John A. Wiltsey

Rumors: Saks Fifth Avenue could be in talk with Neiman Marcus Group for a takeover. In this regards Saks’ flagship location in Manhattan (valued at 3.62Bn USD) could serve as a collateral to raise financial resources. Neiman CEO Geoffroy van Raemdonck firmly rejected such possibility: "no need” to sell the business. Both firms are leading retailers in United States for jewellery and luxury goods. #jewelry #jewellery #luxury https://lnkd.in/dP46VnM3

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Go big or go small? How much experience before you lose sight of the reason for its existence? That's the question for luxury retail stores as they clamor for business from finicky affluent consumers from Gens Y and Z, and by 2030, the first adult Gen Alpha's. Some brands such as Gucci and BALENCIAGA have pulled out all stops and gone humongous in their new store formats. The downside? The stores look empty from the outside. So that's the risk. And it's a fine balance. ewald damen, our Luxury Roundtable columnist from Virgile + Partners, has some thoughts on how luxury brands and retailers should adapt their stores to evolving shopper behavior. It's worth a read. We'll also be discussing this topic at our #Luxury Retail Forum New York Sept. 12, if you'd like to join us (registration link in article). #luxury #luxuryretail #luxuryretailing #retail #retailers #LuxuryRetailForum #luxurymarketing #luxuryrealestate https://lnkd.in/ddS5DSeS

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Sapphire Colors Sapphires come in all three primary colors: Blue, Yellow, and Red. When one thinks of sapphires, the first thing that comes to mind is an intense blue color. However, natural sapphires come in almost every color of the rainbow including pink, rose, violet, yellow, orange, green, blue-green, or white (colorless). Sapphires get their color from trace elements in the mineral corundum. Classic blue sapphires contain iron and titanium, the additional element chromium gives corundum the color pink, and more chromium parts make a sapphire more reddish and thus a ruby.

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Knowing what you don’t know and getting help are importsnt steps to success.

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US jewelry sales remained flat in August following a period of growth in July, according to Tenoris. Retailers have seen a surge in inventories recently, particularly in lab-grown jewelry, indicating potential challenges ahead. Natural diamond jewelry sales decreased by 3% year over year, while lab-grown jewelry sales saw a 10% increase despite a 17% decline in average price. This trend warrants attention as it may signify underlying market shifts. Read more: https://lnkd.in/dAPvmDZC

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Strategies and tactics about how to gather richest shoppers. A lot of conventional and close-to-conventional activities from top retailers like Neiman Marcus Group and Saks Fifth Avenue. Is it a true luxury experience? Or -at the end- is something like a mass-market (in smaller numbers)? #luxury #jewelry #jewellery https://lnkd.in/eNcCVgpG

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Thoughts of the day! Not long ago, I stood in the heart of a bustling boutique, where the hum of conversations and the gleam of polished surfaces symbolized the vibrancy of luxury retail. But lately, things have changed. The foot traffic has slowed, the energy feels different, and whispers of a cooling market have grown louder. It’s easy to feel uneasy in moments like these. Yet, I’ve come to realize that these moments—the ones that test us—are the very moments that shape us. Luxury retail is no stranger to cycles. There are seasons of abundance, where growth feels effortless, and then there are times like now—quieter, slower, more uncertain. But I believe these quieter seasons hold a power of their own. They invite us to stop, reflect, and grow in ways we never imagined. This is where we are now: in the pause. It may feel uncertain, even uncomfortable, but it is here, in the stillness, that transformation begins. You are not merely enduring this moment—you are becoming something greater. Each challenge is refining your resilience. Each setback is sharpening your vision. And every step outside your comfort zone is shaping you into the leader you were always meant to be. So, let the slowdown be your proving ground. Lean into the discomfort, embrace the uncertainty, and trust that this is the season that will prepare you for the brilliance ahead. The future may be unwritten, but it belongs to those who dare to rise when the world slows down. When the pace quickens again—and it will—you’ll be ready. Not just ready to thrive, but to lead with a clarity and strength that only come from embracing the journey, every step of the way. Because this is not the end of the story—it’s just the beginning…..

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🌟 Exciting News from Saks: Embracing Growth and Innovation 🌟 Saks and Neiman Marcus are joining forces to create Saks Global! As Marc Metrick, CEO of Saks, mentioned recently to WWD, their focus remains on what they can control amidst regulatory processes. The strategy is clear: to drive growth and enhance customer experiences. Named "Saks Global," this new entity reflects their commitment to leveraging technology and real estate assets to redefine luxury retail. While discussions about international expansion are underway, their immediate priority is strengthening the brand presence in North America. "We understand the importance of financial stability and responsibility. Rest assured, the merger's financing will not affect day-to-day operations or vendor relationships. Our goal is to maintain transparency and uphold our commitments to partners." say Mark to WWD. This merger marks a significant step forward for Saks Global in the Luxury Retail journey. As they look forward to continuing to provide exceptional experiences for their customers and creating new opportunities for their brand partners. Now I wonder, after this exciting merger, how will Saks Global redefine luxury retail and elevate customer experiences in the years to come? Stay tuned for more updates as we navigate this exciting chapter together! 🚀 #SaksGlobal #LuxuryRetail #Innovation #GrowthStrategy

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A small 1.3% rise in sales at US jewelers in April. The increase in revenue was fully spurred by a 2.5% increase in the average consumer expenditure per unit purchased. A few of the figures: Natural diamond jewelry sales rose 1%, Prices of LGD-set DERs declined, Loose LGD was 57% of loose diamond sales, but just 25% of revenue. Here is an issue: LG prices are down, but gross margins and unit sales are up. What does it impact gross profits? We took a look at that and have some findings. https://lnkd.in/dDw4s8MQ

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The best storage is sculpted space…

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I think the impact of these two industry luxury leaders will be very interesting to watch. This article focuses more on the beauty side, but there are many less obvious impacts this will have on multiple industries. Jewelry, apparel, accessories, marketing, the list goes on. When you take two known names and structure them to be more profitable and leverage the best of the branded and marketing teams, get ready for an explosion of growth potential. This will also add to an even further divide in the retail sector between department stores following the wealth division in the US. Naming the large department stores now, Saks Fifth Avenue/Neiman Marcus Group, Nordstrom, Dillard's Inc., Von Mauer, Macy's, JCPenney, Kohl's, then discounters.... not many national choices but they all have very focused demographic groups. Stay tuned!

