Jeweller - February Issue 2018

CHRISTMAS TRADING
to Christmas – forecasting a 2.8 per cent year-on-year increase in Christmas trade,”
Zimmerman added, noting that the association also predicted Australians would
spend approximately $4 billion on apparel and accessories, the category which
encompasses jewellery.
“Although retailers would have liked to see a higher growth figure, we believe we
are on track with our predictions,” Zimmerman confirmed.
These sentiments are also backed by the ABS’s November statistics, which reported
that sales increased by 1.2 per cent, effectively topping economist forecasts of an
increase of 0.4 per cent.
The bureau added it was the largest monthly percentage gain since January 2013
and that annual sales effectively ‘accelerated’ from 1.8 per cent to 2.9 per cent, the
fastest increase in five months.
TRADING REVIEWS
Ben Tracy from Finelines Jewellers on the Gold Coast told Jeweller that Christmas
had been “definitely better than the previous year,” despite instore traffic potentially
being lower.
“We are not a traditional jewellery store and don’t stock a wide variety of items,
but as a manufacturing workshop I found that people remodelling, restoring and
repurposing their jewellery was a big hit this year,” Tracy noted.
“Although our figures were up on last year, I feel that the foot traffic may have
been lower. This leads me to believe that people were spending or commissioning
bigger items or more involved restoration jobs, rather than small ticket items.”
Another jeweller who experienced a rise in sales over the Christmas period was
Garry Holloway of Holloway Diamonds in Melbourne.
“Both stores performed well – overall, 25 per cent better than last year and one
of our best years since the financial crisis,” Holloway said, adding that diamonds
and diamond jewellery made up two thirds of sales, while remodels and precious
gems made up more than half of the rest.
Also reporting positive results was supplier Worth & Douglas’ head of marketing
and sales Chris Worth.
“Gauging by the re-orders before Christmas and in January, most retailers seem
to have had a steady Christmas. We felt sales were on par with last year and Karen
Walker jewellery sold particularly well. Items we had in various group catalogues
also sold well, with repeats coming through right up until we closed for Christmas,”
Worth said.
“This is always a busy time of the year for wedding ring sales being the wedding
season, and the factory has been busy since reopening on the third of January,”
he added.
JEWELLERS ARE IN A GREAT
POSITION TO CAPITALISE ON
CHANGING CONSUMER HABITS
AND THIS IS PARTICULARLY
EVIDENT DURING THE PRE-
CHRISTMAS SHOPPING PERIOD
When asked whether there had been any significant changes during the
Christmas period, Couture Kingdom managing director Michael Tran reported
mixed results.
“The feedback we received from our stockists was that they were well down and
we definitely felt it too. [However], our precious metal range was really successful
which helped our Christmas trade,” Tran noted.
Duralfex Group Australia (DGA) managing director Phil Edwards, whose portfolio
includes TW Steel, Jag and Thomas Sabo, raised a similar point.
“Overall, we had mixed results. In November and the first half of December we
traded well; however, on a wholesale level the second half of December was
slower than previous years. Feedback from our retail partners has also been that of
mixed results,” Edwards said.
Commenting on products that had come out on top over December, Edwards
noted that Jag watches had performed “exceptionally well”.
“This was due to a revamp of the brand, with current styling and market driving
strong retail price points,” he added.
Also reporting positive results was Ken Abbott of Timesupply, who said he had
experienced strong sales leading into Christmas with his fashion brands Coeur de
Lion, Qudo and Dansk Smykkekunst.
“We have experienced good re-orders before Christmas and very strong re-orders
so far in January; well in excess of last year’s reorders,” Abbott told Jeweller, adding,
“The retailers we have spoken with are happy with the sales in fashion jewellery.
“I believe 2018 will be a great year and we look forward to being part of it.”
FORGING AHEAD
While it is difficult to predict how the next 12 months will unfold, feedback from
those within the industry suggests that jewellers will need to continue evaluating
their business practices and ensuring they have procedures in place that capitalise
on increasing sales.
Pocklington said that Nationwide had devised a ‘retail response plan’ as a direct
response to member’s feedback.
“Nearly half of our members have responded to our trading survey, with the
comment that business advice and support is the most valuable way the group
can assist them,” Pocklington explained. “This is the reason that we have responded
with our industry best practice program and our 2018 retail response plan.”
He added: “It is essential that jewellers re-engineer their businesses so that they
can prosper in this changed retail environment.”
Webb agreed, noting “consolidation and back to basics” were principles jewellers
would need to employ in order to prosper in the year ahead.
“The current challenges will remain and not ease any time soon; however,
independents are actually in an advantageous position if they have their business
model and product ranging sorted,” Webb stated.
“They need to have control over inventory and marketing well sorted for their
demographic, including all things digital,” he added.
Retailers and suppliers alike will more than likely agree with Tran, who offered
these final sentiments: “It was a tough year, but we are hopeful about 2018. We
believe if we keep improving and giving the market what they ask for, the good
times will come around again.” i
32 Jeweller February 2018