An analysis of more than 400 independent jewellery stores from Retail Edge Consultants outlined a decline of 6 per cent in sales in August on a year-on-year comparison.
Comparative overall sales performance decreased further (11 per cent) on a two-year comparison. Unit sales declined by 7 per cent by the same metric, with the average retail sale of items reaching $256.
This follows a modest 2.9 per cent increase in July, with that report revealing that comparative units sold had improved by 4 per cent.
Returning to the August analysis, diamond jewellery sales decreased by 8 per cent on a year-on-year comparison and 16 per cent when compared with two years ago.
Colour gemstone jewellery increased by 7 per cent compared with August of the past year, while silver and alternative metals jewellery improved by 2.7 per cent.
There were positives to be found elsewhere, with laybys increasing by 9.5 per cent in dollar terms between new orders and pickups and cancellations. It was a similar story in special orders, with an increase of 3.9 per cent highlighted.
Finally, there was a sharp decline in services, such as repairs, with a drop of 25 per cent in dollar values noted.
Better days ahead
Addressing a recent Australian Bureau of Statistics report on retail spending, outgoing Australian Retailers Association CEO Paul Zahra said that making the most of key shopping events in the months ahead was crucial.
“As tough times continue, we are seeing the so-called ‘lipstick effect’ play out – where people are having to do more with less," Zahra said.
“This remains one of retail’s most difficult years – with a continued slowdown in discretionary spend, high business costs and inflation along with ongoing challenges such as retail crime, supply chain disruptions, and the most significant workplace relations reforms in decades.
He added: “Discretionary retailers will be counting on the peak season ahead to replenish their cash reserves. Major shopping events in coming months include Halloween, Black Friday, Cyber Monday and the festive period, which will hopefully provide a much-needed boost to the industry."
Zahra added that Australian consumers prioritise household essentials amid adverse economic conditions.
2024 Jewellery Retail Sales August 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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