Woman at a Jewelry Store

US JEWELRY SALES UP IN JULY, SPECIALTY JEWELERS CONTINUE TO SUFFER

Consumer demand for jewelry in the US market remained solid in July, but according to a report in IDEX Online, specialty jewelers lost some market share as for the second consecutive month. Moreover, specialty jewelry stores – mostly independents and a few small chains – have posted a decline in sales. Total sales, based on preliminary data, of fine jewelry and fine watches in the U.S. market in July 2016 were just under $5.7 billion.

 

Total sales of fine jewelry and fine watches in the US market rose by 4.1% in July 2016 year-on-year, according to preliminary estimates from the US Department of Commerce. This gain was about in line with the solid gains in the past few months.

 

By category, fine jewelry sales were up about 4% in July, and fine watch sales rose by 4.1%. Watch sales have been outpacing jewelry sales for a number of months, but demand for watches has slowed somewhat, according to both the government survey and our panel of jewelers.

 

Specialty jewelers, who generate a majority of their business from jewelry sales, posted a decline in sales of 2.2% percent – the second consecutive monthly decline. Other retailers who sell jewelry – mostly multi-line merchants such as Wal-Mart, J.C. Penney, and others – posted a very strong 8.4% in July.

 

IDEX Online predicts more moderate sales increases – perhaps in the 3% range – over the next few months, primarily because comparisons are much more difficult against solid growth in the second half of last year. Further, as the number of specialty jewelers decline, their aggregate sales levels will continue to diminish or show only modest monthly gains.

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