Are Brick-and-Mortar Jewelry Stores Still Profitable in the US?

Jewelry stores have been around for centuries, offering everything from engagement rings to custom-designed luxury pieces. But in today's fast-changing retail landscape, is running a brick-and-mortar jewelry store in the U.S. still profitable?

Short answer? Yes.

Despite competition from online retailers and rising operational costs, brick-and-mortar jewelry stores continue to generate solid profits—if managed correctly. With industry revenue expected to reach $68.4 billion in 2025, and gross margins averaging between 42–50%, the jewelry business remains one of the most lucrative retail sectors.

But what exactly makes a physical jewelry store successful? This article breaks down the profit potential, key financial factors, market trends, challenges, and real-world case studies that show why (and how) jewelry retailers can thrive in today’s market.

Running a jewelry store isn’t cheap, but the numbers prove that physical jewelers can turn a solid profit.

• Industry Revenue: The U.S. jewelry market is estimated at $68.4 billion in 2025, with nearly 75,500 jewelry stores operating nationwide.
• Gross Margins: On average, jewelry retailers achieve 42–50% gross margins, thanks to the high markups on fine jewelry.
• Net Profit Margins: After covering expenses, most stores see net margins between 6–15%, with well-managed businesses hitting the higher end.
• Average Store Revenue: A typical brick-and-mortar jewelry store brings in around $900,000–$1 million in annual sales, though high-end retailers can earn millions per location.

These numbers prove that there’s still plenty of money to be made in the jewelry business. However, profitability depends on how well a store manages key financial factors, such as inventory costs, rent, labor, and pricing strategies.

Several factors determine whether a jewelry store makes or loses money. Let’s break down the most important ones:

Jewelry is one of the few retail categories where markups of 100% or more are common. Stores typically use keystone pricing (doubling the wholesale price) or more, allowing for strong gross margins.

However, pricing must be strategic—if a store competes solely on price, it risks shrinking its profit margins. The most successful jewelers:
✔ Maintain premium pricing on high-value items (e.g., natural diamonds, luxury watches).
✔ Offer flexible financing (buy-now-pay-later options like Klarna).
✔ Balance affordability with exclusivity (e.g., limited-edition collections).

Example: Lab-grown diamonds, which cost retailers much less than natural diamonds, allow for higher margins while still offering “affordable luxury” to price-conscious consumers.

Jewelry inventory is expensive to carry, and turnover is typically slow. A diamond ring might sit in a display case for months before selling, tying up cash flow.

Profitable stores manage this by:
✔ Stocking more of what sells fast (e.g., gold chains, stud earrings).
✔ Using memo agreements (borrowing high-end pieces from suppliers instead of paying upfront).
✔ Offering custom designs, which require little inventory but deliver high profits.

Example: Some jewelers also buy old gold jewelry from customers, refining it into new pieces—a smart way to reduce raw material costs.

A prime retail location can make or break a jewelry store’s profitability.

• High-end districts (luxury malls, city centers) = more foot traffic, but high rent (5–10% of revenue).
• Secondary locations (just off main streets) = lower rent, but risk of reduced visibility.

To balance rent and profitability, successful stores:
✔ Negotiate favorable lease terms with landlords.
✔ Consider smaller showroom-style spaces instead of large retail stores.
✔ Use pop-up shops and local partnerships to test locations before committing.

Jewelry is a high-touch purchase—people want to see, feel, and try on pieces before buying. This is a major advantage physical stores have over online retailers.

✔ Luxury service sells: Stores offering private consultations, repairs, and personalized shopping experiences see higher conversions.
✔ Store ambiance matters: A beautiful, well-lit showroom makes jewelry more desirable.
✔ Loyalty programs: Repeat customers are gold—offering free cleanings, VIP discounts, and anniversary reminders helps keep them coming back.

Example: Tiffany & Co. recently revamped its NYC flagship store into a luxury experience center, leading to a massive increase in foot traffic and sales.

Despite the profit potential, jewelry retailers face several challenges that can impact profitability:

• Labor costs are increasing, especially for skilled jewelers and experienced salespeople.
• Gold and diamond prices fluctuate, affecting inventory costs.
• Insurance & security costs are rising due to theft risks.

Solution: Stores are investing in better security, automation, and staff training to improve efficiency and reduce shrinkage.

While most jewelry is still bought in-store, online competition is growing. Consumers research products online, compare prices, and sometimes choose direct-to-consumer brands over traditional jewelers.

Solution: Smart jewelers are embracing omnichannel strategies—combining online browsing with in-store experiences. Features like virtual try-ons, appointment booking, and influencer partnerships help bridge the gap between digital and physical retail.

• Lab-grown diamonds are booming, forcing stores to adjust their product mix.
• Sustainability matters—many shoppers prefer recycled metals and ethically sourced gems.
• Younger buyers prioritize experience over possessions—stores need to create engaging, social-media-friendly spaces.

Solution: The most profitable jewelers are adapting to new trends, rather than resisting them. Offering custom jewelry, sustainability-focused collections, and digital engagement tools keeps them ahead of the curve.

Absolutely—but only if done right. The most profitable jewelry stores don’t just sell rings and necklaces; they sell an experience, trust, and long-term customer relationships.

💡 High profit margins, strong market demand, and a preference for in-person shopping make jewelry retail a lucrative industry.
💡 However, success depends on smart inventory management, pricing strategies, and adapting to modern consumer preferences.
💡 The future of jewelry retail isn’t just physical or online—it’s a mix of both.

For store owners willing to invest in innovation, customer service, and smart financial management, the brick-and-mortar jewelry business remains a sparkling opportunity.