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Industry News: Crime Is Down But Stolen Value Up; Average Engagement Ring Price Rises; More March 18, 2015 (0 comments)

JSA: Crime Incidents Down, But Smash-And-Grab Value Up in 2014

New York, NY—The number of total crimes against the jewelry industry dropped slightly in 2014, but the dollar value of all losses rose by 17%, according to figures released last week by the Jewelers Security Alliance. 2014 saw 1,381 total crimes committed against the industry (both retail and wholesale), 2.4% fewer than the 1,414 that occurred in 2013. But dollar losses rose from $66.5 million in 2013 to $77.8 million in 2014, tracking with a sharp increase in smash-and-grab robberies of high-end watches and diamonds.

The good news is that both violent crime and gun use were down last year, as were kidnappings. There were three jewelry-related homicides in 2014, compared to 15 in 2013 and, in previous years, sometimes as many as 50 members of the industry killed by criminals. There was only one home invasion last year, compared with two the prior year. Arrests also soared from 422 in 2013 to 694 in 2014, an increase of 64.5%. This was due to intense work and cooperation by the FBI and local police in investigating major gangs operating throughout the U.S., including continuing investigations of crimes committed in prior years.

Another positive trend was a 43% drop in gun use during jewelry robberies last year. In 2014, guns were displayed in only 36.5% of robberies, compared with 2013 figures, where 65% of jewelry robberies had a visible gun present. John Kennedy, president of JSA, attributes the drop to tighter gun laws that mandate stricter penalties for crimes involving a gun.

The bad news is that smash-and-grab crimes rocketed: 2014 saw a 77% increase in the number of smash-and-grabs, due in large part to two gangs operating independently in Detroit and California. The lion’s share of these—49 out of 110 total—occurred at mall-based jewelers, reinforcing that jewelers in malls are no better protected from crime than jewelry stores with direct access to outside, such as strip centers or standalone stores. In fact, mall jewelers may actually be easier targets because few have closed doors with buzzers, and the perpetrators can blend into the crowd of mall shoppers after the crime.

26 of last year’s 110 smash-and-grabs last year happened in standalone stores, 13 in strip centers, 12 in downtown stores, six in department stores, and one in a hotel-based store. The other three are unknown.

Rooftop burglaries were up 6% last year but three-minute burglaries were down 33%. These crimes are most common when jewelry is left out in a showcase overnight, says JSA.

The best deterrents against smash-and-grab robbery are door buzzers and laminated glass showcases, which are harder to break than standard glass cases. Good security cameras also can help identify potential thieves casing a store and are useful in sharing that information with other jewelers. Sharing information is vital to combating crime, says JSA.

To read JSA’ full report on 2014 crime statistics, click here.

 

The Knot: Average Engagement Ring Cost Up 4.4%

Merrick, NY—The average engagement ring cost $5,855 in 2014, according to a survey conducted by The Knot. This figure represents a 4.4% increase over 2013. The national average cost of a wedding (excluding honeymoon) was $31,213 for 136 guests. Additionally, the average age of both bride and groom has crept up: for brides, it’s now 29 and for grooms, 31.

Here are some other statistics from The Knot’s survey:

• Average spent on a wedding dress: $1,357
• Average number of bridesmaids and groomsmen: 4 to 5 each
• Most popular month to get engaged: December (16%)
• Average engagement: 14 months
• Most popular month for a wedding: June (15%) followed by October (14%)
• Popular wedding colors: Ivory/White (44%), Blue (37%), Pink (28%), Metallics (26%), Purple (23%)
• Destination weddings: 24%
• Couples using smartphones for planning: 61%.
• 40% of couples choose personalized venues like historic homes and farms.
• Spending shifts from ceremony to reception. Spending is up for catering, musicians, cocktail hour, and cake; and down for pianists/organists for their ceremony.
• 28% of couples held their ceremony in a religious institution in 2014, down from 41% in 2009.
• 75% of couples send out save-the-date cards well in advance and 50% of those are professionally created.
• On average, the bride's parents contribute 43% of the wedding cost. The bride and groom contribute 43%, and the groom's parents contribute 12% (others account for the remaining 2%). Only 12% of couples pay for the wedding entirely themselves.
• In 2014, 45% of couples went over budget.

 

Jewelers of America Applauds Marketplace Fairness Act of 2015

New York, NY – Jewelers of America (JA) welcomed the United States Senate’s introduction of the Marketplace Fairness Act of 2015 (MFA) and supports ongoing bipartisan efforts to pass e-fairness legislation. The legislation would close an Internet sales tax loophole that has hurt traditional jewelry businesses.

“Jewelers of America applauds the Senate introduction this important legislation that keeps the momentum on this critical issue alive,” says JA president and CEO David J. Bonaparte.

The Marketplace Fairness Act gives states the option to require the collection of sales and use taxes already owed by out-of-state businesses, rather than rely on consumers to remit those taxes. Currently, brick-and-mortar businesses collect sales and use taxes from in-store purchases, but many online and remote retailers do not. If enacted into law, the measure would give states the option to require the collection of these taxes by out-of-state sellers, if the state simplifies their sales and use tax systems. The Senate passed a previous version of the bill in 2013.

Jewelers of America is a longtime proponent of sales tax fairness, supporting efforts to enact legislation at both federal and state levels. Jewelers are encouraged to use JA’s Legislative Advocacy Center at www.jewelers.org/advocacycenter, to easily contact their representatives via email and urge them to support sales tax fairness today.

