Is Retirement Nearing?

Most of us love the industry, our customers, and our staff, but at some point, we all realize that something’s got to give. Decisions need to be made. Options need to be considered. Exit strategies must be formulated.

When we consider the demographics of our retail jewelry industry, it’s easy to see how so many are Baby Boomers at, or nearing, retirement age. 

Just the word “retirement” conjures up a host of financial considerations and emotional feelings. Most of us love the industry, our customers, and our staff, but at some point, we all realize that something’s got to give. Decisions need to be made. Options need to be considered. Exit strategies must be formulated. 

Business transitions are as important to consider as business growth and development. Such transitions are never top of mind when starting a business or attempting to grow it. But that doesn’t mean they shouldn’t be a key priority when the time is right.

If you are at that important stage and need some advice about what to do and how to do it, we would love to help. We continually work with jewelers at this critical period in their lives, so we know the issues you face. We’ve helped hundreds of jewelers face them time and time again. And we consider it both a pleasure and honor to do so.

 So if you are at or near retirement age with questions about what to do next, give us a call or drop us a line. We are there for you.

Sincerely,

Jeff Gordon, CEO

Change Is Coming

…This is a time to remain agile and to ensure that you have very little debt and good cash flow, retaining what you have worked all your life for…

The recent failure of SVB Bank has put a punctuation point on the uncertainly surrounding the economy and what 2023 and ’24 will bring. Coupled with inflation, interest rate hikes, a slowing housing market, lower consumer sentiment, and a possible recession, our advice is to hunker down and maintain cash flow and liquidity.

According to the Jewelers Board of Trade, store closings in 2021 and ’22 were down from previous years with retail jewelry business at all-time highs. Disposable personal income was up during these years and travel was way down. Most jewelers felt a slowdown in the second half of 2022 and this has spilled over into 2023.

But despite our low unemployment, major layoffs taking place, and personal savings rates about half of what they were just a year ago, consumers are still spending. But what are they spending on? Travel is up over pre-pandemic levels and it is eating into discretionary spending for many Americans.

What does all this confusion in the economy and marketplace mean for you as a fine jeweler? Despite inflation, cash is still king and debt is a millstone around any business owner’s neck. This is a time to remain agile and to ensure that you have very little debt and good cash flow, retaining what you have worked all your life for. Tightened inventory levels are important. The old adage “prepare for the worst and hope for the best” is not a bad mantra during this time.

 At The Gordon Company, our role in the industry is to help jewelers monetize aged merchandise, improve cash flow, and reduce debt. If this is what you need in a year that requires some serious belt-tightening, give us a call to see how we can help.

Sincerely,

Jeff Gordon, CEO