US Watch and Jewelry Sales in June: Biggest Monthly Increase for Two Years
August 05, 24
(IDEX Online) - Watch and jewelry sales in the US picked up significantly in June, with their biggest single monthly increase in two years.
The year-on-year increase was 6.2 per cent, according to the latest figures published by the US Department of Commerce. The last time we saw such an increase was in July 2022 (also 6.25 per cent).
The trend for the last three months has been of continued growth, but at a slower rate (March 4.5 per cent; April 3.7 per cent; May 3.3 per cent). The rise in sales follows a year or so of almost relentless decline (October 2022 to October 2023).
Revisions to figures for April and May by the Bureau of Economic Analysis (BEA) at the US Department of Commerce show sales were higher than initially reported. The year-on-year increase for April was 3.7 per cent (revised up from 2.7 per cent based on actual transactions rather than estimates) and for May it was 3.3 per cent (revised up from 1.4 per cent).
Much of the recovery is being driven by Amazon, Costco, Walmart and other multi-line retailers, which jointly account for around two thirds of all watch and jewelry sales in the US.
The Department of Commerce no longer provides a breakdown for the remaining third - specialty jewelers - so we are now using Signet, the largest specialty jewelry group in the US, as a benchmark.
Data from Q1 2023 onwards shows its sales are increasing, but at a slower rate than the overall US increase.
Signet, which has 2,700 stores and includes the Kay, Zales, Jared and Blue Nile brands, is expected to release its next trading update in mid-September.
The multi-line share of the market is expected to increase as the specialty jewelry sector carries on shrinking. The Jewelers Board of Trade (JBT) recently reported an overall loss of 647 retailers in the US in Q2 of this year. That's a drop of 3.6 per cent, taking the total figure down to 17,260. It also said there had been falls in the numbers of wholesalers and manufacturers.
The graph below shows demand for jewelry recovering in the US. The overall trend is upwards, despite some falls.
Jewelry sales in the US rose by 6.1 per cent during June (compared to 3.3 per cent in May), according to revised Department of Commerce figures. Watch sales were up by 6.6 per cent, compared to 3.2 per cent in May. The overall increase for June was 6.2 per cent, compared to 3.3 per cent in May.
