Wal-Mart Is No. 1 in Jewelry Retailing, Yet Misses Prime Target Market

STEVENS, PA -- In 2003 half of American consumers bought jewelry and/or watches and spent $53.6 billion. Jewelry sales rose 5.1% over previous year, corresponding with renewed strength in the luxury market. The typical jewelry consumer is a '20-something' to '50-something' higher-income woman. But these facts just scratch the surface of an increasingly fragmented market for jewelry, according to a new study of the jewelry market by Unity Marketing.

For the last several years Wal-Mart has been the nation's No. 1 retailer of jewelry, a finding confirmed in Unity's survey. Wal-Mart has risen to leadership in the jewelry market despite the fact that the prime target market for jewelry--high-income women from 25 to 54 years--almost never shops for jewelry in Wal-Mart or any other mass merchant/discounter. That means lower-income consumers who spend less than $100 on a piece of jewelry have propelled Wal-Mart to their dominant position.

"Today there isn't just one jewelry market. Rather when we talk about jewelry consumers, we need to look at discreet segments characterized by entirely different patterns of buying behavior. There are men buyers vs. women buyers; fine jewelry vs. costume jewelry buyers; gift purchasers vs. self purchasers. These segments overlap and intersect, requiring marketers and retailers to shift and turn in response to which type of customer is in view," explains Pam Danziger, president of Unity Marketing.

Among the key findings revealed in Unity Marketing's Jewelry Report 2004: The Who, What, Where, How Much and Why of Jewelry Shopping, based upon qualitative focus groups and a survey of nearly 600 recent jewelry buyers:

• About 20% of jewelry shoppers used non-store channels, either internet, mail order or television shopping, to buy jewelry in the past year. Jewelry shoppers are increasingly comfortable buying jewelry through direct channels, with eBay being the leading brand for non-store shoppers.

• For the most recent jewelry item bought, non-store channels rank among the top three shopping sources for buyers of jewelry priced under $500. And for those spending more than $500, non-store is the second most popular source.

• For most jewelry shoppers except the highest-spending buyers, department stores are the favored channel, with JC Penney and Sears being the top store brands. When selecting a store for jewelry shopping, shoppers first look for good prices and second the quality of merchandise. But good prices don't necessarily mean 'cheap prices.' What jewelry shoppers value most of all is getting a good value for a reasonable price.

For more information about the study, contact Pam Danziger, 717-336-1600.