2011: The Golden Year

IMG Average Sales 2011

As we prepare for Las Vegas I think we should look back and reflect on last year. 2011 sales were nothing short of stunning for our clients. With the exception of only a couple of markets, growth was across the country with the group averaging crazy monthly numbers:

Here are the monthly numbers:
January:  19.78%
February: 23.13%
March: 26.03%
April: 6.42%
May: 18.37%
June; 12.24%
July: 13.70%
August: 36.74%
September: 26.08%
October: 13.84%
November: 15.70%
December: 8.45%

Even more impressive, these growth figures are on top of the rebound we experienced in 2010. The sales growth came in four key areas: Bridal, Pandora, Rolex and Gold. To be more specific, bridal business and Rolex sales were simply returning to the normal levels pre 2009 while Pandora sales continued it’s amazing climb last year for most independents. The wild card here was gold buying. Gold spiked in price in the fourth quarter of 2010 resulting strong after Christmas selling in the first quarter of 2011. Note the spike in our growth in the chart above January, February and March. Gold peaked again in July and August, again note the spike in sales. I think August’s sales really benefitted by heavy selling of gold, bought in June, July and August and sold to refiners at the end of the summer. The point is we simply can not overstate the power of gold on last years growth.

So as we look forward to the Las Vegas show and the rest of 2012, remember, your check book has been in the black because of all the gold you bought back!  Remind yourself, again, that you knew this gold thing would only roll for so long, right? Now I’m not saying it’s totally over. Who knows what the price of gold is going to be six months from now? In very fundamental ways our business will never be the same. I think that gold buying, legacy diamonds and estate jewelry are now a permanent part of being a fine jeweler. My point is only that our real and primary job is SELLING fine jewelry, not buying it.

Analyze your real inventory turn and focus on that because we all know that legitimate long term growth only comes from building your store’s customer base and your brand. That means have the products people want to BUY, not sell. It means being ahead of the curve with fresh, clean, exciting inventory at price points you can sell every day. It means driving your market with great advertising that puts more prospects in your store. It means hiring and training the best people and being the best jeweler in town.

My point is this, don’t go crazy in Vegas. Don’t go back the the “overbuying” days pre 2008. Focus on the stock you need and sell every week. Focus on those vendors who have the strength to be there for you. If you are considering a new line, if you don’t see it selling daily and generating over $50,000 a year, why would you even bother? Focus on game changing brands that will lead your market and get your staff excited again! Most importantly…set an open to buy and stick to it. 2011 was a golden year. Let’s keep 2012…in the black.