Retail Edge’s analysis of the sales performance in more than 400 independent Australian jewelery stores has revealed a softening of sales.
The data from April shows comparative overall sales dollar performance fell into negative territory with an 11 percent decline on a one-year comparison.
Comparative units sold showed a decline of nine per cent compared with 2022 and a decrease of 18 per cent on the two-year difference.
Retail Edge sales manager Mike Dyer said comparative average sales (inventory only) was in a modest decline of 1.5 percent; however, it improved by 19 percent on a two-year comparison.
“April is typically a challenging month with the public holidays and school holidays making for broken weeks and interrupted trading patterns,” Dyer said.
“However to get a negative impact of these proportions reinforces that a retail slowdown on consumer spending is now in place.”
Diamond-set precious metal jewelery declined by 24 per cent on a one-year comparison, while colored gemstone jewelery declined by six per cent.
Precious metal jewelery decreased by 11 per cent, while silver and alternative metals were down three per cent. Discounts were given on 30 percent of sales lines.
The pattern in laybys was close to neutral between new orders and pick-ups and cancellations. Dyer drew particular attention to a pattern in service and repairs.
“This is the third consecutive month of double-digit negative movement and removes any doubt about the consumer caution about spending,” he said.
“As previously stated, it is time to chase up the outstanding quotes that haven’t been confirmed yet and to lift the marketing exposure of the expertise of your services to lift the volume of new intakes.”
He added: “Customers in stores attract other customers into stores. Remember it’s not just about the repair job, it’s also the traffic flow and the opportunity to strengthen the customer relationship as well as sell the product.”
Special order numbers were positive, improving by five percent compared with the previous year.
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