Lessons From a Failed Retailer

by Abe Sherman – CEO, BIG – Buyers Intelligence Group

February 20, 2024

There were quite a few conversations that inspired me to write this article, all of which occurred during back-to-back tradeshows. I lost count of the number of manufacturers, sales reps and jewelers, some of whom I’d never met, who thanked me for the work we do for them and for the industry. I was surprised by the number of people who told me how much they enjoy reading these articles – and that it feels like I’m writing to them, about their own issues. There’s a reason for that, which I’ll get into in a bit.

One jeweler in particular stood out for something he shared with me; how easy the Centurion show was for him. He had run his Balance to Buy™ reports for all of the vendors he had appointments with and emailed them to his reps in advance of the show. All of those reps were prepared with a list of which aged items to send back and suggestions for new styles based on his category and price point sell-though data. It was the first time in his decades of attending tradeshows that he didn’t even have to ask to stock-balance – the companies were proactive about it. The process of retailers sharing sales and on-hand inventory data with their suppliers has led to a sea change in our industry. I couldn’t walk down an aisle without someone commenting on how our Balance to Buy and BIG Network teams have helped them.

Then I heard from a jeweler who told me that he was speaking with another ‘consultant’ in the industry who asked him why he would work with someone who failed as a retail jeweler (they were referring to me). I’ve been hearing these comments for years and I thought I’d share some background for those of you who don’t really know me or my story.

My father opened our first store in 1968 when I was 10 years old, the youngest of five boys. I worked in the store on Saturdays and after high school when I started driving. My father was a store manager for a small chain but never owned his own business before. He didn’t understand merchandising or inventory management, let alone marketing, financials, or gemology. Ours was the stereotypical Mom & Pop business. I spent 30 years in the family business and as I’ve said countless times, I either made or was exposed to every mistake that has ever been made in that environment. After high school, I drove to California and spent 7 months at GIA, then joined AGS and attended my first Tucson show in 1980. I joined a Scull group when I was 26 years old, which is when I began learning (admittedly poor lessons) about financials.

After enduring the family dynamics and economic swings of the 30 years I spent in retail I was burned out by the time I turned 40. It was at this time I was offered the position to run the buying group that Scull groups wanted to start. BIG, if you didn’t know, started as a buying group over 25 years ago. When I was struggling with the decision to leave the only thing I knew (the retail jewelry business), taking on the responsibility of a start-up buying group, one of the members in our Scull group told it to me straight. He said I would be much better doing consulting than spending my days in a retail store. I sold my store to one of my brothers and never looked back.

I began learning the retail jewelry business when I got out of the retail jewelry business.

I learned financials inside and out, what merchandising is really all about and how marketing and positioning is different from advertising. But the most important lesson I learned was to align myself with the very best people in our industry who share my passion to help others learn how to improve their businesses. There are more than 30 people working here at BIG and even though I may be the face and name most people know, I am far from the most talented. I am grateful for the team we have built over the years; they are the very best in the industry.

While it was painful not understanding why things were so challenging when I was in retail it is now our company’s shared mission to alleviate that pain for as many of you as we can. And this is why it seems that I am writing to you about your own issues; because I am. Because I’ve lived them.

You might still hear from one or two people who will ask the question; Why would you want to work with a failed retailer? Not knowing what I should have learned from the family business is what has driven me on this quest to understand our industry at a very deep level and after 24 years, still provides the passion to share this with our industry. And to those of you who can’t help but to ask our clients that question, thank you for inspiring this article.