Jewelry Sales Expected to Slip This Holiday Season
US jewelry sales will fall over the upcoming holiday season as consumers turn to other purchases, according to a forecast by Mastercard SpendingPulse.
Revenue for the category will drop 0.3% year on year between November 1 and December 24, Mastercard projected Tuesday. Out of five spending categories, jewelry was the only one for which the company predicted a sales decline.
“While the consumer of holidays past may have been a consumer trying to find footing in a rapidly shifting economy, the consumer of holidays present has taken their power back,” said Michelle Meyer, US chief economist for the Mastercard Economics Institute. “We expect these individuals to impressively navigate the holiday season, making choices and trade-offs that best suit their lifestyles.”
Spending for the two months will also be affected by an unfavorable comparison with the same period a year ago, when inflation caused a sharp rise in prices, consumers had excess savings, and there was a healthy amount of pent-up demand, Mastercard noted.
Overall retail spending will rise 3.7% year on year, with e-commerce climbing 7% and in-store purchasing up 2.9%. Electronics is expected to see the highest growth, gaining 6% amid a return to school and an upgrade to home offices as people begin to revamp digital workspaces, Mastercard explained. Apparel will progress 1%, while restaurant spending will grow 5%, according to the estimates.
“With numerous choices and tightening budgets, you can anticipate shoppers to be increasingly selective and value focused,” noted Steve Sadove, senior adviser for Mastercard. “We expect the most effective holiday strategy will be to meet consumers where they are — personalized promotions to in-store experiences will be key in doing so.”
Image: A woman holding a jewelry box. (Shutterstock)