The year began with a cloud of uncertainty hanging over the jewellery industry. Economists were predicting recession, rising inflation and a possible decline in consumer spending.
These predictions cast a shadow over the independent jeweller, raising concerns about their ability to weather the impending economic storm.
Despite these challenges, the independent jeweller has shown remarkable resilience so far in 2023.
They have navigated the market with agility and adaptability, a trend that appears to be continuing as the holiday season begins in earnest.
The Thanksgiving weekend brought positive results for our independent retailers, who saw a commendable 3 percent increase in gross sales and an impressive 5 percent increase in average retail price, despite a marginal 2 percent decline in units sold.
Over the same weekend, the diamond categories showed mixed results, but with promising indicators.
In particular, there was a marginal decline in gross sales of less than 1 per cent, coupled with a commendable 6 per cent increase in units sold.
However, there was a 6 per cent decline in average retail sales.
Independents continued their upward trajectory in the last week of November with a significant 25 per cent increase in gross sales.
Units sold showed strength with a robust increase of 13%, while the average retail price increased by 11%.
In particular, our popular diamond categories performed remarkably well in the last seven days of November, with a staggering 16 per cent increase in gross sales and an impressive 18 per cent increase in unit sales.
Despite a 2 per cent decline in average retail sales, the overall results underline the potential for continued success in the retail landscape.
Let’s look at the results for the full month of November. The collective performance of our retailers continued to impress, contrary to some expectations.
Overall, our independent retailers had a robust month, with a 6 percent increase in gross sales, a notable 2 percent increase in units sold and a commendable 4 percent increase in average retail sales compared to November 2022.
Pearls proved to be a standout category, with a notable 15 per cent increase in gross sales and an impressive 26 per cent increase in average retail sale, despite a 9 per cent decline in units sold.
Pearl rings took the spotlight with a stellar 39 per cent increase in gross sales, a 22 per cent increase in units sold and a 13 per cent increase in average retail price.
In addition, pearl bracelets performed strongly with a 36 per cent increase in gross sales and an outstanding 71 per cent increase in units sold.
The gold jewellery categories as a whole excelled, with an overall increase in gross sales of 11 percent, coupled with a 5 percent increase in both units sold and average retail price.
The watch category showed remarkable performance across the board, with an 11 percent increase in gross sales, a 3 percent increase in units sold and an 8 percent increase in average retail price.
Coloured stone jewellery also did not disappoint. The category posted a commendable 6 per cent increase in gross sales and units sold, with the average retail price remaining stable.
Of particular note were the performances of coloured stone necklaces (34 per cent increase in gross sales) and coloured stone bracelets (27 per cent increase).
While sterling silver and alternative metal jewellery experienced slight declines in all key performance indicators, these were less than 1 per cent.
Within the diamond sector, compelling shifts have emerged that paint a nuanced portrait of consumer behaviour.
While total gross sales of diamonds fell by 2 per cent in November and the average retail value fell by 7 per cent, unit sales showed a resilient 5 per cent increase, suggesting a strong appetite to buy, albeit at potentially lower price points.
Significantly, three of the four diamond categories experiencing a decline are bridal related. This observation suggests that the number of weddings may be gradually returning to pre-COVID levels.
