New York
CNN Business
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Retailers have has been signaled Big sales are coming for the holidays – with one big, sparkling exception.
Stores are looking to offload too much clothing, shoes, toys, gadgets and furniture. But jewelry can avoid all that deep discount.
That’s because sales of holiday jewelry have skyrocketed over the past two years. On a year-on-year basis, they grew 32% in 2021 and 26.2% in 2020, according to MasterCard’s SpendPulse report that tracks retail spending from November 1 to December 24, the peak period. for year-end gift shopping every year.
“The jewelry is in good shape as it gets ready this holiday season,” said Marshal Cohen, NPD Group’s chief retail advisor. He hopes consumers will be attracted to bling because they see it as a “good gift investment, so the consumer spending limit will feel better spending on jewelry.”
Beautiful jewelry like diamond studs and necklaces – and maybe even engagement rings – are by far popular gift options, but some trends are pushing its popularity even higher, Cohen said.
There aren’t many new flashy, extravagant tech products to compete with jewelry this year. More importantly, jewelers do not have to grapple with the excess inventory that has plagued much of the retail industry.
“There is no real overload position, [jewelry] retailers don’t worry” and don’t see the need to run big sales, he said.
Signet Jewelers — the largest jewelry company in the U.S. and owner of Zales, Kay Jewelers and Jared — highlighted these trends in its most recent earnings call, and the company also noticed these trends. stronger demand for higher priced items.
Signet CEO Gina Drosos told analysts on a call earlier this month: “This is reflected in the fastest jewelry growth in price luxury, followed by next in luxury. reachable. Signet says it is seeing the strongest sales growth at the $1,000 and above price points overall and in the $4,000 to $5,000 and $10,000 ranges, especially for furniture. bridal jewelry.
The company is increasing the number of higher-priced offerings to meet growing demand from more affluent customers, Drosos said. But Signet is also navigating the impact of inflation on value-focused shoppers by expanding its range of affordable jewelry, such as lab-created diamond pieces. much lower price instead of natural diamonds.
Going into the holiday season, Signet said it had a “healthy level of inventory” to keep up with demand, but stockpiles decreased year over year.
Joan Hilson, Signet’s Chief Financial Officer and Chief Strategy Officer, said in a statement earlier this month: “This gives us confidence that we are well positioned to deliver novelty with the level of resolution. Minimum ground clearance for vacation.
Paul Zimnisky, an independent jewelry industry analyst, said Signet’s comments indicate that consumers should not expect large purchases or liquidations.
“I don’t expect a price drop. However, I expect that more jewelers will likely stock up on lower priced commodity options,” Zimnisky said.
