Jewelry sales hinge on holiday boost
Darren McCarter never thought twice about when he wanted to extend a holiday hand in marriage to his wife Erin. He says he knew the Christmas season was the perfect time to purchase a ring for his proposal.
“It felt like many things I wanted involved came together around Christmas.” McCarter said. “I knew I wanted it to be around family, so on Christmas Eve with most of our family present I popped the question.”
Jewelers local, and around the nation hope many grooms are thinking like McCarter this Christmas season. Early projections fromInternational Diamond Exchange (IDEX) online research predicts December jewelry sales will exceed last year’s mark by an average of 5 percent for retail stores like JC Penny and Target. A more up-market, national chain Tiffany's, rose by 23 percent last month and expect sales totals to reach $29.1 million in December, nearly $6 million more than last year. Local stores like Kizer-Cummings located at 833 Massachusetts street hope these early figures prove accurate.
The above figures are based upon projected sales but are not actual figures. Each figure was given by the companies website. “I’ve been here since 1981 and the sales during Christmas time are extremely important to livelihood,” Ernie Cummings, owner of Kizer-Cummings, said. “We rely heavily on people purchasing gifts for their loved ones over the next month.”
There are still some grinches in the jeweler’s Christmas this year. For local jewelers like Cumming’s, the business has become flooded with more competition in recent years. He says not only do big chain stores around Lawrence cut into jewelry sales but also the internet can hurt business as well.
A retired jeweler after 52 years, Frank Komarek agrees that being a local business in the jewelry industry has become increasingly difficult. Komarek says that the personalization given to each customer at Christmas time has been what makes business successful every year.
“You are friends with your customers. You talk to them about things outside of gold and diamonds,” Komarek says. “I pride myself on being able to befriend the customer. They remember that and they return because of the personal service."
Along with big box competition, an unlikely outsider also might hurt the jewelry industry this Christmas season. Hollywood is releasing the movie “Blood Diamond” starring Leonardo DiCaprio. The movie sheds light on the brutal practices that are used to harvest diamonds in Africa. These diamonds are known as conflict diamonds and the diamond industry has taken steps to weed out these gems. The World Diamond Council (WDC) created a website called www.diamondfacts.org to give those purchasing diamonds a better understanding of what to watch out for.
“99 percent of diamonds sold are conflict free,” Cummings says. “From the research I have done, the risk of purchasing a conflict diamond is very rare.”
Even with four retail chains competing with the local businesses in Lawrence and movie casting a negative portrayal of diamonds, there are still positive signs for December sales figures to be firmly in the green for stores like Kizer-Cummings.
The employment rate is at a five-year low, standing at 4.4 percent. In turn, consumer wealth levels are at an all time high. Consumers have amassed more assets than ever before and are using that spending power. This year precious metals like gold, silver, and platinum have soared to record setting levels according to IDEX. Gold currently sells for $647.00 an ounce, up almost $200.00 from last year at this time. With prices going up, it means businesses will not need to hold as much inventory to generate greater sales.
Hearing these figures McCarter considers himself fortunate to have already purchased his ring. He said that another good part about buying a gift like an engagement ring around the holidays is that it takes care of the need to find the perfect Christmas gift.
“It kills two birds with one stone,” McCarter says. “You spend a large amount of money, but it’s much better than giving a ring in November and having to turn around and buy a Christmas present.”