(IDEX Online) – While consumer demand for jewelry in the U.S. market remains solid, specialty jewelers are losing market share rapidly.

 

For the second consecutive month, specialty jewelry stores – mostly independents and a few small chains – have posted a decline in sales. Worse, specialty jewelers’ sales last July were very weak, so sales comparisons this year should have been easy. Instead, they dug a deeper hole – their market share decline accelerated in July 2016.

 

Total sales of fine jewelry and fine watches in the U.S. market rose by 4.1 percent in July 2016 when compared to July 2015, according to preliminary estimates from the U.S. Department of Commerce. This gain was about in line with the solid gains in the past few months.  

 

By category, fine jewelry sales were up about 4.0 percent in July, and fine watch sales rose by 4.1 percent. Watch sales have been outpacing jewelry sales for a number of months, but demand for watches has slowed somewhat, according to both the government survey and our panel of jewelers.

 

July is not an important month for jewelers. The summer doldrums set in during July, and shoppers simply don’t think about jewelry until November, the beginning of the holiday selling season.

 

Preliminary July sales gains for specialty jewelers show that they are continuing to lose significant market share to other merchants – mostly multi-line retailers – who sell jewelry. Specialty jewelers, who generate a majority of their business from jewelry sales, posted a decline in sales of 2.2 percent, the second consecutive monthly decline. This is a significant deceleration of sales trends from prior months this year by specialty jewelers.

 

Other retailers who sell jewelry – mostly multi-line merchants such as Wal-Mart, J.C. Penney, and others – posted a very strong 8.4 percent gain in sales during July.

 

Our outlook calls for more moderate sales increases – perhaps in the three percent range – over the next few months, primarily because comparisons are much more difficult against solid growth in the second half of last year. Further, as the number of specialty jewelers decline, their aggregate sales levels will continue to diminish or show only modest monthly gains.

 

Total Jewelry Sales Up 4.1 Percent in July

Total sales, based on preliminary data, of fine jewelry and fine watches in the U.S. market in July 2016 were just under $5.7 billion, according to the Department of Commerce.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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