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Greater Number Of US Jewelry Stores Shutter In 2023

In 2023, the number of US jewelry stores shutter in 2023 and surged by 44%, marking a concerning trend revealed by the Jewelers Board of Trade (JBT). The data exposes a landscape marred by closures, bankruptcies, and mergers, pointing to a complex scenario that significantly impacted the overall health of the sector.

Jan 15, 202485 Shares21.1K ViewsWritten By: Johnny K.Reviewed By: Luke Williams
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  1. Number Of US Jewelry Stores Shutter In 2023
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Greater Number Of US Jewelry Stores Shutter In 2023

In 2023, the number of US jewelrystores shutter in 2023and surged by 44%, marking a concerning trend revealed by the Jewelers Board of Trade (JBT). The data exposes a landscape marred by closures, bankruptcies, and mergers, pointing to a complex scenario that significantly impacted the overall healthof the sector. Amidst this turmoil, the industry also witnessed a decline in new businessopenings, shedding light on the hurdles faced by both established and emerging players.

Number Of US Jewelry Stores Shutter In 2023

Jewelry store rings display
Jewelry store rings display

In a stark revelation that underscores the challenges faced by the US jewelry industry, data from the Jewelers Board of Trade (JBT) discloses a staggering 44% increase in jewelry businesses shutting their doors in the tumultuous year of 2023.

A detailed examination of the state of jewelry stores in the United States indicates a 1.3% decline in 2023, bringing the total number to 61,892. While this marks the smallest annual decrease in three years, the continuous downward trajectory is evident, following a 1.6% decrease in 2022.

The year 2023 records the lowest number of jewelry stores in more than a decade, reflecting the persistent challenges faced by the industry.

During 2023, a total of 628 jewelry firms discontinued operations, showcasing a significant spike from the 436 closures in the preceding year. Of these closures, four were due to bankruptcy, while 82 resulted from mergers or takeovers, with an additional 542 closing for other reasons.

A closer look at the past decade reveals a rollercoaster ride for US jewelry stores. From a peak of 76,975 stores in 2015, the market faced two consecutive years of around a 5% decline, reaching a low of 69,381 stores by 2017. Despite a marginal increase in 2018, subsequent years witnessed further contractions, with a 3.6% decrease in 2019.

The oscillations continued, with a 2.9% rise in 2020 followed by a substantial 7.8% plunge in 2021, marking the largest annual decrease between 2013 and 2023.

In a testament to the industry's struggles, the year 2023 saw a 21% decrease in new jewelry business openings, with only 402 new companies emerging.

As of December 31, 2023, a total of 23,140 jewelry businesses were in operation, representing a 2.7% decrease from the previous year. The retail sector, the largest segment, contracted by 2.8% to 17,554 companies. The wholesale segment declined by 2.2%, totaling 3,352 firms, while the number of manufacturers decreased by 3% to 2,234.

The fourth quarter of 2023 witnessed a 28% year-on-year slide in new businesses, with closures more than doubling compared to the same period in the previous year, totaling 144 compared to 59.

During this quarter, the JBT downgraded the credit scores of 595 companies across the US and Canada, signifying financial strain, although this was a decrease from the 749 downgrades in the same period of 2022. Notably, the organization raised the scores of only 692 businesses, a decrease from 844 in the corresponding quarter of the previous year.

As the industry grapples with these challenges, the future trajectory of US jewelry businesses remains uncertain, prompting a closer examination of the factors contributing to this turbulent landscape.

Final Words

As the year drew to a close, the final tally revealed a decrease in the total number of jewelry businesses compared to the previous year, with the retail sector, wholesale segment, and manufacturers all experiencing varying degrees of contraction. The fourth quarter of 2023, in particular, saw a notable decline in new business establishments coupled with a sharp increase in closures.

The Jewelers Board of Trade's decision to downgrade credit scores for a significant number of companies underscores the financial strain prevalent in the industry, raising questions about the future trajectory of US jewelry businesses and the measures needed to navigate these challenging times.

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