Retail Edge has released its analysis of the performance of the Australian jewelery market in January, noting an unusual change in pattern in two key areas of examination.
Overall the data for the month was positive, with comparative overall sales dollar performance increasing 7 percent compared with 2022.
Comparative units solid provided a notable 11 percent increase on a year-by-year comparison.
Meanwhile, comparative average sales (inventory only) showed a decrease of 4.8 percent compared with the same period in the previous year, declining to $193 from $203.
Retail Edge sales manager Mike Dyer said the data was an unexpected breakaway from recent years.
“My thoughts on these top-level results lead to cautious optimism, be aware but don’t be alarmed. Overall the pattern in the past two to three years has been an increasing average retail of items and a slight decrease in the quantity of items being sold,” he said.
“January 2023 is the first month I can recall that the key indicators of average retail and quantity of items were both reversed on that longer period pattern.”
He added: “This is every reason to check the performance of your store to see what your pattern is. If the landscape is changing then you may need to review, revise and refresh your plan for calendar 2023.”
In terms of product categories diamond-set precious metal jewelery declined 15 per cent compared with January of 2022 and 2021. A similar phenomenon was noted in silver and alternative metal jewellery, with sales increasing 10 per cent on a one-year and two-year comparison.
Gemstone-set precious metal jewelery sales increased 3.7 per cent compared with 2022, while precious metal jewelery climbed 2.7 per cent on a year-by-year comparison.
There was a significant 27 percent increase in layaways between new orders and pick-ups or cancellations. Data from special orders likewise showed a 33 percent increase.
The pattern in services, such as repairs, mirrors this pattern with an increase of 11.5 percent in dollar values between new orders and pick-ups or cancellations.
“This leads us to the question, are consumers planning better and spending with caution?” Dyer asked.
“This repeated pattern across these three areas is exciting in the fact that it points to positive activity and good potential cash inflow as these items are completed, paid and collected. Taking these into account, you need to review your buying and restocking plan, before you get too deep into your buying season.
Retail Edge’s data is collected from POS software located in more than 400 independent jewelery stores across Australia.
2023 Jewelery 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 jewelery stores.
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