Jewelry Store Business Overview

A jewelry store sells fine jewelry, watches, and precious metals to customers. These retail establishments offer various products including rings, necklaces, bracelets, earrings, watches, and other decorative pieces made from materials like gold, silver, diamonds, and other gemstones.

The most common business models in jewelry stores include:

• Traditional Retail Store: A physical retail location that displays and sells jewelry directly to customers, often providing personalized service and expert guidance
• Online Jewelry Store: An e-commerce platform that sells jewelry through a website, offering convenience and a wide selection without the overhead of a physical location
• Hybrid Model: Combines both physical and online stores to reach customers through multiple channels while providing in-person services

Related: Checklist To Start A Business

How Do Jewelry Stores Make Money?

Jewelry stores primarily generate income through the sale of jewelry items and watches to customers. They purchase inventory from manufacturers or wholesalers and sell these pieces at a markup to create their profit margin.

Additional revenue sources for jewelry stores can include:

• Engraving Services: Adding personalized inscriptions to jewelry pieces and watches
• Repair Services: Offering jewelry repair, ring sizing, stone setting, and watch maintenance services
• Custom Design: Creating unique, made-to-order pieces based on customer specifications, working with clients to design personalized jewelry
• Appraisal Services: Providing professional evaluation of jewelry pieces for insurance or resale purposes
• Trade-In Programs: Accepting pre-owned jewelry in exchange for store credit or purchasing estate jewelry for resale

Industry Statistics

Jewelry stores operate under NAICS code 448310 – Jewelry Stores. These businesses sell new jewelry, timepieces, sterling silverware, and plated silverware. They also provide services like engraving and repairs alongside their retail operations. Here are some statistics about the jewelry store industry.

Jewelry Store Industry Size & Growth: The jewelry store industry generated $75.8 billion in revenue last year. The industry saw a yearly growth rate of 7.6% over the past five years. Growth projections remain positive, at a slightly lower 4.1% annual increase, supported by increasing consumer spending and rising demand from high-income households. (IBISWorld)

Number of Jewelry Stores: There are 70,065 jewelry stores across the market. The largest company, Signet Jewelers Limited, controls about 8.7% of the market share, followed by Compagnie Financiere Richemont Sa with 4.1% and Berkshire Hathaway Inc. with 3.5%. (IBISWorld)

Jewelry Store Profit Margin: Jewelry stores typically maintain net profit margins averaging 6.2%. (IRS)

States with Most Jewelry Stores: Population centers with high-earning demographics tend to have the highest concentration of jewelry stores. California, New York, Florida, Texas, and Illinois have the largest number of jewelry store establishments. (U.S. Census Bureau)

Also See: Ideas for Naming a Jewelry Store

Costs To Start a Jewelry Store

Starting a jewelry store typically costs between $50,000 and $500,000. This range accounts for different store sizes and locations, from small boutiques to larger retail spaces. The total amount needed depends on factors like store size, location, and initial inventory selection.

There are several expenses when starting a jewelry store, but here are some of the more expensive items to plan for:

Initial Inventory: A basic jewelry store inventory usually ranges from $20,000 to $250,000. This includes a mix of precious metals, gemstones, and finished pieces to provide customers with enough variety. The amount spent on inventory often represents the largest portion of startup expenses.

Store Equipment and Security: Display cases, point-of-sale systems, and security equipment typically cost between $15,000 and $50,000. This includes reinforced display cases, specialized lighting, security cameras, safes, and alarm systems to protect valuable merchandise.

Retail Space and Buildout: Leasing and renovating a retail space generally costs between $10,000 and $100,000. This covers the security deposit, the first month’s rent, and modifications like lighting installations, display areas, and consultation spaces.

Insurance: Insurance coverage for a jewelry store ranges from $3,000 to $12,000 annually. This includes coverage for inventory, liability, theft, and other risks associated with handling valuable merchandise.

These estimates provide a general idea of startup costs, but actual expenses will vary.

Resources:
American Gem Society
Independent Jewelers Association
Jewelers Board of Trade
Jewelers of America
Manufacturing Jewelers & Suppliers of America