For over two decades, the landscape of jewelry retail in the US has been marked by a steady decline, a trend that persisted through 2023. According to data from the Jewelers Board of Trade (JBT), the number of jewelry retailers dwindled by 2.8% to 17,554 establishments last year.
This decline isn’t just a statistical blip; it’s a narrative echoed by individual stories like that of Fox’s Seattle, a venerable business with a 112-year legacy, set to join the ranks of closures in 2024. Owner Zoey Mann, citing a desire to prioritize family alongside shifts in consumer behavior exacerbated by the Covid-19 pandemic, reflects a broader sentiment among industry veterans.
“I’ve devoted two decades to this business, and now it’s time to prioritize my family,” Mann explained, echoing the sentiments of many long-time proprietors grappling with generational transitions and market dynamics.
For many like Mann, the prospect of succession presents a formidable challenge. Bill Boyajian, a jewelry industry consultant, outlines various reasons behind business closures, including grueling hours, evolving retail landscapes, and retirement. However, a critical factor contributing to closures is the inability to generate sufficient sales to facilitate succession or attract buyers. Boyajian notes that a jewelry retailer must gross at least $1 million annually to be considered viable for succession, with $2 million being the benchmark for sustainability.
Kyle Bullock, fourth-generation owner of Bullock Jewelry in Roswell, New Mexico, echoes these sentiments, emphasizing the industry’s aging demographic as a primary driver of closures. Bullock underscores the dearth of new leaders entering the fold, attributing this trend to the arduous nature of the business and its adverse impact on work-life balance.
But amidst tales of closure and transition, success stories emerge, highlighting innovative approaches to succession. Duke’s Jewelers of Springville, Utah, seamlessly transitioned to fourth-generation ownership under Kimberly Ngarupe, a testament to the enduring legacy of family businesses.
In another innovative twist, Harvey and Maddy Rovinsky, former owners of Bernie Robbins Jewelers, gifted their business to its management team, fostering continuity while ensuring a debt-free transfer of ownership.
While challenges persist, industry experts like Boyajian remain optimistic about the future of independent jewelers, provided they adapt to changing market dynamics and prioritize succession planning. As the jewelry retail landscape continues to evolve, embracing innovation and fostering a new generation of leaders may well be the keys to longevity in an ever-changing industry.
