The latest data, collected from more than 400 independent stores, revealed a 4.4 per cent decline in comparative overall sales dollars on a year-on-year comparison.
It was a similar story in August when sales declined by six per cent, and in July, when sales decreased by 11 per cent.
In September, comparative units sold decreased by 10 per cent compared with the past year and improved by 26 per cent on a two-year comparison. Comparative average sale – inventory only – increased by 9 per cent on a year-on-year comparison from $251 to $230.
Retail Edge general manager Leon Van Megen said that diamond-set precious metal jewellery decreased by seven per cent compared with 2022 – and that other product categories produced similar results.
“Colour gemstone-set precious metal jewellery sales dollars decreased 18 per cent compared with September 2022 and increased six per cent on the two-year comparison,” he said.
“Precious metal jewellery [no gemstone] shows sales dollars decreased eight per cent compared to September 2022 and improved 45 per cent on the two-year comparison.”
He continued: “Silver and alternative metals jewellery shows sales dollars declined 0.6 per cent compared with September 2022.”
Laybys was close to neutral in dollar terms between new orders and pick-ups or cancellations. Services, such as repairs, decreased by 25 per cent in dollar values, and Van Megen said this was an area retailers needed to be monitoring closely.
“This is an entrenched consumer pattern that may need more than a small shift in consumer sentiment to flip the switch from off to on,” he said.
“Repairs are still being done, you may need to make an effort to get, or keep, your share and someone else's.”
Special order numbers decreased by 18 per cent in dollar terms between new orders and pick-ups and cancellations.
Consumer confidence
These findings were again reflected in the latest ANZ-Roy Morgan Consumer Confidence Index report, which has now spent 30 consecutive weeks below the 80-point mark.
ANZ economist Madeline Dunk attributed the latest decline to weakening confidence about personal finances, with consumers tightening their budgets.
“Each of the five subindices declined, and there was a particularly steep drop in the ‘future financial conditions’ sub-index,” she said.
“Confidence among those households paying off a mortgage declined by 8.1 per cent while it fell 2.9 per cent for renters and 0.3 per cent for households who own their home outright. Meanwhile, inflation expectations rose to 5.4 per cent, reversing the falls seen in the previous two weeks.”
Sentiment regarding the Australian economy in the future has declined again, with 10 per cent of Australians expecting ‘good times’ for the economy over the next five years compared with 22 per cent expecting ‘bad times’.
2023 Jewellery Retail Sales September Results
Charts published with permission courtesy of Retail Edge
The charts below are based on data collected via Retail Edge POS software
at more than 400 independent Australian jewellery stores.
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