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80% penetration of extended warranty is impossible! In any industry!! And especially in jewelry!!! Or so I thought… Signet Jewelers reported Q1 earnings last week. While Wall Street slammed the stock price nearly 20% (down 9.2% in Same Store Sales in North America is pretty dismal), I thought there were some intersting tidbits and learnings beyond the basic EPS. Most notably, CEO Gina Drosos mentioned how successful their push into “Lifetime Service Plans” has been, even citing an 80% penetration in engagement rings (https://lnkd.in/gyN7Nv_S.) I was certain she misspoke. How can you possibly achieve 80%? But later that day, on Mad Money (https://lnkd.in/gV9Jns6b), she doubled down on the statistic so I’m both impressed beyond words and dumbfounded. If you aren’t familiar with lifetime service plans, they are basically extended warranties (think of AppleCare on your iPhone). For a fixed upfront cost (Signet charges between 10-25% of the sales price), they promise to service the item for life (resizing, rhodium plating, retipping prongs, etc - https://lnkd.in/gS6P4D5a). Notably, Signet’s plan excludes diamonds or gemstones that are lost from the mounting.(Shameless Plug: Daniel’s includes lost stones in our lifetime warranty program!) Anyways, extended warranties are generally highly profitable and also a great way to get customers back in the store (free cleanings, free inspections) so most jewelry retailers focus on selling these and have for many decades. But 80% penetration??? I verified that I don’t have a single SKU at 80% penetration, much less my entire bridal department! What Signet is reporting is darn near incredible! They should be applauded. Back of the envelope, the numbers check out. They reported about $717M in Lifetime Service Plans in fiscal 2023 which is about 10% of their total revenue, and Engagement is about 50% of their sales, so $3.6B in engagement times 80% penetration times 15% of revenue equals $430M or about 60% of their total Lifetime Service Plan revenue. But to achieve that, they somehow have convinced 8 out of 10 in-store engagement customers to buy an extended warranty. Think about that for a second: 8 out of 10?!? I can’t even get 8 out of 10 people to agree the sky is blue! I want to know what their secret sauce is, especially since they must also be selling high percentages to their non-bridal customers to make up the rest of their service plan revenue. Whatever hypnotic power of persuasion is in the water coolers at their stores I want. Anyone have any insights???

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Synthetics will dominate bridal in 2024 and the collapse in 2025 when brides figure out they have been ripped off. Synthetic diamonds will go the way of CZ. Retailers who sell synthetic diamond engagement rings for huge profits will have to answer to brides who see their thousand dollar engagement rings offered for sale at WalMart for hundreds or even tens of dollars. Real natural diamonds will return as the ultimate gift of commitment because they are valuable as is the marital relationship. Millennial women in their thirties are not interested in tinder experiences. They want stable long term relationships and the opportunity to have children with men they love. Men also want loyalty, love and commitment. The synthetic engagement ring trend will blow away as will the jewelers selling them. Marriage is not a one night stand. Engagement rings are not costume jewelry.

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According to the latest Tenoris data, there was a surge in US jewelry sales. In October, sales increased 7.4%, aligning with retailers' observations of a sales uptick. This growth is particularly crucial as we approach the holiday season, following a stagnant period. The rise in October suggests a potentially stronger business outlook for November and December. Additionally, the boost in October sales has pushed year-to-date sales up 0.9% compared to the previous year. This indicates a positive trend in the jewelry market despite earlier challenges. The increase in sales signifies a potential recovery and optimism for the industry moving forward.

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The Row vs. Khaite vs. Toteme: The Battle of American Quiet Luxury. It seems Americans can’t get enough of paying top dollar for minimalistic clothing and leather goods. Whether it’s for a $6090 woven tote (The Row), $1150 for a simple black sandal (KHAITE), or $7040 for a shearling coat (TOTEME), consumers seem to want to empty out their pockets for these simple pieces. Maybe simple is a harsh word, and I’m sure there’s great intention to the design and quality of the product, but my concern is there truly enough room for American high end quiet luxury brands? While I do think #therow stands as the top brand to stick around for the long run, I can see either #khaite or #toteme to dethrone them in the next couple of years as the premium destination for quiet luxury goods. Both Khaite and Toteme show significant promise in the American luxury fashion world, and thanks to their incredible marketing and aesthetic, it will be tough for other American designers to compete with them (sorry Proenza Schouler, not even i feel you can stand a chance). What’s your take on this wave of pricey American brands and their take on minimalism and quiet luxury? #nyfw #newyorkfashionweek

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Had an insightful conversation with Shoshy Ciment of Footwear News on the topic of loyalty, resulting in a highly informative article by her. Grateful to have been a small part of this key discussion. Check out the article below to learn more about loyalty programs from Foot Locker, UA, Kith, Naturalizer and more. Link: https://lnkd.in/eXSNTr_K

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Need help or guidance with your Retirement and/or Succession Planning? We have strategies for you! Reach out!

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