Even with coronavirus prompting more online sales, jewelry retailers, especially those selling engagement rings and ear-piercing services, will still attract a lot of traffic. Customers need in-person ring sizing measurements, and also want to see how a jewel’s color and cut will look against their own skin tone. Though the pandemic had been prioritizing essential retailers, now that Americans are more than four months into quarantine, many are anxious to seek out merchandise that allows them to regain a sense of independent expression, especially in light of a mask mandate. Jewelry is one way to regain a feeling of control and pride in one’s appearance, whether it is low-end costume jewelry or higher-end items. The Generation Z market, in particular, is especially interested in fashionable jewelry, and these consumers are always on the hunt for new retailers in this category. Look for jewelry retail brands Lovisa, Blue Nile, Kendra Scott, Gorjana, Mejuri, Brilliant Earth and Studs to expand their retail footprint throughout the U.S. over the next two to three years, and to be especially keen on attracting the millennial and Gen Z demographic.
Australian affordable jewelry brand Lovisa, expects to open 50 stores per year over the next three years in all U.S. markets, and has been concentrating on mainstream, super-regional shopping malls, either enclosed or outdoor. As the retailer is not yet a household name in the U.S., the brand seeks 600 to 900 s.f. of space in high-profile traffic areas with popular brands as co-tenants, such as H&M and Sephora. Lovisa, which opened its first U.S. store in November 2017, currently has 56 stores in 13 states and expects to open mall units in Connecticut, Massachusetts, Colorado, New York and San Diego before the end of the year. The brand caters to cost-conscious, trend-seeking females in their mid-20s.
Blue Nile, the online jewelry brand that specializes in engagement rings, has only five showrooms in the U.S., but after hiring a new CEO last year, the company expects to open approximately 15 new stores per year over the next five years. The retailer seeks 500 to 700 s.f. of space at upscale indoor or outdoor malls. This year the brand expects to open a new store at the Fashion Island mall in Newport Beach, Calif., and a new unit in Denver. The brand’s stores, which it refers to as “webrooms,” are a means for customers to look at and try on merchandise samples, but ultimately order online via in-store tablets.
Gorjana, with 17 units in three states, hopes to open an additional five to 15 new units over the next two to three years. The brand currently has 12 stores in California, three units in New York City and one in Scottsdale, Ariz. Sought after markets include additional units in Northern California, New York, Arizona and Texas. Potential future markets may include Connecticut, Chicago and Atlanta. The brand seeks space between 500 and 2,000 s.f. in high-end outdoor malls, lifestyle centers and retail street fronts in urban, mid-urban and resort communities. Demographics cover all ages, from trendsetter teens to affluent parents, who seek simple yet finely crafted jewelry that has a relaxed bohemian-style sensibility. Preferred co-tenants include Athleta, Warby Parker, Lululemon and Urban Outfitters. A new unit is expected to open by this fall in The Village at Corte Madera, in Corte Madera, Calif., in an inline space at the open-air shopping center, between a Johnny Was and a Solstice Sunglasses and across from a Cheesecake Factory. Space permitting, its retail layout features in-store engraving services on select necklaces, bracelets and rings. Gorjana already has a strong brand following, as its jewelry has been sold in all Nordstrom stores since 2015.
The digitally-native Canadian brand Mejuri secured $23M in Series B funding from Felix Capital last year and is using that money to continue its expansion into more U.S. markets. Look for the retailer to potentially open approximately five to 10 new units per year over the next two years. The brand, which currently has five stores in the U.S., looks for approximately 1,000 to 1,700 s.f. of space for its showroom retail stores, seeking units large enough to house its merchandise in house for same-day purchases, and provide in-store, ear-piercing services. Mejuri, which has hinted at going public with an IPO in the near future, prefers urban street-front shopping district areas within major metropolitan cities. In January, the brand opened a store in San Francisco, and in June opened two more units in Boston and Austin, Texas. A new unit in Atlanta is expected to be open by fall of this year. Mejuri is also eyeing space in Chicago and has expressed interest in additional markets in California, possibly San Diego. The brand is especially keen on opening pop-up shops in potential new markets prior to opening permanent stores. Its demographic market is educated millennial women interested in social issues, between the ages of 18 and 34. Mejuri distinguishes itself from its competitors by introducing new products weekly rather than seasonally, and markets its high-end, ethically-sourced jewelry directly to women, rather than someone buying diamonds for their partner.
