Articles and News
Industry News From JBT, Platinum Guild, Edge Retail Academy, JVC, Silver Promotion Service, AGTA April 06, 2016 (0 comments)
JBT Names New President
Warwick, RI—The Jewelers Board of Trade has named Anthony J. Capuano (left) to succeed Dione Kenyon as president, effective this month. Kenyon announced her retirement plans last year.
Capuano brings over 35 years of experience in credit and lending to JBT, including more than 25 years dedicated to the diamond and jewelry industry. He joins JBT From HSBC Bank N.A., a major lender to the diamond and jewelry industry. While at HSBC he held the titles of vice president and senior relationship manager, with responsibility for management and business development of the bank's diamond and jewelry portfolio in the New York market.
Capuano has served on the JBT board of directors for 16 years, making him highly knowledgeable about the association, its staff, mission, and membership base. He also has been involved in the industry via membership in the International Precious Metals Institute and serves on boards in his local community. He earned his B.A. and M.B.A. from the University of Rhode Island, and resides in Pawtucket, RI, with his wife Linda, and two children.
Capuano said, "I am both pleased and honored to join the JBT as its president, and look forward to working with our talented staff, board and membership, while continuing to serve and advance the industry and an organization that I have enjoyed being a part of for so many years."
U.S. Platinum Jewelry Sales Grew 11%; Positive Outlook Continues For 2016
New York, NY—Platinum Guild International released its third annual Retail Barometer Tuesday. The study, conducted globally by independent platinum market experts and industry analysts, tracked the consumer retail sales data of platinum jewelry in 2015 and offered projections for 2016 in four main international markets: the United States, China, India, and Japan. The research was conducted between January and February 2016.
In the United States, platinum jewelry sales rose approximately 10% by ounces in 2015 compared to 2014. This is the third consecutive rise for the platinum jewelry market in the United States, following increases of 11% in 2013 and 8% in 2014. These figures were based on an independent study.
Platinum’s double-digit increase contrasts with the much more modest growth in the U.S. fine jewelry market in general, reported to be approximately 2%. Specialty jewelry stores (the primary channel of distribution for platinum jewelry) fared significantly better, reporting overall sales growth of 5.4%.
Contributing factors to 2015 platinum results reflect the following key drivers:
The lower platinum price stimulated growth: In 2015, the price of platinum, and its relationship to the price of gold, had an impact on growth in platinum sales. The average price of platinum ($1053) was 10% lower than the average gold price of $1160. Gold prices ranged from $1049 - $1295 in 2015. This market scenario resulted in a much smaller delta between gold and platinum finished jewelry prices at retail.
Increased platinum stock levels at retail: The current metal price scenario has motivated both manufacturers and retailers to increase their platinum offerings in store and online.
Online product offerings and sales expanding: Jewelry retailers are continuing to grow their business with e-commerce offerings. Most pre-purchase research is done online and web-based and hybrid retailers (website & brick and mortar showrooms/retail partners) have increased the presence of platinum product and education information on their websites.
Increased visibility of platinum jewelry at major chains: While independent specialty jewelers are the largest distribution channel for platinum jewelry in the U.S., there are now more than 300 stores at major jewelry chains carrying a platinum bridal jewelry assortment. Just a few years ago, platinum was practically non-existent at the majors with the exception of a small number of special orders.
Platinum jewelry imports experienced a sharp increase: Imports of finished platinum jewelry increased by approximately 50% in 2015 indicating a consistent increase in demand for platinum at retail across multiple distribution channels.
U.S. Silver Sales Exceptionally Strong In 2015
New York. NY—For the seventh consecutive year, silver jewelry sales in the United States have grown, and were exceptionally strong in 2015 with 60% of jewelry retailers reporting increased sales in the category, according to a survey conducted on behalf of the Silver Institute’s Silver Promotion Service (SPS). The survey results also confirmed that silver jewelry continues to be an increasingly important category for many retailers, both in driving sales and providing margin.
Highlights from the 2015 survey include:
- The average growth in 2015 for silver jewelry sales was 15%.
- Retailers said their silver jewelry sales, as a percentage of their overall jewelry sales, were on average 35% of their unit volume and 27% of their dollar volume.
- 45% of retailers said silver experienced the best turnover rate in 2015 followed by diamond jewelry at 22%, bridal at 17%, gold and platinum at 4%.
- 45% percent of retailers rated silver as their best-maintained margin category during the holiday season. This compares with 27% who cited diamond jewelry, 16% who named bridal, 9% who named gold, and 3% who named platinum.
