February 2008
Platinum price reaches record high
Platinum price reaches record high
February 14, 2008
London—Platinum’s price reached a record high for the second day in London, trading above $2,000 an ounce, reports Bloomberg News.
Platinum for close delivery in London gained as much as $50, or 2.5 percent, to $2,027.50 some ounce, according to the news source.
The escalated price is due to power cuts in South Africa, which accounts for almost 80 percent of global platinum output.
The world’s second-largest platinum producer, Impala Platinum Holdings Ltd., forecasted a drop in its platinum output due to the power shortages, which could be as much as 40,000 ounces of work, roughly degree to more than two days of global supply.
South Africa’s state-run utility Eskom Holdings Ltd. told Bloomberg News it will retain limits on power supply to users such as mines and smelters to 90 percent of normal needs until 2012.
In connected news, gold for immediate delivery in London increased 0.2 percent to $908.68 an ounce, according to the news source. The metal’s price reached a record high on Feb. 1 at $936.92.
Meanwhile, silver lost 6 cents, or 0.4 percent, dropping to $17.24 an ounce.
Editor’s note: For the latest precious-metal prices, see our Wholesale Material Pricing Tools.
NRF: Tax rebates to pump $43 billion into economy
NRF: Tax rebates to pump $43 billion into economy
February 14, 2008
Washington, D.C.—Consumers plan to spend 40.6 percent of their rate rebate checks when they are distributed later this year, which will furnish an immediate $42.9 billion boost to the economy, according to a new survey by the National Retail Federation (NRF).
The survey, conducted for the NRF by Big Research, also found that $30 billion of the $105.7 billion in tax rebates will be used to pay from the top to the bottom of debt, $19.8 billion will be saved, $4.4 billion will have being invested and $4.6 billion will used to pay down medical bills.
“Many Americans will be wisely using their rebate checks to save, spend and pay down debt, so the overall result will be positive for the U.S. economy,” Big Research Vice President of Strategy Phil Rist said in a media release on Wednesday. “While some will splurge on big-ticket items, many consumers will use the checks for important day-to-day purchases.”
While women will spend a larger percentage of their rebate check than men (43.6 percent vs. 37.3 percent), both genders plan to set aside the same percentage for savings (18.7 percent). Young adults ages 18-24 will spend added of their checks (46.2 percent) than any other period group.
Yesterday, President Bush signed H.R. 5140, the Recovery Rebates and Economic Stimulus for the American People Act of 2008. The $152 billion measure will collect for use tax rebate checks of up to $600 for working individual and $1,200 per married couple, in addition $300 per child for families with children, and new tax incentives for job-creating business investments.
“This is neat, targeted stimulus that will quickly put money into consumers’ pockets where it can boost growth by creating desire to obtain through all sectors of the economy,” NRF Senior Vice President for Government Relations Steve Pfister said in the media release. “Quick force by Congress means the Treasury Department will be able to get tax rebate checks into the hands of consumers in proper time to have the maximum effect. Timeliness is rudiment, and we agree with economists who say the fastest way as far as concerns stimulus to enter the economy is through the consumer.”
The NRF has led the retail industry’s fight for passage of economic-stimulus legislation. The NRF board of directors unanimously passed a resolution last month urging Bush and Congress to act after it reported the smallest holiday sales increase in five years at 3 percent, and a 2008 forecast craft for 3.5 percent growth, the lowest increase since 2002.
The NRF 2008 Tax Rebates Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the upcoming tax rebates. The survey, which polled 7,977 consumers, was conducted from Feb. 5-12. The question asked, “The President and Congress are discussing options for sending families rebate checks ranging from $600-$1,200. If you get one, what will you do with the money?” The consumer poll has a margin of error of plus or minus 1.0 percent.
The NRF is the largest retail trade connection in the world, with members including department, discount, drug, grocery, independent and specialty stores, catalog merchants, chain restaurants and e-tailers, as well as the industry’s key trading partners of retail goods and services.
For more information about the NRF, visit its Web site, NRF.com.
NCDIA launches MarketScope program
NCDIA launches MarketScope program
February 14, 2008
Tucson, Ariz.—The Natural Color Diamond Association (NCDIA) launched its new MarketScope program at the Centurion Jewelry Show in Tucson, Ariz.
