Following a nine per cent decrease in September, sales declined again in October, this time by eight per cent on a year-on-year comparison.
Despite the sour results, sales in October remained nine per cent higher on a two-year comparison. Unit sales decreased by 10 per cent, which analysts attributed to a return to normal post-COVID trading’.
It wasn’t all bad news – comparative average sale increased by four per cent on a year-on-year comparison and improved by eight per cent on a two-year comparison ($249 from $231).
“Shifting consumer tastes is demonstrated in the different categories. Diamond precious metal jewellery has seen a significant drop, with a 29 per cent decrease in performance compared with the past year,” general manager Leon Van Megen explained.
“Meanwhile, colour gemstone jewellery sales increased by 37 per cent on a two-year comparison; however, that is from a much smaller base [$450,000 compared to $1.9 million].”
Sales of precious metal jewellery without a gemstone declined by six per cent on a year-on-year comparison, while silver and alternative metals decreased by 17 per cent.
“The movement in average sale and the increase in colour gemstone jewellery sales suggests consumers are still buying – they’re just being selective as to what they are buying,” he continued.
“Those buying habits are changing. While the year-on-year comparison is challenging, the overall story sees retail jewellers largely the same as they were two years ago. The COVID bubble continues to deflate.”
Of the more than 400 independent retailers analysed, 32 per cent of sale lines were discounted.
The pattern in laybys was positive, increasing by 10 per cent in dollar terms between new orders and pickups or cancellations.
For repairs, revenue decreased by 17 per cent in dollar values between new orders and pickups or cancellations.
“For November and December, this means using the data to understand what changing consumer patterns look like in your area,” Van Megen added.
“Purchase stock with care and sell with passion.”
In terms of special orders, sales decreased by 4.2 per cent in dollar terms between new orders and pickups or cancellations.
2023 Jewellery Retail Sales October 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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