Jewelry’s glitter dims as shoppers shy away

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

What were people buying this holiday season? Apparently not jewelry, according to industry experts.

Sales this holiday season dropped for 80% of jewelers, according to initial survey results from 220 business owners released Monday by the National Jeweler Network.

Of those, 65% saw a double-digit decline in same-store sales for the November-December period compared with the same period in 2007. Sales were flat for 5% of respondents. Only 4% reported that their revenue jumped more than 10% over the holiday months.

Over the course of the year, sales plunged 10% or more for nearly half of jewelers surveyed.

Most blamed the slide on low consumer confidence caused by the struggling global economy, but other factors included competition from chain stores holding liquidation sales and bad weather.

Of more than 2,000 shoppers surveyed for the Jewelry Consumer Opinion Council, 12% said November was a good time to buy jewelry -- the same number that reported actually purchasing any, according to data released just before Christmas.

Now is not the time to purchase bangles, necklaces, earrings and the like, 35% of respondents said.

The next year promises to be just as rough as just 17% of customers believe 2009 will be a good year to invest in jewelry. The vast majority were ambivalent or indifferent.

-- Tiffany Hsu