Jewelry turns around

A new study shows that jewelers increased their annual sales in 2003, a turnaround from the flat sales numbers of the two previous years.

According to Jewelers of America’s 2004 Cost of Doing Business Survey, co-produced with Professional Jeweler magazine, survey respondents reported an increase of 4.4 percent in sales in 2003. Chain stores saw the largest growth, a 10-percent jump from the previous year. However, sales also surged for independent high-end and independent mid-range retailers, with 6.7 and 4.1 percent respectively.

This marks the first time since 2000 that overall respondents enjoyed sales growth, and the first time since 1999 that respondents in all survey categories reported growth.

In 2003 the median profitability of survey respondents rose to 4.5 percent, up from 4.2 percent the previous year. Designer/artist/custom stores led the way with 1.7 percent. However, gross margins fell slightly from 49 percent in 2002 to 48.8 percent in 2003.

Independent mid-range retailers had the highest gross margins, with 50.1 percent, followed by chain stores with 49.2 percent.

The Cost of Doing Business Survey, which looks at many key performance measures and includes an informative “how-to” section to help readers interpret and best use the statistics, allows retail jewelers to evaluate and compare their stores’ financial performances to others in the industry.

By reading and analyzing the report’s comprehensive financial information, retail jewelers can better understand the state of the industry and put that knowledge to use in running their businesses.

The survey is based on confidential questionnaires completed and submitted by JA members.

The 2004 edition of the study, featuring financial data compiled from 2003, is available for purchase to JA members for $19.95 and to non-members for $125. To order, call JA at 800.223.0673 or visit www.jewelers.org.