According to statistics released by the Jewelers Board of Trade (JBT), North American jewellery company closures fell 19 per cent from last year. This brings excellent for retailers facing a challenging climate.
Up until the first quarter of this year, industry closures were occurring at an epic pace. Last year, there was a whopping fifty per cent increase in the number of businesses that were shutting down.
This being said, businesses still shut down this quarter, with 334 companies dropping out. This is down from 410 last year. Retail jewellers made up most of this number, at 263, while 45 wholesalers closed down and 26 manufacturers called it quits.
Despite this, Anthony Capuano, president of the JBT, warns against reading too much into this data.
“It’s very hard to say there’s a trend there,” he explains. “The numbers are positive in that the rate of closures seems to have abated a bit. I’m encouraged. I hope it continues. But it’s a little too early to say there’s a trend of declining closures.”
What’s more, fewer businesses entered the industry this year: the report notes that 48 new businesses were listed across North America, dropping 34 per cent from the prior year.
One thing’s for sure: this is sure to be another interesting year for the jewellery business.
Author: Canadian Jeweller Magazine Staff
Canadian Jeweller Magazine Staff is the shared byline for reporting filed by the magazine's editorial desk. Founded in 1879, Canadian Jeweller is the longest running jewellery business publication in Canada, covering market reporting, retail strategy, watches, diamonds, coloured gemstones and the commerce of the Canadian jewellery trade. Work published under this byline is edited and verified by the Canadian Jeweller editorial team in Toronto.
