The high-end jewelry business is taking a big hit in the current economy, with many huge retailers having gone into bankruptcy or reducing their workforce and closing locations. The leading internet diamond retailer BlueNile.com is hiring, experiencing strong growth and just had their biggest cyber-Monday ever. Below are Fast Facts from the Fox News Brainroom on diamond production and demand.
• Prices for rough, uncut rocks have risen more than 40 percent since February
• On Black Friday 2009, jewelry retailers reported the biggest jumps in the average dollar amount consumers spent per online order, up nearly 25 percent.
• Zale Corp., which operates 1,930 retail jewelry locations across the U.S., Canada and Puerto Rico, reported a net loss of $189.5 million for the fiscal year ending July 31 and a 16.8% drop in revenue.
• Some of the larger U.S. jewelers – such as Fortunoff and Finlay Enterprises Inc. – filed for bankruptcy this year.
Demand for Diamonds:
• Despite the global recession, demand for diamonds dropped only 8 percent in 2008.
• Global diamond-mine production is forecast to fall to $8 billion in 2009 from $13.1 billion in 2008.
• The four diamond miners that control 90% of global production have slashed production this year.