Harvey Rovinsky and his wife, Maddy, owned three stores, two in the greater Philadelphia area, and one in New Jersey. They had long considered how to sell or transition their business to new owners, but without success. Then it dawned on them that their succession plan was right in front of them. It was their longtime, loyal, and tenured staff that would take over their business as the Rovinskys planned their retirement.
Month: April 2024
Are Retailers Dealing with a Tangled Mess?
more stores are closing, and this trend will likely continue to significantly outpace new business start-ups. 2024 is a good year to take stock of your overhead, tighten buying, and become more efficient in overall operations.
A recent article in the business news on retailing was titled “America’s Retailers Are Dealing with a Tangled Mess.” It capsulated a slew of quarterly earnings reports highlighting too many stores, too much product, and too few buyers.
We know that inflation has dropped well below its peak in 2022 and forecasts that called for a recession have since dissipated. While the economy seems to be okay, there is still a high degree of anxiety in the air and a lingering doubt that costs have really subsided all that much.
Price-conscious consumers seem to be reaching for value. “Olive Garden owners stock plummets because dinners don’t dine out anymore.” People are turning to discount chains, big box stores, and outlet malls more and more. We also know that more stores are closing, and this trend will likely continue to significantly outpace new business start-ups.
What does all the mean to the fine jewelry retailer? It means 2024 is a good year to take stock of your overhead, tighten buying, and become more efficient in overall operations. Don’t be surprised if you see your jewelry repair business go up and your average retail sale go down.
At The Gordon Company we help jewelers with sale events that allow them to generate the cash needed to deal with these changes. Also, some of you are at retirement age and looking to cash in, we can help here too. If you need guidance thinking this through, Now is the time to give us a call for a no-obligation consultation on your needs.
