September 20, 2001
Sales Increase for JA Members in 2000
Jewelers of America members experienced slight sales growth in the year 2000, according to JA's annual Cost of Doing Business Survey.
According to the survey, median sales among respondents increased 3.3% in 2000, the tenth straight year of growth. Jewelry chains experienced the largest sales growth, 10.5% down from the 15.6% growth reported in 1999. Overall gross margins decreased to 47.4%, the lowest level since 1987. Net profitability decreased from 7.3% to 6.1%, reversing a four-year growth trend.
Diamond jewelry and loose diamonds accounted for 46% of sales among survey respondents, JA says. Karat gold jewelry accounted for 11% of sales, and colored stone jewelry made up 9%. Watches represented 4% of sales, and jewelry repairs were 10% of total sales.
"While the industry's growth has apparently slowed, we are pleased that JA members have fared well despite the economic slowdown," says JA President and CEO Matthew Runci. "JA pledges to continue to help our members grow through cost-saving programs, educational endeavors, marketing initiatives and certification testing."
The Cost of Doing Business Survey is based on questionnaires submitted by more than 400 JA members. It can be purchased by calling JA at (800) 223-0673.
- by Julia M. Duncan