Jewelry Demand Weak in US Market

Fine jewelry and watch sales declined by nearly 2 percent in March to an estimated $5.2 billion in the US market, when compared to the same month a year ago, according to new data from the US Department of Commerce. This marks the sixth consecutive month of weak consumer demand in the US, the largest jewelry consuming market globally.

Specialty jewelers – merchants whose primary business is selling fine jewelry and watches – posted a sharp sales decline of 5.8 percent in March. Based on new data, specialty jewelers’ sales account for just under 40 percent of all jewelry revenues in the US market. Multi-line retailers, who sell more than 60 percent of all jewelry, had flattish sales during March in their jewelry departments.

Total Jewelry Sales Down in March

For the month of March, the US Department of Commerce reported that total sales of fine jewelry and fine watches fell by 1.7 percent when compared to March 2014. This represents the sixth consecutive month of weak consumer demand for jewelry. In part, shoppers are purchasing less expensive fashion jewelry, rather than jewelry with large gemstones. Further, research shows that younger shoppers are opting to spend money on “experiences” rather than “stuff.” Finally, older shoppers – mostly Baby Boomers – are not buying jewelry at the same rate as earlier generations at the same age.

The graph below illustrates monthly sales trends for sales of fine jewelry and fine watches since the beginning of 2014...

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