US Watch and Jewelry Sales: Biggest Fall Since Pandemic

(IDEX Online) - US watch and jewelry sales slumped during March, with the biggest monthly fall since the pandemic struck in 2020.

They were down 9.2 per cent according to figures release by the US Department of Commerce. In February the fall was 6.8 per cent (revised down from the 3.0 per cent figure).

Sales have been declining for the last six months, with the exception of January (revised up to 0.8 per cent).

Many fear the US is on the brink of a financial catastrophe, with the collapse of Silicon Valley Bank and Signature Bank, both in March, followed by this week's news that First Republic Bank had gone the same way.

The consumer price index was still rising - up five per cent in March, according to the U.S. Bureau of Labor Statistics, which is marginally slower than in recent months.

Meanwhile Signet, the US's largest jewelry retailer with around 2,800 stores, suffered a year-on-year decline of 9.2 per cent in comparable sales in the three months to the end of January and says an "engagement gap" is continuing to impact sales of bridal goods.

Growth in watch and jewelry sales has been slow - below six per cent for every month since May 2022 - but has always managed to stay just about positive.

Jewelry sales fell by 9.7 per cent and watch sales fell by 7.1 per cent during March, an average fall of 9.2 per cent. Revisions to figures for February show a worse performance than first reported. Jewelry sales fell by 7.2 per cent (rather than 3.4 per cent) and watch sales fell by 5.1 per cent (rather than 1.4 per cent).

Assessment

Financial uncertainty is likely to persist for the foreseeable future, impacting inflation and consumer spending. Prices of basic foodstuffs are soaring. Spending on watches, jewelry and other luxuries will suffer.