2024 State of the Industry Report

This can be compared to US data showing that the
GFC devastated the US jewellery industry. A census by
the Jewelers Board of Trade (JBT) - a not-for-profit,
member-owned association - found that “the number
of jewellery doors which closed in 2008 is estimated to
be around 1,500, though some believe it was closer to
2,000.”
The 2010 SOIR stressed ‘retirement’ was another
common reason for independent jewellery store
closures. Small, family businesses have always
dominated jewellery retailing, and the post-war baby
boomers had caused a spiral in store closures.
Jeweller reported 13 years ago that if no family
member is willing to take over, the only other option
is to close the business. Succession planning is
notoriously difficult for retailers.
In addition, it’s challenging to sell a jewellery business
as it is capital intensive – meaning a significant
investment in stock and fit-out - and requires a higher
degree of expertise than many other retail categories.
Jewellery knowledge is the most basic requirement
- and gemmology, jewellery designing, and
manufacturing skills are desirable.
Selling the business is always an option, but it is not
easily sold if profitability is marginal. And again, this is
a trend in the Western world, supported by US data.
The JBT data dates to 1987, and in 2009, it was
reported that every year – except three years in
the early 1990s – the number of US retail jewellery
businesses had declined.
Our 2010 study also noted, anecdotally at least, that
recessions and difficult trading conditions tend to
separate the ‘wheat from the chaff’.
Unsuccessful small businesses will often use the
excuse of a ‘recession’ to save face when they
announce closure rather than taking responsibility
for their business failings.
That is, it’s easy to make money in good times, and
if you own a business that is only marginally profitable
Only 33 per cent of independent jewellery retailers
report that their business is profitable today than it
was before the pandemic.
when difficult trading conditions arrive - as they indeed
will - a borderline business will not survive.
Hold your horses
Having established several reasons why independent
jewellery stores would naturally decline in number, the
2024 study finds that there are around 2,000 stores today.
This is a loss of around 700, or 25 per cent, since 2010.
Now, before anyone cries wolf, hold your horses!
This reduction needs further clarification because
some of it can be attributed to Jeweller’s change in the
definition or classification of a ‘jewellery store’ caused
by enormous structural shifts in the industry over the
past decade.
The 2010 study was an attempt to measure the
number of stores that sell jewellery to consumers,
Custom made and bespoke jewellery has become
an increasingly important category for Australia's
independent jewellery retailers in the past decade.
and in doing so, there was a need to define different
business archetypes.
These included fine and fashion jewellery, chain
stores, and stores classified as brand-only and/or
flagship locations. To measure anything, it must first
be defined.
In 2010, the definition of a jewellery retailer included
businesses that were not ‘traditional stores’. For
example, our data included jewellers and designers
who operated from what we defined as ‘upstairs
premises’ or studios and workshops.
Many, if not most, of these businesses legitimately deal
with the public as customers and specialise in niche
categories such as engagement, bridal jewellery, and
bespoke design.
Most operated from CBD locations in capital cities and
were (and still are) located in the ‘jewellery buildings’
such as the Century and Manchester buildings in
Melbourne and the Dymocks and Trust buildings in
Sydney, to name just a few.
Other capital cities have similar buildings, harking
back to a period when jewellers and suppliers
congregated in one location for convenience and
security. A jeweller could source and purchase
materials, such as diamonds and gemstones, by
visiting a supplier on another floor – without the
need to leave the building.
These businesses were identified as ‘Retailer - No
storefront’ and included in the store counts.
Changing times
CHART 2:
2023 INDEPENDENTS BY STATE
State # %
NSW 754 37.51%
VIC 499 24.83%
QLD 329 16.37%
WA 187 9.30%
SA 136 6.77%
TAS 61 3.03%
ACT 30 1.49%
NT 14 0.70%
TOTAL 2,010 100%
Chart compares independent jewellery stores
state-by-state and the percentage these stores
represent within Australia's total count.
While it was deemed appropriate to include these
businesses in the 2010 store counts, Jeweller has
decided to exclude them in the latest study due to
changes in the industry, some of which are COVIDrelated.
For example, consider the distinction between a
‘storefront retailer’ on the high street and one that
operated without a storefront was a little blurred in
2010. In that case, you must consider what the internet
has done to that blurred line 13 years later.
There are other reasons for redefining a jewellery store
- explained below - and to maintain a more accurate
reading on the industry, it is more appropriate to
measure ‘traditional retail stores’, which Jeweller now
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