This U.S. Jewellery Retailer Believes that Government Aid Helped Ride the Storm but not without a Flipside

People are buying finer and more important pieces, as opposed whimsical or short-lived trend items. If they are buying a lower price point piece, for example, it will be something they can add to the pieces they already have. And example would be someone buying a Messika bracelet to wear with the Cartier or Van Cleef piece they already have. If they are buying emeralds, they want a really fine quality, deeply green stone. An investment piece and a generational piece. In the watch category, we are seeing more refined styles, not quite as big, but with more complications and more generational pieces.

Richard Eiseman, President & CEO of close to sixty year old Eiseman Jewels in Dallas' upscale NorthPark, shares insights about inventory management, what sells, the brand's strategy going forward and how the American consumer mindset has changed after the pandemic.

As the lockdown has been easing in several parts of the U.S., what has the consumer sentiment towards jewellery been like?

Customers came back to our store, wanting to celebrate life with meaningful piece of jewellery.  Jewellery that can pass from one generation to the next was particularly of interest. Pieces with classic styling, great quality and enduring intrinsic value were most sought after. The big thoroughbred brands, especially when it comes to watches, have continued to flourish.  Customers are now more open to looking at other brands if their preferred brand is not available given limited supply.  And while people area in the store shopping for watches, they are also looking for investment pieces, jewellery with enduring value. 

Coming out of this lockdown, as a business owner, what are your immediate concerns?

I have always erred on the side of being conservative. As an investor myself (outside of watch and jewellery space), I am expecting the traditional ten percent correction in the equity markets, which can affect consumer sentiment and willingness to purchase. I am hopeful that the correction will come in the fall and not during the holiday shopping season. High net worth individuals are not really affected may be by a 10% decline, but their sentiment could have a big impact. If consumers are feeling good, they go out and spend. But if not, they tend to withdraw.  That’s the immediate concern.

My greatest concern, though, is always that I want the best for my clients and for my team and I want to ensure that we are good partners for our designer jewellery and watch brands. We are all relieved following the pandemic and have proven that we are a very resilient industry.

In the last 1.5 years, what according to you have been some of the major challenges and how have you been facing the same?

The unknown was the biggest challenging and had the biggest impact.  Everything was changing so rapidly. But once things stabilized a bit, thigs started to improve. For us, it seemed to work in six month intervals – March – September of 2020 was filled with uncertainty.  October 2020  – March of 2021 felt like “ now we are back!”  And April/May 2021 to now has us all asking “what is new normal?” or “is this the new normal?”

In what ways has the consumer mindset in the U.S. changed after the pandemic and what is your strategy to stay relevant?

Consumer habits changed for a while, with an increase in online sales, but once cities opened up, people wanted to get out and get away from their computers. Jewelers are really just in the infancy of e-commerce; we are all paying more attention to it now. But if you watch the headlines, even strong e-commerce brands are now looking at brick and mortar, starting flagship retail outlets or setting up pop-up shops. Basically, retailers are all expanding to a broader omni-channel approach to reach their customers everywhere and every way that they like to shop.

What are some of the definitive jewellery trends – in other words, what categories have been witnessing an uptick in demand?

People are buying finer and more important pieces, as opposed whimsical or short-lived trend items. If they are buying a lower price point piece, for example, it will be something they can add to the pieces they already have. And example would be someone buying a Messika bracelet to wear with the Cartier or Van Cleef piece they already have. If they are buying emeralds, they want a really fine quality, deeply green stone. An investment piece and a generational piece. In the watch category, we are seeing more refined styles, not quite as big, but with more complications and more generational pieces.

How helpful has the government aid been?

The government support has been a mixed bag for our industry.  Many retailers were able to keep their staff together and ride the storm with the PPP money. But at the same time, the government subsidies seemed very high in relation to some income levels, creating a workforce shortage. We are currently seeking to hire and are having trouble finding great candidates. Unemployment income combined with the stimulus payments exceeded some people’s existing income levels; this might have taken a little of the work ethic out of the marketplace.

How have your online sales faired in the past year and what kind of jewellery products are consumers inclined towards buying online?

Our online sales have increased. We saw an increase in local customers buying online who could have come to store but chose not to. We saw several of the watch companies change their position on e-commerce. Some, much to my disappointment, increased their direct-to-consumer outreach, creating a competitive disadvantage for us as retailers who have to service those customers.  Other watch brands opted to work through our retail website, and we are seeing some success with that.

The government support has been a mixed bag for our industry.  Many retailers were able to keep their staff together and ride the storm with the PPP money. But at the same time, the government subsidies seemed very high in relation to some income levels, creating a workforce shortage. We are currently seeking to hire and are having trouble finding great candidates. Unemployment income combined with the stimulus payments exceeded some people’s existing income levels; this might have taken a little of the work ethic out of the marketplace.

 

What are your key tips when it comes to inventory management – how do you draw the balance between overstocking and not falling short?

I am hypersensitive to inventory management. It is critical to working closely with the designer brands on aged inventory in a way that can be a win-win for both. The key is not inventorying consigned goods that compete with your owned goods. Also, I suggest paring down the number of relationships with designers/brands so that you can be more important to fewer. In that case, you can call upon them to substitute your inventory in challenging times.

What are your top sales strategies going forward? 

I expect in-store events will fall probably short, whereas one-on-one or small group experiences with added value will better serve us. We all learned during COVID that life is about moments (as opposed to large gatherings with people you don’t know).  Basically, less is more. We plan to keep creating unique and meaningful small-scale experiences for our customers and helping them really celebrate life’s many fabulous occasions and milestones.