Despite the strong economy, more jewelry businesses closed in this year’s second quarter than in last year’s, according to the regular statistics issued by the Jewelers Board of Trade (JBT).
The Warwick, R.I., credit rating group recorded 151 North American jewelry business discontinuances during the second quarter of 2021, up from 99 the prior year. That’s on par with the first quarter of 2021, when 148 businesses discontinued operations.
Some 125 of those discounted business were retailers, 14 were wholesalers, and 12 manufacturers. The JBT’s definition of discontinuance includes a business that ceased operations (123), declared bankruptcy (2), or was merged or acquired (26). All but 8 of those discontinuances were in the United States; the rest were in Canada.
The increase was probably not surprising—as JBT president Erich Jacobs noted in April, the height of COVID-19 lockdowns was not a great time to hold a liquidation sale. Otherwise, he said he’s had generally good feedback from members about business and the economy in general.
Still, the stats somewhat reverse the most recent trend of a shrinking number of small closings.
Yet, the stats did contain significant good news: JBT recorded 41 new businesses opening in North America during the second quarter of 2021—which breaks down as 36 retailers, 4 manufacturers, and 1 retailer. All of those openings were in the United States. That’s up from 24 business openings in the second quarter of 2020.
That also reverses the recent trend: In the first quarter of 2021, the number of new business openings fell.
All in all, the industry shrunk by only 82 companies in the second quarter—which is a small decrease by recent measures.
JBT listed 25,343 jewelry business in North America at the end of the second quarter of 2021: 19,169 retailers (U.S. number: 18,196), 3,691 wholesalers (U.S. number: 3,469), and 2,483 manufacturers (U.S. number: 3,469). The group’s total listings are down 1.8% from the second quarter of 2020, which, again, is a small decline by recent standards.
(Photo: Getty Images)
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