February 2004 First Run 2003 Holiday Sales: Good News at Last Publicly reporting jewelry and luxury retailers top sales increases; luxury watches also popular After several years of generally weak results, jewelry chains and luxury retailers finally have cause for optimism – they enjoyed the healthiest comparable-store sales increases among all retailers this past holiday season. Luxury watches also bounced back. Midpriced department stores and general discount stores didn’t fare as well, though some posted better sales than expected. Here’s a recap: Zale Zale Corp., Dallas, TX, the largest jewelry retailer in the U.S., said its comparable-store sales increased 4.1% for November-December compared with 1.3% growth for the same period of 2002. Sterling The second largest U.S. jeweler, Sterling, the U.S. division of United Kingdom-based Signet Group, saw same-store sales rise by 6.4% in the eight weeks leading to Dec. 24, compared with a 4.7% increase for the same period of 2002. Sterling’s mall stores – Kay Jewelers – and its Jared The Galleria of Jewelry stores fared well, the company said. Tiffany & Co. Tiffany & Co. reported U.S. same-store sales for Nov. 1-Dec. 31 were up 16% over the same period of 2002, with a 22% increase at its New York City flagship. Sales were up in most of the company’s other regions, except Japan, and the company cited strong diamond jewelry sales across the board as a reason. Tiffany also reported its combined Internet/catalog sales were up 27% for the holiday period. Whitehall Whitehall Jewellers reported same-store sales increases of 6.4% for November-December compared with the same period of 2002. Same-store sales in November-December 2002 were 2.6% lower than during the same period of the previous year. Friedman’s Friedman’s says its comparable-store sales increased 2.7% in the quarter ended Dec. 27 over the same period of the previous year. Other Venues Luxury department stores also reported healthy sales increases for the five-week period ended Jan. 3 compared with the same period the year before, with Neiman Marcus and Saks Inc. citing jewelry among their strongest categories. Neiman Marcus Group’s specialty stores division, which includes the Neiman Marcus stores and Bergdorf Goodman, said its same-store sales grew 12.6%; Saks Inc.’s Saks Fifth Ave. division enjoyed same-store sales increases of 9.6%; and Nordstrom said its same-store sales rose 9.1%. Luxury Timepieces Luxury watch sales also bounced back, reported The New York Times. “Jewelry, especially fancy, high-priced watches, rose 35% over last Christmas,” said C. Britt Beemer, chairman of America’s Research Group, which polls shoppers and retailers. “For corporate executives, CEOs and Wall Streeters, the watch is now as much a status symbol as the car they drive. It was the big gift they gave themselves this Christmas.” Watches with diamonds and technically advanced sport watches scored the most, according to leading watch dealers. Not So Hot Results weren’t as good for midlevel department stores and general discount retailers, though Wal-Mart Stores beat analysts’ expectations with same-store sales up 4.3% over 2002 during the five-week period ended Jan. 2. Federated Department Stores, owner of Macy’s and Bloomingdales, saw same-store sales gains of 1.2% in the five weeks ended Jan. 3 over the same period of 2002. May Department Stores Co. said its same-store sales increased 1.6% for the same period. The company’s stores include Lord & Taylor, Filene’s and Hecht’s. General online sales increased 30% to $12.5 billion between Nov. 1 and Dec. 31, according to ComScore Networks Inc. – by Peggy Jo Donahue