Mixed Christmas for Australian jewellers

By Sonia Nair

Jewellery retailers reported mixed trading over Christmas, with a large percentage reporting a slow start to the key festive period and a drop off in gold jewellery sales.

Balwyn Jewellers owner Dennis Coleman said his store, in Victoria, was quieter than last year. Despite ARA statistics projecting an upsurge in post-Christmas sales, Coleman said consumers weren’t digging deep after Christmas either.

“Usually between Boxing Day and New Year’s Eve it’s as good as Christmas. This year, for the first time ever, sales are down from the previous year,” he said.

Coleman said a 50 per cent-off Sale throughout his store did little to improve sales.

John Jurgs of Argyle Jewellers in Brisbane held in-store promotions and discounts off older stock but unlike Coleman, Jurgs encountered success with a very busy two weeks after and before Christmas. Peter Turner of Flair Jewellery in Warana, Queensland, had a similar experience to Coleman.

“It was a lot quieter. I think people don’t have the disposable income to spend on luxury items like they used to because they’re reeling from the increases in water, electricity and interest rates,” Turner said.

To help entice consumers into his store, Turner changed his marketing strategy to include electronic media but said it still had little effect on sales.

Although Flair Jewellery reported a dip in stock sales, Turner found demand for repair and restringing services increased.

Other independent retailers focused on customer service to get consumers spending. Glenda Bishop of Bishops Jewellers in North Canberra said, “Consumers are finding that they’re just not getting services from the major retailers. We easily perform these services in a short time frame for a nominal fee and consumers know this.”

Despite the shaky economic outlook, many retailers around the country reported positive stock trading with a few even experiencing an upsurge from the previous year.

Yvonne Reid of Cardiff Jewellers and Ronald Cummins of Cummins Jewellers in Lavington, both in New South Wales, said sales had increased from 2009, although Reid admitted that the first week of December was worse than expected.

Darren Ripper of Faith Jewellers in Mount Gambier, South Australia, also said his store was as busy as last year and performed better than expected, despite the negative outlook preceding Christmas.

However, the retailers that Jeweller spoke to were unanimous in their observation that gold jewellery sales had become more challenging.

Jurgs said he sold a substantial amount of gold over Christmas but conceded that the pieces were mostly rings, pendants and earrings that were offered as supplements to existing purchases as opposed to big, chunky chains and bracelets.

Two retailers surveyed noticed a trend for silver jewellery, branded jewellery and products between the price points of $100 and $200.

Cummins used silver-filled gold instead of solid gold to boost his sales without compromising his gold jewellery stock.

Thomas Sabo and Pandora were two brands that stood out for retailers over Christmas, despite speculation that the beads and charms market is slowing.

Cummins noticed that “major companies [brands] who merchandise well with superior packaging, marketing and national advertising do well”.

Similarly, Jurgs claimed people were becoming “more brand-oriented now”.

Australian Retailers Association (ARA) statistics suggest that trade from December 12 to 18 was worse than 2009 for over 65 per cent of retailers and more than 45 per cent of retailers traded below 2009 levels between December 19 and 24.

However, at the time of publication the ARA forecasted a 3 per cent increase in post-Christmas sales from Boxing Day to early January.

More reading:

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Posted January 11, 2011