The Texas-based Kendra Scott jewelry brand hopes to open 10 to 15 new stores per year over the next two years, and is especially focused on markets within the Northeast, notably in and around New York City and potentially the Hamptons, as well as throughout its surrounding states. Kendra Scott prefers space that averages 1,200 s.f. in Class A open-air or enclosed malls and urban street fronts. The retailer opened an 1,800-s.f. street-front unit at a former Alex and Ani store in July in an upscale shopping district in Pittsburgh, with Athleta, Apple, Lululemon and Coach as co-tenants. In June, another 1,800-s.f. unit opened at the upscale Highland Village Shopping Center in Houston, near a Johnny Was store and a Sweet Paris Crêperie & Café. The brand, which currently has 109 U.S. units, has a renewed focus on finding new manufacturing production and fulfillment centers in North America, especially in light of its Chinese hubs being impacted by coronavirus delays. Kendra Scott aims to make its in-store experience interactive with its “Color Bar” customization station and frequent in-store guest speakers and fundraising events.
Brilliant Earth, an e-commerce jewelry retailer since 2006, has recently been increasing it brick-and-mortar footprint in the U.S., and hopes to open three to five new retail showrooms per year over the next two to three years. The brand now has eight showrooms and plans to open a ninth by the end of this year in a 2,801-s.f. mixed-use space in Atlanta, with co-tenants such as Bella Bridesmaids and Kane Boutique. Brilliant Earth seeks space in downtown metropolitan areas with upscale, high-end co-tenants, including bridal-themed retailers, in mixed-use and upstairs retail units along urban street fronts where a high percentage of millennials live and work. Last November, Brilliant Earth opened a 2,000-s.f. unit in a penthouse suite on Philadelphia’s Walnut Street. The brand, which has an appointment-only format, uses recycled precious metals and jewels mined only from locations with ethical labor standards.
Though still a fairly new retail concept with just two units in New York City, Studs, a digitally-native earring jewelry brand, will expand its earring retail store and ear-piercing studio concept over the next three years after receiving $3M in funding from First Round Capital and other investors. Its space requirements are flexible, from its 850-s.f. street-front inline mixed-use space in NYC’s Nolita neighborhood, to its 150-s.f. kiosk set-up unit in NYC’s Hudson Yards retail shopping district that opened in February. This unit took over a space that formerly housed vending machines. The brand is open to all types of retail space, including temporary pop-up sites, urban street-front spaces and premium malls near large universities and tourist areas. Studs’ ideal customer is between the ages of 14 and 30, and the retailer has stated that it may begin marketing to the “mom” segment and seek suburban locations. The Studs concept aims for an approachable ear-piercing studio/store with professionals performing piercings with a needle versus a piercing gun. The Studs concept aims to be Gen Z and mom-friendly with its price point and interior space, so as to be less intimidating than a premium jewelry store or even a piercing parlor.
There is ample room for these jewelry store brands to take up vacant retail space. Danish-based Pandora jewelry will be less focused on expansion, instead prioritizing a revamp of its 380 existing U.S. stores with new store layouts that will feature in-house engraving services and “Charm Bars” for bracelet charm selections. Tiffany & Co. was purchased by Louis Vuitton Moët Hennessy (LVMH) last November, and its underperforming mall units may close as the brand focuses on international expansion. Signet Jewelers announced it is closing up to 300 stores, including many brands under its umbrella Kay Jewelers, Zales, Jared, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. Mall staple Claire’s, and its sister brand Icing, is putting the brakes on expansion due to its own bankruptcy announcement two years ago. The Alex and Ani retail jewelry brand is also planning to close some of its stores following lawsuits and company reorganization.
