The latest analysis of the Australian jewellery retail market by Retail Edge has confirmed declining sales across August.
Overall sales performance decreased by six per cent on a year-on-year comparison; however, it improved by 58 per cent compared with 2021.
It was a similar story for comparative units sold, decreasing by 4.9 per cent compared with the past year and increasing by 49 per cent on a two-year difference.
Comparative average sales (inventory only) decreased by a modest 1.1 per cent from 2022, reaching $240 from $243.
Regarding product categories, sales dollars from diamond jewellery decreased by 29 per cent on a year-on-year comparison, while colour gemstone jewellery sales dollars declined by 25 per cent.
Precious metal jewellery sales dollars decreased by 17 per cent compared with 2022, while silver and alternative metals were close to neutral.
The pattern in laybys was also negative, decreasing by 9.5 per cent in dollar terms between new orders and pickups or cancellations. It was a similar story in services, such as repairs, with a decline of 32 per cent.
“This is the seventh consecutive month of double-digit negative movement in this area,” said general manager Leon van Megen.
“This is an entrenched consumer pattern that may need more than a small shift in consumer sentiment to flip the switch from ‘off’ to ‘on’. This is not to say you should sit back and accept what is happening but make some noise about your services, skills and expertise.”
Special orders decreased by 37.1 per cent in dollar terms between new orders and pickups or cancellations.
Retail Edge collects its data from more than 400 independent jewellery stores across Australia.
Consumer confidence
These findings were reflected in the latest ANZ-Roy Morgan Consumer Confidence Index report.
“Retail sales data for July and ANZ-observed spending in August were also weak,” ANZ senior economist Adelaide Timbrell said.
“The confidence impact of falling real wages due to inflation continues to offset the positives in the economy and is likely the main factor that has kept the index in very weak territory for the past six months.”
The index has now spent a record 26 weeks below the 80-point mark, despite recent improvements in NSW, Victoria, and Queensland.
2023 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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