The latest market analysis from Retail Edge has noted a drop in sales for Australian jewellery retailers in November compared with recent years.
Reports using data compiled from more than 400 stores show comparative overall sales dollars dropped 4.1 per cent compared with November 2021 but rose 3.7 per cent compared with November 2020.
Comparative units sold shows a decrease of 6 per cent compared with 2021 and a decline of 7 per cent on the two-year comparison.
Retail Edge sales manager Mike Dyer said there was a straightforward explanation for the observed decline.
“Just to give you some context, in November 2020 and 2021 there was a surge in post-lockdown spending which accounted for significant growth over historical norms. Without that same surge this November the numbers are a little flatter,” Dyer explained.
“Results across the product categories reflect the no post-lockdown surge in spending this November. The drill down into the sales dollars numbers shows diamond-set precious metal jewellery was down 22 per cent compared with November 2021 and 4.8 per cent on the two-year difference to November 2020.”
Gemstone-set precious metal jewellery sales dollars declined 8 per cent compared with November 2021 and held an increase of 6 per cent on the two-year comparison to November 2020.
Precious metal jewellery sales dollars were down 8 per cent compared to 2021, while silver and alternative metals jewellery sales dollars reached positive territory at 0.8 per cent.
The pattern in services and repairs showed a decrease of 23 per cent in dollar values between incoming orders and pickups or cancellations. The pattern in laybys meanwhile marked an increase of 4 per cent in dollars between new orders and pickups or cancellations.
"Once again for the fifth consecutive month it continues to indicate that consumers may be planning and budgeting their jewellery purchases," Dyer noted.
“As previously stated, if services are a good part of your business, and this pattern is also being reflected in your business, it highlights the need to lift the volume and frequency of your marketing noise around the services area of your business.”
Finally special order numbers spiked 38 per cent in dollar values between new orders and pickups or cancellations.
"If this is reflected in your store, are these requests for items that you have never stocked? Or are there a number of items that are variations of existing stock items? These could point to consumer demand items for December," Dyer explained.
"Remember, if you don't ask questions, you won't get answers. Exploring the questions above will give you perspective, answers, and better questions for your business."