US Jewelry Store Closure Rate Slows

RAPAPORT... The number of jewelry businesses operating in the US slipped slightly in the first quarter of 2021, a much smaller decrease than in previous periods, according to data from the Jewelers Board of Trade (JBT).In total, the sector downsized 1.5% year on year to 24,095 companies, compared to a decline of 4.2% in the first quarter of 2020, the JBT reported last week. Of the businesses that discontinued operations, four firms went bankrupt, while 32 dropped out due to mergers or takeovers. A further 108 closed for other reasons. Meanwhile, the number of new businesses fell 31% to 33.Retailers still constitute the bulk of the sector, numbering 18,263 - down 1.5% year on year. The wholesale trade dropped 1.3% to 3,476, while the manufacturing sector contracted 2.3% to 2,356 firms.The organization, which provides credit information for the trade, downgraded 650 companies' credit ratings across the US and Canada during the quarter, versus 1,107 a year ago. However, it also raised the scores of 1,643 businesses, compared to 1,185 in the first three months of 2020. Image: A man looking at jewelry in a store display. (Shutterstock)