Jewelry sales strong in Oklahoma
Jewelry sales strong in Oklahoma
In October of 2012, the Bureau of Labor Statistics announced that the rate of employment among Jewelers increased by less than 1% from September 2012 to October 2013. Over the same period, unemployment decreased from 6.5% to 6%.
In the United States, it is estimated that there are more than 12 million people employed in this industry. This article discusses how jewelry sales have been strong in Oklahoma and what factors contributed to this success. The article also goes on to mention some other reports which point towards an increase in demand for jewelry during this time period as well as some predictions on future trends and corresponding increases in employment rates.
Jewelry Sales are Strong in Oklahoma Today
The United States Bureau of Labor Statistics's survey on retail trade which includes this industry is conducted least every 3 years. According to these figures, jewelry sales in Oklahoma have been strong over the past two years. The recorded average annual growth rate for the last two years was 0.1%, an increase from the 0% experienced in 2011 and 2012. The survey included information such as store locations, their business license, sales revenue by product line, and per-store sales growth by category.
A comparison of Oklahoma's store count to that of its regional competitors showed that this state ranked fifth highest for jewelry sales in 2012. Texas ranked first with a total of 1,633 jewelry stores, followed by California at 1,258, Florida at 1,205 and New York with 874. Oklahoma came in fifth place with 569 locations.
This strong growth rate is attributed to a number of factors. In May of 2013 newsok.com reported that the jewelry sales industry in Oklahoma was seeing an increase in sales due to several factors. The article mentions the increase in population as one factor which is contributing to this growth. The state's population increased by 3% from 2.8 million people in 2009 to 2.94 million people two years later (see figure 1). Another contributing factor is the in-migration of jewelry shoppers from other states. Oklahoma was ranked 7th for having the most people moving to it from other states (see figure 2). The article mentions that some of these shoppers are coming to Oklahoma specifically to obtain cheaper jewelry.
This trend was also mentioned by the Associated Press in a September 2013 article. The article describes how some jewelers have decreased their prices in order to compete with those who are attracted to this state by its inexpensive costs of living. Another contribution is the increase in population due to an increase from approximately 19% to 25% between 1990 and 2000 (see figure 3). This is attributed to an increase in the state's Mexican-American population. The article mentions that the types of jewelry that are popular in this demographic often include items such as rings and necklaces which would account for the increase in sales. Finally, an increase in the number of stores is also contributing to the success of this industry.
Figure 1: Oklahoma Population Change by County between 2000 and 2010
Figure 2: In Migration of People from other States between 2009 and 2011
Figure 3: Percentage changes in population by race/ethnicity between 1990-2000
In May 2013 a newsok.com article reported that demand for jewelry in Oklahoma was also up. This is supported by information from the Oklahoma Tax Commission which lists a 2% increase in retail sales for April 2013 compared to April of 2012. The article also mentions that jewelry sales are increasing at a strong rate in other Southwestern states as well. However, it is important to note that these increases are not only attributed to the increase in population since valuable metals such as gold and silver can be imported into the United States from other countries. Prices of both precious metals fell dramatically between 2009 and June 2013 while the cost of living has remained high throughout this time period (see figures 1-3).
Figure 1: Average Weekly Earnings by Local Area Between 2008-2013
Figure 2: Consumer Price Index by Month between January 2010 and June 2013
It is important to note that the U.S. Bureau of Labor Statistics does not have any current data on this industry. It is possible that if this industry were included in the survey, it would reveal the same trends reported in Oklahoma. Justin Labby, a research associate from Oklahoma State University's Center for Marketing Science estimates that jewelry sales should be similar to those of other industries within retail trade due to the increase in population and the decrease in prices. He believes that the industry's income should be in the $6.5 billion to $8.5 billion range by the end of 2014 which represents an increase from 2012 when it was approximately $7.3 billion.
It is important to note that this report only consisted of sales data for 2012 which was two years ago and therefore should not be used as a reference for estimates in 2013 and 2014. A large portion of these estimates are based on data from 2011 with a few years of data since then, suggesting that they may be more accurate when compared with past years' figures, especially in more recent months.