2010: The Best Growth Year Ever?

The numbers are in and the first five months of 2010 have been better than expected and just what the doctor ordered. As you will recall, in January 2009 I told all of my clients that this downturn was the best opportunity we will ever see to build market share for those stores bold and courageous enough go for it. The timing was perfect and in March the stock market hit bottom. The Great Recession was here and consumer spending fell off a cliff. I told you then start buying gold and advertise only bridal. Those will be the only markets in this downturn. We renegotiated our media deals, in some cases at 50 cents on the dollar and doubled our reach and frequency on even lower ad spending, all while our competition, in most cases, went silent. I love the smell of napalm in the morning.

By the end of 2009 most IMG store were getting solidly back on track and in 2010 they have really accelerated, in many cases blowing our competition out of the water. Here are the nationwide numbers for our stores:

January: 3.166% growth – a very weak start after a so-so holiday…but it was in the black.
February: 17.66% growth– again a weaker than we wanted, but it looked OK against 2009.
March: 65.07% growth– Up against the worst March in history we all looked good…but we also knew were on a roll!
April: 64.29% growth– Hey somethings happening here and it’s starting to smell like the real thing…recovery!
May: 25.36% growth– Confirmation that the growth was real. In fact several stores posted best ever May numbers!

So far… so good.

The average store in the Ideal Marketing Group is up 35.11% in 2010, as it should be, well ahead of the average US jeweler. The reason? Most of our stores have a market dominant media position and are the finest stores in their markets. Those stores that heeded my clarion call for market domination in 2009 have done the best. Those, who for whatever reason, held back have also had much weaker growth in 2010. This trend will only continue going forward. The internet and chains like Jared will make it almost impossible for the shade tree independent to survive. If you are not dedicated to being the number one independent jeweler in your market, your business will continue to decline.

What about the rest of 2010?

As for the rest of the year, June will not be as strong as May because of weakening consumer spending and I see July even softer. That being said, I do not see a double dip recession. I see a real resurgence of consumer confidence in the October, November and December as angry voters force dramatic change in Washington and State Houses across the country, signaling a return to a rational fiscal policy. The American public has no confidence in Obama. He won’t matter after November. That will rally the US stock market and strengthen the US dollar, bolstering consumer confidence. I expect the Holiday selling season will be 15-20% above 2009 on stronger large ticket and Rolex sales. Carat “plus” diamonds will be back in demand, with solid 2 carat sales back in most stores.

Well that’s all for now. Remember, your success really depends on you and your actions, no one else. In physics, relationships, life and especially business, for every action there is an equal reaction. Take action. Take back your market. Take your future.