Jewelry Trade Continues to Shrink

RAPAPORT... The US jewelry industry continued to downsize in the third quarter, with 101 companies leaving the business, according to new data from the Jewelers Board of Trade (JBT).Nine firms went bankrupt, while 37 dropped out due to mergers or takeovers, the JBT reported Thursday. A further 55 closed for other reasons.The number of exits plunged 65% compared with the same period of 2019. However, the total size of the industry fell 3% year on year to 24,258 businesses, with only 42 joining the trade during the period. Retailers still account for the bulk of the industry, numbering 18,375 - down 3% year on year.The organization, which provides credit information for the trade, downgraded 1,373 companies' credit ratings across the US and Canada during the quarter, up from 1,210 a year ago. However, it also raised the scores of 1,182 businesses - higher than 1,043 a year before.In the first nine months of 2020, the number of US companies exiting the industry fell 14% to 514, while the number of new businesses slid 40% to 112.Image: Diamond jewelry in a store. (Shutterstock)