The 2002 edition of Jewelers of America’s annual Cost of Doing Business Survey reports that overall jewelry sales remained the same in 2001 compared with 2000 figures.
The survey, which is published every fall, categorizes respondents into four groups: Independent High End, Independent Middle Range, Designer/Artist/Custom, and Chain Stores. The 2002 edition covers 2001 data.
Among the survey’s results:
Overall, survey respondents reported a 0% increase in sales in 2001. This is down significantly from a median sales increase of 3.3% in 2000 and the 10.5% increase achieved in 1999.
Only chain stores enjoyed sales growth (3.2%) in 2001. Jewelers in the designer/artist/custom category saw sales decline 12.5%.
Overall net profit to net sales was 6.1% for 2001, the same as in 2000 and lower than the 7.3% reported in 1999.
Gross margin held the line in 2001 at 49.3%, up slightly from the 47.4% reported in 2000, but below the levels reported in the 1980s.
Diamond jewelry and loose diamonds combined to account for 47% of all sales. Karat gold jewelry amounted to 11% of sales, while colored-stone jewelry and jewelry repairs each accounted for 9%.
The Cost of Doing Business Survey is available to JA member retailers for $19.95, $125 for non-members. To purchase the survey, call (800) 223-0673 or visit www.jewelers.org.