Why are Jewelry Stores Failing?
1,629 jewelry stores closed in 2016- an increase of 43% from the previous year. What is changing in the jewelry market, and how can retailers keep up & stay open?
- Changing customers. With $200 billion in annual buying power, the 80 million American millennials are key influencers with their peers as well as older generations. Many industries struggle to effectively advertise to millennials, and it’s time for jewelry retailers to change it up. The way consumers shop has changed across all generations, and even brick and mortar stores need to realize the power of brand loyalty. Brand loyalty is not what it used to be- consumers are able to research every facet of your store before they ever walk through the door. Your stores must be staffed and stocked appropriately at all times. All it takes is one negative online review for millennials to seek out the next jewelry retailer down the street.
- Work environment. As millennials require a change in advertising strategies, they are also looking for a different work environment. To keep the best salespeople, managers need to be effective and personable and provide clear and accurate measurements of personal sales performance. With encouragement and clear expectations on sales goals and projections, employee turnover remains low, saving retailers time and money on costly hiring and training.
- Lean into tech. Keeping a business afloat demands near constant supervision on all aspects of a business, from in-store sales, inventory, employee schedule optimization, and customer habits. Retailers should be tracking not only what is being bought but also what’s next- when might this customer return? If an engagement ring was purchased, will the happy couple be back for wedding bands? Almost half (40%) of customers do not make a purchase in the same year they first begin to shop. Of those who make a satisfactory purchase, 75% do not return for their next purchase. Jewelry stores must strengthen their customer relationships through personal and organic interactions to retain those flighty consumers. Automated systems can track customer needs and allow managers to create personalized sales campaigns to turn one-time customers into brand loyalists.
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