FINALS GUIDE
6
Jewelry sales slow as economy slumps
BY GRANT TREASTER
editor@kansan.com
Beads, strings and brightly colored stones are spread out across a table as the smell of incense fills the air in the basement of a downtown Lawrence building. Alia Sachedina is making jewelry in the back of African Adorned, the newly renovated store she has owned for a little over two years.
Sachedina is selling more of her low-priced jewelry to customers this holiday season because of the slow economy. She said customers were being more conservative and typically buying only the jewelry priced below $20.
"I'm not an economist, but I have a suspicion that this year will not be as good as last year," Sachedina said.
EFFECTS ON LAWRENCE STORES
Since October, the price of jewelry materials has increased and jewelry sales across the country have decreased. Lawrence jewelry stores have also seen reduced profits. The Lawrence stores are employing different strategies this holiday season to offset the effects of the national economic recession.
Julie Kingsbury, owner of Jewelry by Julie in downtown Lawrence, saw profits in October and November decrease by 25 percent from the year before.
She also had to raise prices during the last two months. Kingsbury, who makes about 90
percent of the jewelry in her store, said pieces that cost $20 a few months ago now cost $25 or more.
Rich Yeakel, owner of Marks Jewelers in downtown Lawrence, said profits in October and November had dramatically decreased from the year before. Profits in October were 25 percent lower and in November were 40 percent lower than the year before.
"Things were going great, and then all of a sudden it stopped." Yeakel said
African Adorned also saw decreases in sales during the last three months. Sachedina said sales dropped by 8 percent in September, 2 percent in October and another 2 percent in November.
price of platinum, gold and rhodium helped to decrease the amount of sales at their stores. A piece of gold jewelry at Hurst's store that was $300 might now cost $700.
Hurst and Sachedina said increases in the
Michael Hurst, owner of Hurst Fine Diamonds, said sales at his store dropped to belownormal levels in October, but returned to normal in November. Hurst declined to say by how much his sales had decreased.
Sachedina said she usually buys jewelry from several American companies, but had to stop doing business with some of them because their prices doubled.
"Due to inflation, and whatever weird economic stimuli to the market, the price of silver has gone through the roof," Sachedina said.
ALIA SACHEDINA
Owner, African Adorned
HOLIDAY SALES STRATEGIES
"I'm not an economist, but I have a suspicion that this year will not be as good as last year."
Stores around Lawrence are using more sales, selling different items and looking for new customers to combat the decline in profits.
African Adorned has a sale every year after Thanksgiving. But this year Sachedina extended it by three days to attract holiday shoppers with smaller budgets.
"I get a lot of guys, because a lot of them wait until the last minute to do their shopping," Kingsbury said.
Kingsbury and Sachedina said they were using more sales to attract holiday shoppers, and hoped to see more customers during the two weeks before Christmas.
Hurst said his store's biggest month was December and that it had to have high sales to be successful throughout the rest of the year. His store is relying more on couples getting engaged than people buying holiday gifts.
"One thing that's consistent is that people are going to get married," Hurst said.
Hurst's store is now trading customers for jewelry to combat its low sales. Customers can bring in scrap gold and trade it for jewelry, or the store will pay customers to bring in scrap metal, which they recycle and reuse.
Sachedina said she hoped women would come in to buy more of her smaller items. She is selling more pieces for $25 and below.
and hopes customers will buy one or two items in that price range to compensate for not being able to afford more expensive items.
"It's a strange phenomenon, but jewelry makes women feel good," Sachedina said. "It makes them feel beautiful."
Marks Jewelers is also advertising its lower priced items. Yeakel is overhauling his website and spending 20 percent more on advertising in December. He said he hoped the advertising would help attract holiday shoppers.
"Yesterday was a good day so hopefully it will continue." Yeakel said.
DECEMBER 15,2008
THE UNIVERSITY DAILY KANSAS