By Joshua Freedman
“The US jewellery industry is on track to experience modest growth this holiday season as strong economic trends are likely to offset inflationary pressure, according to Mastercard SpendingPulse.
Jewellery sales will rise 2.2% year on year for the period from November 1 to December 24, the data provider predicted Monday. That would equate to a 33% increase compared to 2019, Mastercard forecast. Holiday sales across all retail sectors — excluding automotives — will advance 7% from last year and by 19% compared with 2019, it projected.
“This holiday season, consumers may find themselves looking for ways to navigate the inflationary environment — from searching for deals to making trade-offs that allow for extra room in their gift-giving budgets,” said Michelle Meyer, US chief economist for the Mastercard Economics Institute. “New job creation, rising wages and lingering savings should have many consumers ready and able to spend.”
The shopping season will be longer than usual, with consumers likely to hunt for discounts as early as October, the company said. Black Friday and other promotional events are likely to make a comeback after a slow 2021, while Christmas Eve — which occurs on a Saturday — is expected to be one of the busiest shopping days.
Mastercard foresees in-store experiences to be a strong feature of the season. It also expects a shift toward apparel and luxury items: A return to in-person social events after the Covid-19 lockdowns of previous years “have many dressing to impress,” it noted.
August jewellery retail sales rose 17.5% year on year and 87% versus the 2019 total as the market rebound continued, the data company reported. Sales across all categories climbed 12% year on year and jumped 20% compared with 2019.”