Jeweller - May 2024
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News<br />
Proceed with caution: Latest insights<br />
after analysis of Aussie jewellery sales<br />
The latest analysis of the Australian jewellery market by Retail Edge Consultants<br />
has unearthed some intriguing trends.<br />
Analysis of data collected from more than 400 independent retailers revealed<br />
that sales in March declined by 5 per cent on a year-on-year comparison and 7<br />
per cent on a two-year comparison.<br />
Retail Edge general manager Leon Van Megen said that measuring against<br />
any month in 2022 and early 2023 is a comparison with what’s known as the<br />
‘COVID-19 bubble’.<br />
“As we work our way into more directly comparable periods, we should start to<br />
see sales come broadly in line with the most recent non-COVID time period,” he<br />
explained.<br />
These insights followed established trends in the sales analysis from February,<br />
which documented a 4.3 per cent decline.<br />
In a positive outcome, the average sale was $257, a 7 per cent improvement<br />
compared with the past year ($241). Unit sales for the month decreased by 10<br />
per cent, marking a third consecutive year of decline in March.<br />
Among the specific categories, diamond jewellery recorded a 12 per cent decline<br />
on a year-on-year comparison and a 28 per cent decrease compared with 2022.<br />
“This major decline in the largest category continues to impact total business<br />
performance. Managing diamond stock remains critical to managing your total<br />
inventory, which continues to be the single biggest driver of the accumulation of<br />
aged stock,” Van Megen added.<br />
“Managing aged stock with a careful plan will help jewellers avoid a cashflow<br />
squeeze. It’s about buying strategically and selling well.”<br />
Silver and alternative metal jewellery improved by 1.1 per cent year-on-year,<br />
while colour gemstone jewellery was close to neutral, with a 0.4 per cent<br />
decrease by the same comparison.<br />
Precious metal jewellery without a gemstone or diamond declined by 0.9 per<br />
cent on a one-year comparison and 19 per cent when compared with 2022.<br />
The pattern in laybys was highlighted by a 5.8 per cent increase in dollar terms<br />
between new orders and pickups or cancellations. Services, including repairs,<br />
decreased by 37 per cent.<br />
There was also a 7.5 per cent increase for special orders in dollar terms<br />
between new orders and pickups or cancellations.