Despite the limited jewelry trade caused by the COVID-19 lockdowns in October, the industry experienced a strong “rebound” effect fueled by continued consumer demand and which resulted in positive sales performance over the holidays.
Retail stores that remained open in October rebounded strongly, particularly in Sydney from the middle of the month and Melbourne in the last two days of the month, even with the closures that pushed stores to close over the course of the month. the period.
The comparative average sale based on inventory alone showed a strong increase of 16% from October of last year and a solid increase of 26% based on a two-year difference from the same period in 2019.
“As you can see from the dollar sales chart, with a lot of NSW coming out of lockdown around the middle of the month, the gap between October 21 and October 20 narrowed quite quickly. Melbourne and its suburbs didn’t come out of lockdown until the very end of last week, so little time to greatly influence the month’s numbers, ”according to Dyer, it was the same pattern every time a locking and reopening occurs.
Compared to October of last year, overall sales fell 7% and comparative units sold also fell 18%, compared to the number of stores that remained open as the main factor, rather than a drop in the consumer demand.
Analyzing the figures by category, sales dollars for precious metal jewelry set with diamonds increased 1.9% from October 2020 and 18% from 2019.
“I think a factor in the weak growth of this category (set of diamonds) in October would have been the decline in custom fabrications that were in preparation and completed and collected,” Dyer said.
Selling dollars saw a 7% drop in precious metal jewelry set with colored stones from October last year and a 6% drop in 2019.
Precious metal jewelry (without gemstones) remained stable with an increase of 0.7% from October 2020, but saw an increase of 17% based on a two-year comparison.
Stops remained stable with 0% growth or decline in new purchases and pickups / cancellations.
“The trend in services was more pickups and / or cancellations than new inbound jobs, showing a net outflow of -14.7%. On the one hand, this means a positive increase in cash flow, but on the other hand, it also means that the work in the “pipeline” has also been exhausted and this will have a negative impact on the payments of this area to the over the coming period, ”Dyer says.
He also explained that this is due to fewer customer visits, which allowed staff to sell inventory items when collecting repairs.
A 21% increase was seen in special orders, which could be attributed to custom brands such as stock model orders and some could be “voids” in the existing stock lineup.
“You really have to take a close look at these special orders to see which of the above commands. You don’t want to depend on special stock orders as a major factor in achieving your Christmas goals, ”Dyer added.
RETAIL SALES DATA – OCTOBER 2021
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