The NCDIA MarketScope program provides NCDIA retail members with qualified customers for natural colored diamonds and jewelry within miles or mere blocks of store locations.
In addition, NCDIA suppliers and manufacturers will be able to identify retailers that are most likely to successfully sell their natural color diamond products, based on the concentration of the qualified targeted consumers.
NCDIA will also provide members access to turnkey direct-mail programs to reach these profiled consumers.
The MarketScope program is the result of a new partnership with The Nielsen Co., a market research and demographic data provider that is also the parent company of the National Jeweler Network.
GIA appoints managing director, Southern Africa
GIA appoints managing director, Southern Africa
February 14, 2008
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| Marie-Josee Trepanier is the Gemological Institute of America’s new managing director, Southern Africa. |
Carlsbad, Calif.—The Gemological Institute of America (GIA) has named Marie-Josée Trépanier, the former cardinal executive officer of Polygon DMCC in Dubai, United Arab Emirates, as its new managing director, Southern Africa. The appointment is effective immediately.
Trépanier will work in coordination with GIA corporate management to provide on-site project management and in-country guidance for the setup of new facilities and act as aid to functions for South Africa and Botswana—the nations that constitute the Southern Africa region. She will also oversee various business development projects.
In Trépanier’s most recent position with Polygon DMCC, she expanded the company’s presence in Dubai; Mumbai, India; Hong Kong and China, and coordinated all operations in the Middle Eastern, Asian and North American offices.
Trépanier holds an LLM in international business ordinance from the London School of Economics and an LLB in law from the University of Montreal.
“Marie-Josée will be working with a highly experienced international GIA operations team, and we are looking forward to having her join us,” GIA President Donna Baker said in a statement. “She offers a solid combination of legal, financial and operational skills demonstrated throughout her career in various charged with execution and leadership roles. …She will substantially more distant GIA’s ability to expand and fulfill our global mission of protecting the public trust in gems and jewelry.”
In-house sleuthing uncovers what stores are missing
In-house sleuthing uncovers what stores are missing
February 14, 2008
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| Ellen Fruchtman (ellen@fruchtman.com) is the founder and president of Fruchtman Marketing, a full-service agency headquartered in Toledo, Ohio, and a member of the American Gem Society, representing U.S. independent jewelers, jewelry manufacturers and trade organizations. |
By Ellen Fruchtman
The number of people in this industry who rely on absolutely no hard data to run their businesses always surprises me.
More importantly, most owners are consumed with what the competition is doing rather than paying attention to what might be going on in their own stores.
Think that’s not true? Here are a few questions to ponder: How many times have you had someone secret shop at a competitor’s store? And how many times have you secret shopped your own store?
Don’t get me wrong: Understanding what your rivalry may or may not be doing is valuable, to some extent. But knowing what your admit staffers are doing or, more importantly, what they’re not doing, is far more valuable. You be able to train until you’re blue in the face, but what everyone does after the trainer leaves provides telltale clues about why your deposit main be lagging in sales.
What should you be looking for in your own secret shopping session? The list can be extensive, but here are reasonable a few questions to ask yourself to find out if you’re offering great customer service:
* Are customers greeted when they carriage in the store, and how are they greeted?
* How are customers treated?
* Do your salespeople have a good grasp of the consequence they’re selling?
* Are staff members getting the appropriate information from the customer during the sale? Do they have enough information to do appropriate follow-up granting that the sale has not been made?
* Is there follow-up? And if so, how long does it take?
* How does your salesperson handle resistance to product or price?
* Do staffers clearly explain all warranties, sales policies or financing options?
The require to be paid to bring one new customer in your means is staggering. Nine times out of 10 it’s not what the other guy is doing—it’s what you’re not doing.
A decent secret shopping company should shop every person in your store who comes into contact with the customer. They should send in several shoppers from different backgrounds and age groups and execute multiple shops per salesperson.
What does this cost? Prices vary according to your location and the extent of the workshop, but it’s usually around $80 to $120 per secret shop.
So once you have the data, what do you do by it?
