Jewelers around the country reported a successful Valentine's Day, with a number noting that this year’s holiday saw much better traffic.
While bad weather battered some parts of the country and impeded in-store Valentine’s Day sales, the majority of jewelers had nothing but love for the Feb. 14 holiday.
Of course, heart-shaped pendants, including diamond-studded versions, were popular, as were diamond earrings and engagement rings. A few jewelers even reported selling a fair amount of gold in spite of the metal’s price.
According to the National Retail Federation, the average person will spend $116.21 this year on Valentine’s Day merchandise, an increase of 12.8 percent compared to 2010. American consumers are expected to shell out $3.5 billion on jewelry this year, up from $3 billion last year.
More than 17 percent of people will buy jewelry for their loved one, the federation found.
According to Rapaport, market research firm IBISWorld expects that U.S. jewelry sales for Valentine's Day will increase about 11 percent from 2010 to $1.46 billion. IBISWorld measured seven key gift categories including jewelry, cards, candy, flowers, clothing, dining out and travel. In all, the group expects total sales to increase almost 6 percent to $18.6 billion.
“Luxury spending is already on the rise, so it will come as no surprise that bracelets, earrings, necklaces and rings will be the go-to gift choice for many Americans,” said IBISWorld retail industry analyst Nikoleta Panteva. “This year, IBISWorld expects jewelry to make up 7.8 percent of all Valentine’s Day sales, making its way back to pre-recessionary levels.”
For this special Valentine’s Day edition of National Jeweler’s Exclusive Sales Report, editors asked jewelers across the country about their sales leading up to Valentine’s Day. Retailers in each of the country’s five regions - Northeast, Southeast, Midwest, South Central and West - were interviewed.
NORTHEAST
Undeterred by a snowy weekend, Valentine’s Day shoppers still made their way to Ralph Miller Jewelers & Gallery in Erie, Pa.
“It was very successful for us,” Daniel Niebauer, vice president at Ralph Miller, said. “We did as good as we could, despite the weather.”
Ruby and diamond earrings and heart items, such as diamond hearts, were big sellers, Niebauer said, adding that this year’s sales figures are just about the same as 2010.
In New Jersey, Jay Roberts Jeweler in Marlton reported activity from last week all the way up to Monday. Jake Spigelman, owner, said that while the numbers aren’t in yet, he believes his results beat last year’s.
John Hardy, Lagos, Michele watches and silver lines were major sellers, Spigelman said, noting that moderately priced items sell more volume on price-pointed holidays, such as Valentine’s Day.
“We’re optimistically positive that the year is going to be better than last year,” Spigelman said.
SOUTHEAST
The Cumberland Diamond Exchange in Smyrna, Ga., is normally closed Sundays and Mondays throughout the year, but decided to stay open throughout those days this week to cater to Valentine’s Day jewelry buyers.
“We made the right decision,” Prentice Johnson, manager at the store, said.
Bridal jewelry, loose stones, and items from the sterling and 18-karat Lorenzo collection were big sellers this weekend. Chamilia beads also did well, Johnson said, adding that the store’s figures were up from last year’s Valentine’s Day.
Just south in Valdosta, Ga., Paxton Morris, owner of Girardin fine jewelry, said the holiday went “very well” for the store, with Saturday and Monday the busiest days.
“[Sales were] late, but it really happened over a couple of days,” Morris said.
He added that sales were better than last year, with diamond pendants, diamond stud earrings and watches in popular demand this Valentine’s.
“It’s promising,” Morris said. “We’re very optimistic about the year.”
MIDWEST
Valentine’s Day business at Anshus Jewelers in Menomonie, Wisc., was about on par with last year, which owner John Anshus described as a “fairly good year.”
“We didn’t have a lot of traffic, but we made a couple of very good sales,” he said.
The store sold many pairs of diamond earrings, along with diamond pendants, hearts and crosses. Gold heart bracelets also were strong sellers, despite the metal’s high per-ounce price. “It was the gold sales that really brought us up,” he said.
Anshus added that Valentine’s Day business didn’t pick up until the last minute due to the extreme cold spell - think temperatures hovering around 20 below - that gripped the region and didn’t let up until recently.
At Metal Works Fine Jewelry in Yorktown, Ind., owner Gene Gragg also reported his customers going for the gold jewelry. “Given the price of gold you would think they’d be running away from it. But people just like gold and if they can afford it,” he said.
He said earrings were a popular gift item in his store, in both yellow and white gold and set with colored gemstones, not diamonds. Garnet was the colored gemstone of choice. “You almost get the look of a ruby, but they’re much cheaper,” he said.
Overall, Gragg said Valentine’s Day sales at his custom shop were excellent. “I was doing Christmas numbers at Valentine’s. It was amazing,” he said.
SOUTH CENTRAL
Two feet of snow less than two weeks before Valentine’s Day hampered sales at Cunningham Jewelers in not-normally-as-snowy Tulsa, Okla., said owner Vicki Cunningham.
“It really slowed traffic down,” she said, adding that while the store did make Valentine’s Day sales, business was down as compared to last year. Also hurting her this holiday was a nearby store’s 70 percent off, going-out-of-business sale.
“For the first time, I can’t say we sold an engagement ring for Valentine’s Day,” Cunningham said. She said the store has been struggling with its bridal business for a while, and she believes they are losing out to e-tailers.
“I think they’re buying online,” she said.
At C. Aaron Penaloza Jewelers in San Antonio, Texas, pieces crafted of silver and gold from the Lorenzo line were popular this Valentine’s Day. Owner Aaron Penaloza said overall this Valentine’s Day was on par with last year’s, which was a good holiday for the store.
“It went well, not great, nothing spectacular, but we did pretty good,” he said.
WEST
At Hart Jewelers in Grants Pass, Ore., Tom Hart said his Valentine’s Day sales are up compared to last year, even with the absence of a special promotion. He said most customers purchased small, lower-end items in sterling silver, as well as diamond earrings and engagement rings.
In Denver, John Molberg, owner of two-person custom shop Molberg Jewelers, said while he had a number of customers in his shop over the weekend, he made only two Valentine’s Day-related sales: a ruby necklace and a gold heart. “I made sales, but I don’t think they were related to Valentine’s Day,” he said.
Molberg said he has an older clientele who are not as likely to celebrate the holiday and he generally doesn’t see a lot of Valentine’s Day traffic.
Official results of Saint Valentine's Day jewelry sales will be posted later, but it is already fairly clear that they have outstripped last year's sales and that overall consumer demand for these goods in the United States started to recover after the crisis.
Olga Patseva, Editor of the Rough&Polished American Bureau in San Diego
