Would You Like a Velvet-Lined Heart-Shaped Box for this iPod?

Jeweler Tiffany & Co. recently announced weak comp store growth, due to a 2% decline in its U.S. stores. This news arrives despite a 10% increase in sales at their flagship New York store and 12% growth in international stores. With approximately 160 stores around the world (a third of which are in the U.S.), Tiffany is feeling the economic sting that many other high-ticket companies like American Express are beginning to experience. This indicates that the financial burdens of Americans are being shared across class lines, and aren’t just the worries of lower- to mid-income folks.

Of course, customers will continue to buy jewelry, and with Valentine’s Day fast approaching the need is about to reach its first spike of the year. However, recent positive sales figures from retailers like Best Buy, Toys R Us, and Barnes & Noble indicate that many of the sales over the end of the year were for more practical and less ornamental products. Flat screen HDTV sets, video game consoles, iPods, and GPS devices were among the season’s hottest sellers. While it’s easy to look at Tiffany’s dip in the U.S. as a harbinger of rough economic seas ahead, this is really a prime opportunity for independent and specialty stores to get creative and offer financially cautious customers the chance to think outside of the jewelry box for Valentine’s Day. A string of pearls or a Nintendo Wii? Hmmm…