Discounters give fashion jewelry department more play - annual report

Discount Store News, July 21, 1986

Discounters Give Fashion Jewelry Department More Play

Discounters are attempting to sustain excitement in fashion jewelry with a broad range of styles and price points, while more aggressively pursuing their fine jewelry business as well.

One of the strongest fashion looks for fall is gold- and silver-plated necklaces, bracelets and earrings; price points will extend into the $15 range.

This bridge jewelry is mainly targeted at women aged 20 and older who want to supplement their 14-karat wardrobe with inexpensive but trendier items.

Previously, better fashion only played a very minor role in discounters' jewelry assortments; then, the focus was on more inexpensive pieces starting at 99^ price points and topping out at about $7.

Other strong 1986 looks--with some modifications--were carryovers from recent seasons, including bright color palettes, rope necklaces, bold earrings and antique- and heraldic-look pins.

After skyrocketing to more star-like status as a very hot category for three years, fashion jewelry is now becoming a more stable discount store business. Retailers said they don't expect to enjoy the same fast-paced sales as in years past.

This leveling off is also expected to hold true in fashion watches, which have become a staple rather than a novelty in discount stores.

No New Trends

A K mart buyer said he is cutting out one of the five lines of fashion watches the chain carried. He pointed out no new trends in watches h ave surfaced to replace the look born with the introduction of the Swatch Watch about two years ago.

In response, several chains are now refocusing on their fine jewelry mixes, in a bid to recover some of the higher margin sales lost to the fashion business. One of their tactics is introducing some of the styling and color seen in fashion pieces into fine jewelry assortments.

Caldor is adjusting its fine jewelry mixt to place a new emphasis on the middle and low end of the price spectrum. The chain is adding more color to its 14-karat area with onyx, ivory and more semiprecious stones like lapis. The pieces will retail in the $50 to $75 price range; the chain stocks gold neck chains and earrings priced up to $150.

The discounter is also changing its fine jewelry mix to lean more toward items priced at $50 and less. (At the same time, price ranges for fashion jewelry has risen at Caldor from $12 to $25 for items like manipulated chains combining lucite and metal or stones and metal.)

At K mart, 14-karat gold sales jumped 30% last year over 1984, and although the beginning of 1986 was slow, sales again shot up around Mother's Day, said a buyer.

The strongest 14-karat gold sales are in chains, although the buyer noted an upsurge in gold bracelets, and some interest in sterling silver.

Gee Bee is testing the limits of its entire fine jewelry department with the introduction of more varied lengths, thicknesses and designs in its 14-karat gold chain offerings. For example, a quadruple herringbone chain was brought in last Christmas and sold out.

T.J. Maxx, the off-price specialty chain, sidelined the fashion jewelry business and instead launched a test of 14-karat and sterling silver jewelry in three stores. The test involves a limited assortment of chain necklaces, bracelets, charms and earrings in stores in Orange, Conn., and Sudbury and Peabody, Mass.

Several chains have been giving their entire jewelry department stronger positioning through changes in department layout and fixturing.

In its latest prototype store in Proctorville, Ohio, Heck's placed jewelry at the front of the store, adjacent to apparel, moving it out of photo and consumer electronics.

Marshalls, which unveiled its newest prototype in two stores in Bedford and

Newton, Mass., gathered all accessory categories--jewelry, handbags, hats, hosiery, sunglasses and fragrances--into one department.

The number of showcases devoted to fine jewelry was increased to 10 in the Bedford store, about double the number in other Marshalls units.

The recent changes in department layout and assortment suggest retailers's confidence in the ongoing strength of both fine and fashion jewelry in their stores.

Industry observers point out department store jewelry looks have been filtering down to the mass market level faster than ever before--sometimes only a season or less later. They explain this is because jewelry design has begun to follow apparel trends in terms of color and style more closely.

Some of the fall fashion looks include:

* Gold- and silver-plated tailored pieces.

* Longer, 40-, 68- and 72-in. rope chains.

* Larger button, hooped or doorknocker earrings. Interest in extreme dangle earrings has fallen off.

* Fall brights in richer, deeper tones than previous seasons, such as jade, cobalt blue, red, pink and yellow.

* Neutral colors, including light and dark gray and taupe in addition to the usual black and winter white. The African influence will be apparent in wood pieces with splashes of jungle colors for accents.

* Darker colors like rust, plum, purple, dark blue, medium gray and forest green.