Data collected from more than 400 independent stores revealed that sales dollars declined by six per cent on a year-on-year comparison. With that said, on a two-year comparison, there was a decrease of just 1.1 per cent.
This report comes after an 11 per cent decline in sales dollars in December amid consumer concerns about inflation and cost of living pressures.
Comparative units sold decreased by six per cent on a one-year comparison and yet improved by two per cent on a two-year comparison. Analysis of comparative average sales (inventory only) revealed an increase of 2.5 per cent on a year-on-year comparison.
Diamond-set precious metal jewellery decreased by 20 per cent compared with the past year and 34 per cent over a two-year period.
General manager Leon van Megen said jewellery retailers must closely monitor this category.
“This can no longer be viewed as just a brief aberration; it is a solid trend,” he told Jeweller.
“Managing diamond stock has become critical to managing your total inventory effectively – it is the single biggest driver of aged stock. Those jewellers on buying trips should seriously consider what and how much they purchase.”
He added: “Jewellery businesses are buying differently. Make good buying decisions and monitor your aged stock.”
Colour gemstone jewellery decreased by 11 per cent on a year-on-year comparison, while precious metal jewellery without a gemstone or diamond declined by eight per cent.
Silver and alternative metals jewellery declined slightly (1.4 per cent) compared with the past year and improved by 1.8 per cent on a two-year comparison.
The pattern in laybys revealed a modest increase of 2.1 per cent in dollar terms between new orders and pickups and/or cancellations. Services, such as repairs, decreased by 2.1 per cent on a year-on-year comparison.
The strongest performing category was special orders, with an increase of 23.4 per cent in dollar terms between new orders and pickups and/or cancellations.
This analysis was in alignment with recent ANZ-Roy Morgan Consumer Confidence research, revealing declines in New South Wales, Queensland, Western Australia, and South Australia, contrasting with an improvement in Victoria.
The Consumer Confidence Index has now spent 52 consecutive weeks below the mark of 85.
That said, while the index is 4.3 points below where it was in the same week of the past year, it remains 4.5 points higher than the 2023 weekly average of 78.
2024 Jewellery Retail Sales January 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.
More reading
Pleasing trends in jewellery sales ahead of holiday season
Silver linings in latest Australian jewellery market analysis
Australian jewellery retailers wrestling with decreasing sales
Tough sledding: Australian jewellery sales decline in August
Jewellery sales decline in July, consumer confidence on the rebound
Cause for celebration for jewellery retailers
Retail Edge urges caution in the latest market assessment
Weakened sales headlines April for jewellery retailers
Modest sales wins for Australian jewellery retailers
Surprise reversal pattern observed in Australian jewellery sales