Waiting for sales to buy luxury jewelry? You risk being disappointed
The crisis and inflation are beginning to be severely felt in households. Apparently, significant sales can be anticipated in January. This is what retailers across the Atlantic are announcing, across all sectors... or almost. Indeed, this will not be the case for luxury jewelry. This segment of the economy is not facing the problem of liquidating inventories like other sectors, as high-end jewelry is doing very well.
Luxury jewelry expected to be a hit for the holidays
"Jewelry is strong as the holidays approach," Marshal Cohen, chief retail advisor for NPD Group, told CNN. He expects consumers to turn to bling because they perceive it as a good "investment" type gift. Consumers will therefore be less reluctant to untie their purse strings for such a purchase.
Fine jewelry like diamond necklaces – and perhaps even an engagement ring – has always been a popular gift option. But recent trends are only reinforcing this popularity, according to Cohen.
There aren't many flashy new tech products to compete with jewelry this year. Moreover, jewelers don't have to deal with the problem of surplus stock that plagues most retail players.
"With no real inventories, jewelry retailers are serene and see no need to offer significant discounts," he said.
Luxury jewelry is not experiencing the crisis
Signet Jewelers, the largest US jewelry company owning Zales, Kay Jewelers, and Jared, highlighted these trends when publishing its results. The company also noted stronger demand for more expensive jewelry.
The more expensive they are, the greater the demand. Jewelry costing between €4,000 and €5,000 and €10,000 is particularly popular right now. This has prompted the company to expand its offering in this price range to satisfy its affluent clientele. It has also enriched its collection of laboratory diamond jewelry to satisfy bargain-hunting buyers in the current inflationary climate.
As the holiday season approaches, Signet stated that it has healthy inventory to meet demand. However, inventory is down from last year.
- Used Wempe Necklace
2023 luxury jewelry sales will be modest
Paul Zimnisky, an independent jewelry industry analyst, said Signet's comments indicate consumers should not expect large discounts or liquidations. As this sector is highly globalized, the same trends should be observed in Europe.
"I don't expect discounts. However, I do expect many jewelers to specifically stock affordable luxury jewelry," Zimnisky said.
