Store Closures Continue, But Openings Pick Up

New York—For the first time in a long time, the Jewelers Board of Trade’s quarterly data showed an uptick in the number of new jewelry businesses in the United States.

It was a small increase, and the slow, steady reduction in the overall number of retailers, manufacturers and wholesalers in North America continues.

The JBT’s number of total listings for the U.S. was 25,667 at the end of the first quarter, down 4 percent year-over-year. Counting Canada, total listings stand at 26,903.

But as new JBT President Richard Weisenfeld pointed out Friday, the rate of closures remains lower than what it was in the post-recession spike of 2014-2016.

“It seems like the shrinkage has slowed a little,” he said. “It will be interesting to see if that continues.”

In addition, preliminary results indicate jewelry sales are up so far in 2018, he said, meaning better results for the retailers that remain.

Closings and Openings
The number of U.S. jewelry businesses—meaning retailers, wholesalers and manufacturers—that closed in the first quarter totaled 288, up slightly (4 percent) from 277 in the same period last year.

Among retailers, closings numbered 241, an 11 percent increase from 217 in the same period last year.

The continuing closure of jewelry stores is not happening in a vacuum but, rather, against a backdrop of changes in a market that is “over-stored” for the digital age. The U.S. has about 24 square feet of retail space per capita, compared with, for example, about 5 square feet in the E.U., according to a recent report from PricewaterhouseCoopers LLP.

Signet is set to close a net of about 165 stores this year, yes, but they are not alone.

Macy’s, Sears, Sam’s Club, GNC and Foot Locker are among the dozens of retailers that have announced plans to shutter locations nationwide, and some major retailers are exiting the market entirely. After creating generations of Toys “R” Us kids, the retailer is going out of business, as is department store chain Bon-Ton.

“There’s still going to be a lot of stores closing,” Weisenfeld said. “(But) it’s not just the jewelry business; it’s every business.”

Jewelry business consolidation and bankruptcies also were up in the U.S. in Q1.

Consolidations (meaning a sale or merger) among retailers, wholesalers and manufacturers totaled 45, up from 34 in the same period last year, and bankruptcies increased from 318 to 343.

JBT data shows a similar pattern in Canada: business closings were up from 15