- 87% of retailers say they are optimistic that the current silver surge will continue.
SPS Director Michael Barlerin said, “The Silver Promotion Service was obviously gratified by what the survey demonstrated. Silver’s outstanding performance was the result of multiple inter-related factors, including the fact that 57% of retailers reported they had increased their inventory on average of 21%.”
The survey, conducted by National Jeweler/Jewelers of America, was fielded in February/March of this year. This was the seventh consecutive year that SPS has conducted such a survey.
JVC CEO Cecilia Gardner To Step Down In 2017
New York, NY—Cecilia Gardner, CEO/president and general counsel of the Jewelers Vigilance Committee, has announced plans to step down from her role at the beginning of 2017, after the planned celebration of JVC’s 100th year.
“It was time,” said Gardner, emphasizing that she loves the industry and wants to remain involved with JVC and the industry on some level. Meanwhile, JVC senior counsel Suzan Flamm, who submitted her resignation some weeks ago, leaves April 14, Gardner told The Centurion.
Cecilia Gardner
Discussions are ongoing with the executive committee to determine the scope of a continued role for Gardner at JVC; a review of JVC’s overall staffing requirements are being reviewed as it looks to secure leadership and management for the future.
Steve Kaiser, president of the JVC board, said, “We are so appreciative of Cecilia’s contributions to the JVC during her 18-year tenure with the organization. She has been a great advocate for the jewelry industry and we do hope to continue to work with her in the future.”
Gardner said, “It has been my privilege and honor to serve this organization for so long. This decision assures the continuity of our important work and is in the best interest of the organization and our members. Re-setting staffing needs in light of JVC’s increasingly prominent role in the industry is appropriate, and guarantees continued success for the next 100 years.”
Edge Retail Academy Adds Three Consultants In Key Business Areas
Las Vegas, NV—The Edge Retail Academy (ERA) has added three new consultants with expertise in financial analysis, business growth strategy, and client mentoring to its team.
Phyllis Casey is a financial analyst with more than 25 years of experience in credit risk management, client relations, business development, and global commodity trading. A graduate of Providence College with a major in mathematics and economics, Casey started her career at Fleet National Bank’s Precious Metals Group, which included a large presence of jewelry manufacturers. Throughout her career, Casey has assisted leaders of private and public companies and managed credit, precious metals consignment and hedging facilities, as well as analyzed financial statements and structured credit facilities for commercial clients.
Brian Madson joins the ERA team as business growth strategist. Madson has over 30 years of experience in the jewelry industry, beginning his career in Southern California at a small three-store operation and moving quickly into management helping to grow the company. Throughout his career, he has teamed with a variety of jewelers to recruit and mentor sales associates, develop strategic sales programs and processes, create merchandising plans, and grow their businesses. His specialty is helping stores find, train, manage, and motivate top sales achievers. Madson credits his success to the personal, individual approach he has with each business.
Nancy Havener, whose focus will be client mentoring, has been serving the jewelry industry since 2003. She brings experience as a service coordinator, buyer, and, most recently, managed a retail jewelry store for the past several years. Havener has experience with jewelry store day-to-day operations, retail sales, staffing, purchasing, and inventory management.
David Brown, co-founder and president of ERA, says the three will provide invaluable services for clients, and that all current and new mentoring clients of ERA will receive a full financial and business analysis (a business health check) twice each year.
“With Phyllis’s background and expertise, she helps jewelers improve their cash flow, provides an operating expense analysis and gives financial management advice to ensure a healthy future,” said Brown, adding that her background in both commodity trading and commercial credit, she offers a unique perspective.
Madson, having walked through the process personally, understands what it takes to develop a successful retail business and works with ERA clients to help them do the same, said Brown, adding that Havener will use her experience and knowledge to “support the Edge Retail Academy mentoring team as well as the jewelry retailers and vendors we work with. We are thrilled with the additions of Nancy, Phyllis and Brian to the growing Edge Retail Academy team. They will each bring their unique talents to assist our own team as well as the vendors and retailers with which we partner.”
AGTA Announces June Deadline For 2017 Spectrum Awards
Dallas, TX—The American Gem Trade Association has moved its annual Spectrum Awards competition to an earlier timeframe. The deadline to enter is June 17 for the mail-in entry deadline, and June 28 for the New York drop-off of live entries. For more information, visit www.agta.org/awards.