Jewelry Business Closure Rate Drops

RAPAPORT... The US jewelry trade continued to contract in the secondquarter, but the rate of downsizing has slowed from the previous year, datafrom the Jewelers Board of Trade (JBT) revealed. In the three months ending June 30, 185 jewelry businessesexited the market, a 21% drop versus the same period a year ago. Retailersconstituted 135 of those - 21% fewer than last year, while the number ofwholesalers leaving the market grew 20% to 36. The manufacturing trade lost 14companies, as opposed to nine a year ago, based on data the credit-informationprovider released last week. Most of the companies quit the industry for reasons otherthan financial failure, takeover or merger. However, the number leaving due tobankruptcy more than doubled to seven, as opposed to three in the secondquarter of 2018, while the number of consolidations fell 2.4% to 40. Meanwhile, the JBT recorded 68 new business openings,compared to 71 during the same period in 2018. The total number of recorded jewelry businesses slipped 2.5%in the April-to-June period. Some 26,252 stores were operating in the secondquarter as opposed to 26,909 a year ago. Image: A store jewelry display. (Artix Kreiger)