 

Charlotte Preston Catalysts to Close

St. Paul, Minnesota —Charlotte Preston Catalysts, which has created professional education programs for a wide variety of jewelry industry organizations, is ceasing operations at the end of this month. Owner Charlotte Preston, whose 30 years of experience in the industry have helped benefit thousands of jewelers through seminars at AGS Conclave, AGTA GemFair, RJO, the JCK Shows and more, says, “To the many speakers who readily gave time and information, to the many clients who found value in offering education, and to the many jewelers who look to make their contributions to their communities meaningful in their roles as business leaders, thank you.”

She also was the facilitator of the Jewelers for Progress group since 2003. 

Preston, who is battling cancer, invites friends to stay in touch via her email: getsitdone@aol.com.

 

JBT Names Officers And Directors

Warwick, RI—The Jewelers Board of Trade has elected the following slate of officers and directors to its board.

Serving a one-year term are:  

• Chairman: Richard Weisenfeld, Pranda North America, Inc., Cranston, RI
• First Vice-Chairman: Todd Wolleman, Leo Wolleman, Inc., New York, NY
• Second Vice-Chairman: Michael L. Kaplan, Rocket Jewelry Box, Inc., Bronx, NY
• President: Dione D. Kenyon
• Secretary: Brenda M. Pimentel
• Treasurer: Alisa D. Dumond

Newly elected for a two-year term are Danielle Ingwer Cohen, Leo Ingwer Inc., New York, NY, and Jared Ashland, Jewelers Mutual Insurance Co., (Inc.), Neenah, WI.

Re-elected for a period of two years are: 

• Phyllis Bergman, Mercury Ring (Div. of Interjewel USA, Inc.), New York, NY
• Brian D. Fleming, Carla Corporation, E. Providence, RI
• Kevin Green, Seiko Corporation of America, Mahwah, NJ
• Michael L. Kaplan, Rocket Jewelry Box, Inc., Bronx, NY
• Richard Katz, Samuel Aaron, Inc., Long Island City, NY
• Richard LeStage, LeStage Manufacturing Co., Attleboro Falls, MA
• Avi Raz, A & Z Pearls, Inc., Los Angeles, CA
• Pinny Rubin, Quality Gold Inc., Fairfield, OH

Board members continuing existing terms are:

• Ann S. Arnold, Arnold Advisory Group, LLC, Norwood, NJ
• Anthony J. Capuano, HSBC Bank USA, N.A., Rehoboth, MA
• Edward N. DeCristofaro, LDC, Inc., E. Providence, RI
• Philip Holden, The Gordon Company, Inc., Ft. Lauderdale, FL
• Basant Johari, Kuber Manufacturing, Inc., New York, NY
• Roderick H. Lichtenfels, W. R. Cobb Company, E. Providence, RI
• Richard Weisenfeld, Pranda North America, Inc., Cranston, RI
• Todd Wolleman, Leo Wolleman, Inc., New York, NY

 Advisory Board members Richard Greenwood of A. F. Greenwood Co., Inc., New York, NY and F. Daniel Pharr of Pharr Valuation & Business Svcs. LLC, Richmond, VA, continue to serve.

 

JFC Partners With 2015 Bank of America Chicago Marathon

New York, NY—Jewelers for Children has guaranteed entries for the 2015 Bank of America Chicago Marathon to be held on October 11, 2015. This means that runners participating in the Chicago Marathon can not only run in one of the Abbott World Marathon Majors, but they can raise funds for JFC at the same time.

The Bank of America Chicago Marathon annually attracts participants from across the country and around the world.  The Chicago Marathon has more than 10,000 runners supporting 172 charity organizations.  Since 2002, more than $ 115 million has been raised for those charities.

Participants in the Bank of America Chicago Marathon can select to raise funds for Jewelers for Children. As an affiliate charity, JFC has access to five guaranteed entries that will be given on a first-come, first-served basis to registrants who sign up with the charity. Runners who are guaranteed spot in the Marathon, or those that secure a spot during the lottery period from March 10 to April 21 can build a Jewelers for Children fundraising page and ask their family, friends, and acquaintances to support their effort by donating to Jewelers for Children. 

All participants are being asked to raise at least $ 1,000 for JFC and will be required to meet all the eligibility and participation requirements of the Bank of America Chicago Marathon. Anyone interested in participating can find all the information on the JFC website at or by contacting JFC.

 

Sotheby's Names New CEO and Chairman

New York, NY--Sotheby's (NYSE: BID) has named Tad Smith as president and CEO, effective March 31, 2015. Additionally, the auction house has announced it will separate the roles of board chairman from CEO, and has named Domenico De Sole, former chairman of the Gucci Group, to chair the board. De Sole has been a member of the Sotheby’s board since 2013. As president, Smith also will have a seat on the board.

Smith comes to Sotheby’s from the Madison Square Garden Company, where he oversaw overall strategy and day-to-day operations of MSG Sports, MSG Media, and MSG Entertainment. His varied background includes stints at Cablevision Systems Corp., Reed Elsevier (where he headed the B2B publishing division that at one time included JCK magazine), Starwood Hotels and Resorts, BMG Entertainment, and McKinsey & Company’s Los Angeles office.