The 2024 festive season presented a complex landscape for Australia’s jewellery retailers, marked by both challenges and opportunities. An analysis of retail performance during this period offers valuable insights into consumer behaviour and market dynamics, essential for industry stakeholders.
December Sales Performance
Data from Retail Edge Consultants indicates a slight decline in December sales for independent jewellery stores, with a 0.8% decrease compared to December 2023. Unit sales experienced a more pronounced drop of 9%, while the average retail sale value (inventory only) rose by 11% to $207.
This downturn followed a robust November, which saw an 8% increase in sales, suggesting that early promotional events like Black Friday may have shifted consumer spending patterns, leading to a tempered December performance.
Boxing Day and Post-Christmas Spending
Despite the December dip, the post-Christmas period showed promising activity. Australians were projected to spend a record $1.3 billion on Boxing Day, contributing to a total of $3.7 billion over the six days following Christmas—a 2.7% increase from the previous year.
This surge indicates sustained consumer enthusiasm for post-holiday sales, with categories like household goods, clothing, footwear, and accessories leading the spending. While specific data for jewellery was not detailed, the inclusion of accessories suggests that jewellery retailers likely benefited from this trend.
Market Trends and Consumer Preferences
The Australian jewellery market is projected to grow by 4.98% between 2025 and 2029, reaching an estimated value of US$4.47 billion by 2029.
Notably, there has been a shift in consumer preferences within the engagement ring segment. The average retail value of engagement rings featuring lab-grown diamonds decreased from $9,868 to $7,782 over the year ending March 2024, reflecting a growing demand for more affordable and sustainable options.
Implications for Jewellery Retailers
The mixed results of the 2024 festive season underscore the importance of strategic planning and adaptability for jewellery retailers. The early success in November suggests that aligning marketing efforts with major sales events can effectively capture consumer interest. However, the subsequent December decline highlights the need for sustained engagement strategies throughout the entire holiday period.
The post-Christmas spending surge offers an opportunity for retailers to clear inventory and attract value-seeking customers. Emphasising promotions on accessories and affordable luxury items during this time can capitalize on consumer spending habits.
As the Australian jewellery market continues to evolve, retailers should monitor emerging trends, such as the increasing preference for lab-grown diamonds and demi-fine jewellery. Staying attuned to consumer preferences and economic indicators will be crucial for navigating the dynamic retail landscape in the coming years.
