Mejuri, a jeweler that built a following among young women with pieces worn by the likes of Taylor Swift, was already feeling the pain of costlier gold when prices touched $3,000 a troy ounce. But then gold hit $4,000, then $5,000. And kept going up.
At Mejuri, big boardroom decisions were soon tied to government inflation data, policy moves in Washington, and even reports of armed gangs turning to gold mining. Add in President Trump’s reordering of global trade that boosted costs further, and the jeweler was faced with an emergency, said Chief Executive Noura Sakkijha.
As prices catapulted higher, the company leaned in to 10-karat gold, vermeil plating, silver and even stainless steel. Mejuri rejiggered parts of a supply chain through which tens of thousands of ounces of gold flow each year. Expansion plans slowed for its roster of roughly 60 retail locations.
Even though Mejuri ate some costs from gold’s run-up, the company still had to raise prices. Executives say loyal customers—the firm derives about 55% of monthly revenue from repeat buyers—have come along for the ride. Now, as Mejuri adapts, its contingency planning includes a scenario that was previously unthinkable: gold nearly doubling again—to $8,000 a troy ounce.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing