The American jewelers’ situation
According to the latest data issued by the Jewelers Board of Trade, in the last quarter of 2020, the numbers relating to the situation of American jewelry companies were not comforting.
As, in fact, was predictable, 91 companies ceased trading: 1 filed for bankruptcy, 21 underwent either a merger or acquisition and 69 closed for other reasons. Compared to the same period in 2019, the total number of closed businesses plunged by 71%, reducing the overall size of the sector by 2.2%.
However, about 40 new companies entered the jewelry business. As regards retail sales, the segment fell to 18,369 companies with a reduction of 2.2%, while wholesale decreased by 2.5% with a total of 2,378 companies.
According to Rapaport findings, the JBT, a body which, among its activities, provides information on credit for commerce, has downgraded the credit scoring of 1,373 companies in the USA and Canada compared to 1,066 in the previous year. In general, the number of American companies that left the sector in 2020 dropped by 34% and 152 new businesses opened.
Federica Frosini, Editor in Chief VO+