Jewelry Sales For The Year Ahead

Ken Gassman is one of the most respected industry analysts in the market. This softly spoken Southern gentlemen took off the gloves and recently explained in blunt terms to an enthralled audience of jewelers how the 2003 holiday sales season appears to be shaping up at present. Gassman noted that there are three issues which impact jewelry sales more than any other forces - the state of the U.S. stock market, GDP and income levels. As Gassman illustrated, whilst sales are the moment are somewhat stagnant, the future is not as bleak. “The GDP tracks beautifully with jewelry sales,” he pointed out and at present, the U.S. stock market is outperforming its international counterparts.

On the other hand, unlike the balance between jewelry sales and GDP, consumer confidence and sales do not correlate on such a par. For example, even if consumer confidence is high, that has little bearing on the sales of jewelry items. “Mouths and wallets do not work together,” he stresses with a dash of his famous charm.

He also singled out Friedman’s Jewelers, a company which has far exceed it’s competitors in terms of jewelry stock. “Why?” asks Gassman, “Friedman’s requires customers who pay on credit to actually come into the stores to make their payments - they don’t mail monthly statements.” As a result the company has a target of convincing some 28% of those customers to make an additional purchase when they enter the store to make their monthly payments.

And as far as Christmas 2003 is looking? Gassman predicts an increase in sales of some 5-8%. Apparently the U.S. market has to thank President Bush’s tax plan for this, which Gassman says is ‘good for jewelry demand’. Let’s hope his predictions meet the mark.