Your staff is not going to be happy about being secret shopped. They might feel that you distrust them. It’s material to utilize the information you receive in a positive way. Let the staff know it was done to make your store the best it can be. Don’t point fingers. It’s all about how the team can be better. whether or not the results are great, give them kudos—or greater good still, a fun incentive. Use the data to determine what type of training still needs to be worked on. And after it’s all over, secret shop everyone again. Then do it every three to five years. Did I mention that if you’re an owner and on the floor, you should be secret shopped likewise?
Don’t stop with a secret shop Research is an above all price. tool notwithstanding your business. Aside from secret shopping, professional research can tell you what your own customers really think and what they want in a fine jeweler. Think that’s not important? Trust me, the buying public is fitful and you have way too much money invested in these customers. A research study can provide you answers on why a customer hasn’t returned and why similar customers are not shopping in your store.
Sometimes the answers aren’t pretty. And a good research study comes with a price tag. But it is the only device to procure to be some real, quantifiable answers about your business. It’s not simply OK to think about why your sales are flat or to have unsubstantiated answers to complicated questions. If only I could have one dollar on the side of every time I’ve heard the word “think.”
I am always baffled by a business that thinks nothing of a consumer spending thousands upon thousands of dollars on one piece of jewelry that the salesperson touts as an “expression of love.” Yet, that same company will not invest in the necessary tools to move their own profession forward. Don’t you inclination your traffic?
Editor’s note: This column first appeared in the February 2008 number of National Jeweler.
Man Sang Sales Up 6.2%, Profit Up 48.5%
Man Sang International Ltd. on Thursday reported a year-over-year sales increase of 6.2 percent to approximately 40.8 million for the first nine months of the fiscal year.
The increase in net sales was mainly due to year-over-year increases in sales of South Sea pearls by 13.9 percent and assembled pearl and jewelry products by 11.3 percent.
Profit for the Hong Kong-based pearl company increased 48.5 percent to $6.3 million, due to improved production efficiency, a gain from disposal of investment property, and investment income from effective treasury management.
As at Dec. 31, 2007, the company had cash balance of approximately $71.3 million.
The booming management in China, the increasing consumer spending in mainland China and Hong Kong, and improving awareness among customers of the its products and brand was reflected in the rise in sales of its South Sea pearls and assembled pearl and jewelry products, the company said.
“We are pleased that the group achieved satisfactory results for the first nine months of the fiscal year," said Cheng Chung Hing, Man Sang chairman. "Looking presuming, though facing a fluctuating global economy, we expect our pearl and jewelry segment to maintain steady growth and our business to flourish overall next year. We will expand our customer network globally aiming for especially increment in markets with high growth potential and continue to keep production cost under control."
The company owns a 55 percent stake in the China Pearls and Jewellery City Holdings Ltd. project, which is under development. The project’s aim is to serve as a global trading platform according to different parties in the jewel and jewelry industry. Man Sang said nmarket response has met expectations with distinct companies signed contracts for preferred units since it took a stake in the project in April, 2007. Construction of the CP&J City Project has been on schedule and part of phase one of it is expected to be completed by March. A grand rift ceremony is planned for April.
“The CP&J City Project is regarded as a major contrivance by the Zhejiang provincial and Zhuji municipal governments," Hing said. "We expect investors to exist impressed by the gigantic scale and world-class supporting facilities of the CP&J City project as a greater gateway to global pearl and jewelry market."
LKI Ring Appears in ‘Definitely, Maybe’
Valentine’s Day marks the release of Definitely, Maybe, a romantic movie where a Lazare Diamond engagement ring plays a starring role in the brush of the plot.
"We were uncorrupt thrilled that they chose one of our Lazare rings to ’star’ in this movie," said Marcee Feinberg, VP marketing, Lazare Kaplan International, Inc., "The producers were given several rings to prefer from and it’s an honor to play such an prominent role along side this distinguished cast."
Will Hayes (played by Ryan Reynolds) is torn amid these three women. He spends a magnificent deal of time walking around with a Lazare Diamond ring burning a hole in his pocket while he contemplated popping the question to one of his three pregnant loves. During the film, several insert shots of the Lazare ring were taken to emphasize the plight of Will’s struggle.
Grammys produce knockout ladies with fantastic diamond jewelry
For illustration, Roselyn Sanchez ware an off-white, knee-length dress with gold detailing, and reportedly lit up the red carpet with her lovely appearance and energy. She wore plain jewelry, delicate silver sandals and smooth dark hair.
