Increased Closure of Jewellery Stores in the United States During 2023

2023 witnessed a heightened closure rate of jewellery stores across the United States, reflecting challenges in the industry. The trend highlights evolving dynamics and shifts in consumer behaviour impacting the retail landscape
Increased Closure of Jewellery Stores in the United States During 2023

In 2023, the Jewellers Board of Trade (JBT) reports a 44% increase in closures among US jewellery businesses, with 628 firms discontinuing operations compared to 436 in 2022. Of these closures, four resulted from bankruptcies, 82 from mergers or takeovers, and 542 due to various other reasons. The industry also saw a decrease in new establishments, with 402 companies opening during the year, reflecting a 21% decline from the previous year.

As of December 31, 2023, a total of 23,140 businesses were operational, marking a 2.7% decrease from the previous year, with the retail sector, the largest segment, contracting by 2.8% to 17,554 companies. The wholesale segment declined by 2.2% to 3,352 firms, and the number of manufacturers decreased by 3% to 2,234, as indicated by the JBT, a provider of credit and financial information to the trade. In the fourth quarter, new businesses declined by 28% year-on-year to 78, while closures more than doubled to 144, compared to 59 in the same period a year ago.

During the quarter, the JBT downgraded the credit scores of 595 companies across the US and Canada, showing a decrease from 749 in the same period in 2022, while only 692 businesses experienced an increase in scores, down from 844 a year earlier.

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