales. Just look at the dropbase and increase demand.Most notable among them are jewelryin the average price ofrings], andAlso, while the market is con-retailers with a lot of stores in malls.diamond engagementthe pressuresolidating, many of the retailers As many of you are aware, malls are suffer- rings over the last fiveto spend isthat grew were primarily specialty ing from a decline in foot traffic and, as ayears. What was oncethereforestores, jewelry- and watch-only re-result, sinking sales, making the once-populara $3,200 to $3,600tailers, which comprised 57 percent shopping centers a less-than-ideal locationpurchase averaged justreduced. of the $100 Million Supersellers for most retailers. $2,700 in 2024.EDAHN GOLAN,list this year, up from 51 percent.There were other factors that contributed At specialty jewelers,TENORISThat tells us that specializing to the industrys so-so results for 2024,the trend was no differ- in your field is appreciated by including lab-grown diamonds.ent. The previous aver- consumers, especially if they are age diamond engagement ring spend of $5,800willing to spend above average.THE DESIRE FOR MORE declined to $4,800 in 2024, for all diamonds.There are signs of challenging economic American consumers, in a constant pursuitWhile engagement rings set with naturaltimes ahead for the U.S. market. Historically, of a better price and more, are displaying andiamonds sold, on average, for $6,700, theirthat has had a short-term negative impact on appetite for this diamond option that costslab-grown diamond counterparts averagedjewelry demand, followed by an early and large 85 percent less than natural diamonds andjust $2,600, or 61 percent less. That is signifi- bounce back because jewelry is truly a necessity.comes in sizes of 2 carats and larger, makingcant, as no other jewelry item took such a di- The question is not if there is a desire for them a fit for the more-for-less consumer. vergent track in average consumer spending.jewelry but, rather, can we succeed in creating For many retailers, this means theirConsidering the importance of the dia- an experience that will compel consumers to customers want a product they often wouldmond engagement ring as an anchor product,choose jewelry over other luxury products. rather not sell.retailers desire to pull away from lab-grownIt is largely in the industrys hands. The aversion is pure economics. With thediamonds is understandable. average lab-grown diamond unit price on aAdd to that the drop in natural diamondEDAHN GOLAN is an industry analyst constant downward slope, declining fasterprices, the jump in gold and silver prices,and researcher and managing partner of trend than they can increase unit sales, retailers areplus consumers withdrawal from previouslyanalytics company Tenoris. He compiles the sales in somewhat of a clash with their clientele. popular shopping places, and we have thefigures that appear in National Jewelers annual Another driver is location.makings of limited growth. $100 Million Supersellers list.NATIONAL JEWELER 21'