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JBT: More Retail Jewelers Closing, But Also More Opening November 01, 2021 (0 comments)

Warwick, RI—The number of retail jewelers closing shop in the United States is still increasing gradually, but the third quarter of 2021 saw a significant jump in the number of new retail jewelry businesses opening.

According to figures from the Jewelers Board of Trade, there were 336 fewer retail jewelers in the third quarter of 2021, compared with the same period last year. Though minuscule, it does represent an increase in closings over the second quarter’s figures, which posted 333 fewer retail jewelers in 2021 vs. 2020.

Encouragingly, however, there were 101 new retail jewelry businesses opened in the third quarter of this year, a whopping jump from the 35 that opened in the third quarter of 2020, and the 36 that opened in the second quarter of this year. Additionally, nine wholesalers and 13 manufacturers opened in the third quarter.

In the United States, almost three fourths of retail business closures were those who ceased operations by choice, and the remaining one fourth was due to a sale or merger. There were zero bankruptcies in any category—retailer, wholesaler, or manufacturer—in the third quarter, and only four bankruptcies year-to-date among all categories. By contrast, in 2020 there were nine bankruptcies in the third quarter (five were retail) and 22 year-to-date (16 retail) at this period.

The number of claims filed with JBT dropped significantly over last year: 66 for the third quarter and 228 year-to-date, compared with 133 in the third quarter of 2020 and 308 year-to-date this time last year.

By region, the most new stores opened in the Southeast (28) in the third quarter. The Northeast and Southwest were tied at 21 new stores each in the quarter. The South Central region had 16 new stores, the North Central region had 11, and the Northwest lagged with only four new stores. 

Year to date, the Southeast leads in the number of new stores, with 68 having opened since the beginning of 2021. In second place is the Northeast, with 55, followed by the Southwest at 38, the North and South Central regions at 31 each, and, finally, the Northwest with nine.

By contrast, the Northeast leads in store closures—25 in the third quarter and 73 year-to-date. Year-to-date, 65 businesses ceased operations in the Southeast, 44 in the South Central, 40 in the North Central, 39 in the Southwest, and 15 in the Northwest. 

Chart: Jewelers Board of Trade