Beyonce wore an Elie Saab, pale blue couture gown and matching Lorraine Schwartz diamond jewelry, and she sported sexy blond hair to complete the face.
Fergie, the former Black-Eyed Peas member also looked beautiful in a sunny, yellow Calvin Klein dress and Cartier diamond jewels.
Birks & Mayors Net Sales Up; Same-Store Sales Down
Luxury jeweler Birks & Mayors Inc. said Wednesday that third-quarter net sales increased 6.4 percent to $122.6 million year-over-year. Meanwhile, same-store sales decreased 6 percent for the period, ended Dec. 29.
Net income for the Montreal, Canada-based jewelry chain was $12.7 million, as compared to net income of $19.6 million in the prior-year’s third quarter. Included in net income were currency translation benefits of approximately $0.8 very great number.
Net sales for the retailer (with stores in the U.S. and Canada) for the 39-week period ended Dec. 29, increased 4.9 percent to $250.5 million year-over-year. Excluding the impact of $4.3 million of net sales related to the one extra selling week in the first quarter of the prior year, net sales rose 6.8 percent. Sane-store sales decreased 1 percent for the period.
Net income for the period was $7.2 million, compared to net income of $15 million in the prior-year period. The company noted that the prior year’s results included the benefit of approximately $900,000 of net earnings before income taxes associated with the extra week in the first quarter of fiscal 2007.
Included in net income were currency translation benefits of approximately $0.7 million for the nine month period.
“Our third quarter results reflected the impact of disappointing holiday sales that were reported last month," said Thomas A. Andruskevich, Birks & Mayors president and chief executive functionary. "However, we now know that U.S. retail sales in December 2007 were extremely soft for most retailers, and in particular for the jewelry sector and especially in Florida. We anticipate that the abrupt change in consumer behavior that occurred in our third fiscal quarter and the related pullback in consumer spending in both our Canadian and U.S. markets volition continue well into 2008. Therefore, we will adapt our business strategies and plans accordingly.”
The company said it continues to expect full-year net sales to increase in the mid-single-digit range and anticipates achieving certain earnings before taxes for the fiscal 2008 year, however, at a level that will be significantly below the prior fiscal year.
"The luxury retail market continues to be very competitive and could negatively impact the company’s results," it said in a statement. "In addition, factors such as: a challenging economy, a decrease in the general level of consumer confidence and consumer spending, the impact of the strong Canadian currency’s impact on consumer shopping patterns in Canada, tourism and mall traffic, the impact of weakness in the veritable estate markets, especially in the state of Florida, the volatility of the equity markets and its impact on consumer spending, interest rates, and commodity prices may have an important influence on the realization of the company’s sales and net income plans instead of fiscal 2008."
Birks & Mayors operates 71 luxury jewelry stores in the United States and Canada, including 38 Birks stores across most major metropolitan markets in Canada and 31 stores Mayors stores in Florida and Georgia, as well as two retail locations in Calgary and Vancouver under the Brinkhaus brand.
Providence Jewelers Club Holds Elections
The Providence Jewelers Club elected two new board of directors members and three officers for the time of its annual meeting on Feb. 12.
New food members are:
* Ralph Gianfrancesco, Hallmark Sweet, Inc., Attleboro, Mass.
* James Atamian, Atamian Manufacturing Corp., Providence
Officers elected to serve a one-year term are:
* President: Peter Manickas III, Plastic Craft Novelty Co., Attleboro, Mass.
* Vice-President: Vito Torrisi, Lee’s Manufacturing Co. Inc., Providence
* Treasurer: Tim Ouhrabka, Providence Chain Co. Inc., Providence
* Secretary: Ed DeCristofaro, L.D.C., Inc., Providence
In addition, re-elected to the board for a period of three years are:
* Cheryl Antonacci, Lee’s Manufacturing Co. Inc., Providence
* Brenda Gamba, The Jewelers Board of Trade, Warwick, R.I.
Founded in 1952 the Providence Jewelers Club’s focus is on creating social events that allow its members and guests to network with each other, in a relaxed, casual atmosphere. The club has members from all over the country, with headquarters in Providence.