Stevens, Pa.—After losing market share the last several years to discounters and other mass-market retailers, jewelry stores regained a 50 percent share of the $62 billion jewelry and watch market in 2006, according to the Jewelry and Watch Report, 2007, from Unity Marketing.

The study included in-depth qualitative focus-group research and a quantitative research study of 750 jewelry buyers' recent shopping preferences, behaviors and attitudes.

"Jewelry stores made a comeback in 2006," Unity Marketing President Pam Danziger said in a statement. "Jewelry shoppers, in their search for higher-quality merchandise and more fashion-forward designs, found that the service and expert advice available in jewelry stores was exactly what they needed. They were willing to trade-up for service and experiences that they couldn't find in discount and warehouse retailers."

The study highlighted Sterling Jewelers—which includes more than 800 Kay Jewelers, 135 Jared The Galleria of Jewelry stores and 341 regional chains—as making the most of jewelry consumers' shift toward more specialty retail. Specifically, the stores offer dedicated managers for the gold, diamond, watch and more generalized jewelry departments, who provide specialized service and expertise to the customer. They also use such selling methods as "white glove" presentation of watches, which makes the buying experience memorable for the customer.

According to the report, department stores, especially higher-end retailers such as Neiman Marcus, Nordstrom and Saks, and non-store jewelers such as e-tailers, also benefited last year from the trend.

"Specialty jewelry stores are aggressively pursuing the jewelry marketplace, giving the consumer the individualized treatment, access to experts and selection of unique merchandise they crave," Danziger said. "This is something that consumers just aren't finding in the cookie-cutter selections at discount department stores. This is both an opportunity and a cautionary tale for those who hope to compete for a slice of the jewelry and watch market."

Profiles of the nation's top 10 jewelry retailers are also included in the study, as well as details about where shoppers turned for their last jewelry or watch purchase, and what features about the shopping environment influenced their buying decision.

Form more information about the Jewelry and Watch Report, 2007, visit Unity Marketing's Web site, Unitymarketingonline.com.