They're going to be a bit hesitant to buy spinel or exotic tourmaline. Facing the Discounters Independent retailers say their customers went for higher price points in 2000, probably because the lower-end market has been taken over by discounters and department stores. Consumers are continuing to buy more expensive jewelry, said 54 percent of retailers, while only 6 percent found customers were buying lower price points. That's always been the heart of our business. A lot of people are overextended.
Jewelry is a luxury item they can cut back on.
Independent retailers seem about ready to concede the low-end market to discount chains and department stores. In fact, low-end discounters are identified as the biggest problem facing the industry today by 24 percent of retailers. They're more prevalent. Discount department stores are not only less expensive, but convenient for shoppers who are in the store already and stop by the jewelry counter. On the positive side, discounters have opened up new markets for colored stones like tanzanite and, before that, blue topaz.