As the retail landscape continues to shift, jewellery store owners face unique challenges and opportunities in reaching customers and driving sales. According to a recent study by the Retail Council of Canada and Leger 360, which surveyed over 750 small and medium-sized retailers across the country, there are actionable insights for jewellers looking to thrive. Titled Navigating the Future: A Study of Sales Strategies and Challenges for Canada’s Retail SMBs, this study sheds light on seven key trends shaping the future of retail, offering valuable lessons for businesses ready to refine their strategies.
1. Embrace Multichannel Sales to Reach More Customers
The research reveals that 60% of small and medium-sized businesses (SMBs) use more than one sales channel, with 34% using at least three. For jewellers, this means that relying solely on in-store sales may limit potential growth. By adding an online store, selling on jewellery-friendly platforms, or engaging customers on social media, can cater to different customer preferences. The goal is to make your products accessible wherever your potential customers are shopping, and for most jewellers, that’s across multiple channels.
Tip for Jewellers: Using Instagram and Pinterest for “Click-to-Buy” options can further boost your reach, allowing customers to browse and purchase directly from social media platforms.
2. Focus on the Right Sales Channels
The study found that for Canadian SMBs, the top sales channels include Brick & Mortar (50%), Web Stores (41%), and Online Marketplaces (33%). Although brick-and-mortar stores remain critical for jewellers—given the importance of customer experience in trying on and viewing jewellery pieces in person—having a robust online presence is key to reaching a wider audience.
Ensure your physical store offers a unique, engaging experience that can’t be replicated online, while maintaining an attractive, user-friendly website. High-quality photos and detailed product descriptions are crucial online, as they give customers confidence in purchasing items they can’t physically touch.
Diversify Your Revenue Streams
Among SMBs, revenue generation is driven by four main channels: Brick & Mortar stores (31%), Web Stores (15%), Online Marketplaces (14%), and Click-to-Buy Social channels (11%). For jewelry stores, building a diversified sales strategy helps maintain consistent revenue across seasons and reach different customer demographics. Customers who prefer to buy in-store for high-value items may differ from those looking for affordable, giftable jewellery online.
If you have an in-store clientele but no web presence, you could be missing out on younger or long-distance customers. Explore additional revenue streams through website sales, live streaming events, or limited-time online offers to create exclusivity and drive excitement for both in-store and online shoppers.
Leverage Digital Tools to Improve Customer Experience and Efficiency
An impressive 88% of SMBs use at least one digital tool, with the most popular being payment processing systems, social media management, and mobile payment systems. Jewellers, digital tools can simplify daily operations and elevate customer service. Payment processing systems, for example, can enhance convenience for customers, while social media management tools allow for consistent, engaging communication with your audience.
The study highlights that 94% of SMBs see integrating their digital tools as essential for business success.
Look for digital solutions that integrate with your existing platforms. Integrated POS and inventory systems will help you avoid the issue of overselling popular items, and integrated customer management tools can offer insights into buyer behaviour, helping you tailor future marketing efforts.
Look Forward with Confidence
Despite recent challenges, nearly half of Canadian SMBs expect an increase in sales in 2024. Notably, businesses using multiple channels and digital tools expressed higher levels of optimism. For store owners, the takeaway is clear: businesses that adopt a forward-thinking, multichannel approach are more likely to experience growth, even in an uncertain market.
As you plan for the future, explore options for expanding your digital presence, refining your brand message, and integrating additional channels into your sales strategy. The more adaptable and tech-savvy your business is, the better positioned it will be to weather industry shifts and capture new opportunities.
Final Thoughts for Jewelry Store Owners
The findings from this study underscore the adaptability and resilience of Canada’s SMBs, including jewelry retailers who are eager to innovate. By embracing a multichannel sales strategy, utilizing digital tools, and integrating business operations, jewelry stores can enhance customer satisfaction and stay competitive in an evolving market. In an industry where aesthetics, experience, and trust are paramount, these strategies can help jewelry retailers not only survive but thrive in today’s diverse retail landscape.
By investing in a balanced strategy that combines the strengths of both physical and digital spaces, jewellers can build a sustainable business that meets the demands of a modern, increasingly online customer base.
