Surveys

5 Predictions for Jewelry Retail in the Second Half of 2022

SurveysMay 19, 2022

5 Predictions for Jewelry Retail in the Second Half of 2022

From a slowdown in sales growth to rising costs, Fruchtman Marketing outlines its expectations for the second half of the year.

20220519_Gismondi earrings.jpg
A pair of 18-karat rose gold earrings set with white, fancy yellow, and fancy brown diamonds from Gismondi 1754’s “Clip” collection. Jewelry marketing company Fruchtman Marketing recently released its “State of Jewelry Retail” report, giving its predictions for the year ahead.
New York—Jewelry retailers have seen spectacular sales growth the past two years, but there’s mounting evidence that a slowdown is on the way.

In its latest “State of Jewelry Retail” report, Fruchtman Marketing outlines its expectations for the second half of the year.

“With all the turmoil in the news, including rising interest rates, inflation and the state of the market, there are a lot of unknowns as retailers move forward in 2022,” said the report.

Here are five key takeaways.

Sales growth is expected to slow.

Industry analyst Edahn Golan dubbed last year the “year of jewelry,” and for good reason.

Full-year sales in the watches and jewelry category reached an estimated $115.29 billion, a 51 percent increase year-over-year, according to preliminary data from the U.S. Bureau of Economic Analysis.

Jewelry sales in 2022 are expected to grow, but not nearly as aggressively as last year.

This year, as of March, full-year watch and jewelry sales are expected to reach an estimated $125.53 billion, about a 9 percent year-over-year increase.

Fruchtman predicts year-over-year growth of between 4 and 8 percent.

“We think it will be tough to hit double-digits over last year, which saw double-digit increases the year before,” the report noted.

Two major jewelry retailers, Pandora and Brilliant Earth, both also recently predicted a slowdown ahead.

Travel may not be as strong of a competitor as originally thought.

Travel tends to be jewelry’s biggest competitor in the fight for consumer discretionary dollars, and travel being restricted because of COVID-19 has worked to jewelers’ advantage.

An easing of travel restrictions coupled with the pent-up demand for vacations is a cause for concern for jewelers, but rising travel costs may soften the impact this year.

“One only has to look at what the cost of a roundtrip fare was pre-pandemic [compared] to now,” said the report.

The cost of airfare rose 19 percent from March to April, according to data from the Bureau of Labor Statistics, marking the highest-ever monthly increase since the agency began compiling that data.

Year-over-year, the cost of airfare has climbed 33 percent.

Inflation is taking a toll on shoppers.

The cost of airfare is rising, and so is the cost of nearly everything else.

The consumer price index, which measures the average change in prices over time consumers will pay for a basket of goods and services, rose 0.3 percent month-over-month in April.

It was up 8.3 percent year-over-year, nearing the highest level seen since the summer of 1982.

Prices are rising at the gas pump and in the grocery aisles, while housing costs are also going up.

“This will affect nearly every consumer. If you are a lower to a moderately priced retailer, it will most likely affect you more,” said the report.

“If your customer is more ‘middle class’, they’re getting squeezed the most.”

For wealthier customers, how the stock market is performing and other factors will impact their buying decisions, the report noted.

 Related stories will be right here … 

Engagement ring shoppers may prioritize value.

Consumers are also contending with rising mortgage interest rates and rent prices, noted the report.

With the cost of living rising ever higher, many young adults live at home with their families longer and when it’s time to pop the question, they might have less to spend on an engagement ring.

“This can go either way on the engagement ring front. They may spend more money on the ring if they are no longer in the market for a home. Or they may need to have more money to put down on that home, reducing their spending or looking to [natural diamond] alternatives such as lab-grown, less expensive colored gemstones, or repurposing an heirloom.”

The average age of an engagement ring purchaser is 32, said the report, with many people in this demographic saving up longer for larger purchases.

“This age group will be hyper-focused on ‘value’. You may see carat size go down. Or you may see less importance on quality in cut and color sacrificed to purchase that larger diamond. You also may see more inquiries about lab-grown diamonds,” said the report.

Rising gas prices may impact foot traffic.

U.S. retail gas and diesel prices hit a record high last week with energy costs up 30 percent year-over-year in April.

“Foot traffic might decline,” said the report. “On the other hand, if that customer is making the effort to come to your store, your closing ratios should be higher.”

Though foot traffic may take a hit, online shopping is expected to increase, so jewelers should fine-tune their websites now, if they haven’t already.

“Getting your website in tip-top shape will be critical in 2022. If you actually sell online, you should see an increase this year,” said the report. 

“If you don’t, there’s no better time than now to seriously make this change.”

Lenore Fedowis the senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.
tags:

The Latest

National Jeweler columnist Peter Smith
ColumnistsJan 21, 2025
Peter Smith: Sales Training’s Dirty Little Secret

Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.

Lord Jewelry brown and white diamond ring
TrendsJan 21, 2025
Amanda’s Style File: Decadent Mocha Mousse

Pantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.

Charms from designer Jenna Blake
Policies & IssuesJan 21, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief

From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.

Resolutions - 2025.jpg
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers

The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.

Diamonds Do Good
SourcingJan 21, 2025
Diamonds Do Good Adds 2 Board Members

Julia Hackman Chafé and Monica Elias have joined the organization’s board of directors.

Weekly QuizJan 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Bucellati necklaces
FinancialsJan 17, 2025
Richemont’s Jewelry Sales Rise 14% in Holiday Quarter

The company, which owns Cartier and Van Cleef & Arpels, had a record Q3, with sales topping $6 billion.

Picchiotti Classic Blue and Green Necklace
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ Necklace

The necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.

ride_or_die_1872x1052.png
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday Campaign

A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’

Jameel Mohammed
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer Award

Jameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.

Gold jewelry boxes with Lux Bond & Green logo
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth Location

The 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.

Timex National Park Collection
WatchesJan 16, 2025
Timex Launches Collection of National Park Watches

The watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.

Elizabeth Taylor diamond line bracelet
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction

Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.

JCK open registration graphic
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for Registration

The jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.

Iris Apfel
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel Auction

Associate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.

Macy’s Herald Square New York City store
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround Strategy

The closures are part of the retailer’s plan to close 150 locations over a three-year period.

Jewelers Vigilance Committee Americans with Disabilities Act guide cover
Policies & IssuesJan 15, 2025
JVC Debuts Guide to Americans with Disabilities Act Compliance

The online guide is available for free and written with the jewelry industry in mind.

Jose Hess Design Award Trophy
Events & AwardsJan 15, 2025
Jose Hess Design Awards Open for Submissions

The awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.

Susan Jacques
GradingJan 14, 2025
GIA CEO, President Susan Jacques to Retire at the End of 2025

The grading lab said the search for her successor is underway.

Jewelry designer and National Jeweler guest columnist Jules Kim
ColumnistsJan 14, 2025
Jules Kim: Building Bridges Between Creators and Industry

In this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.

Henry A. Hänni
GradingJan 14, 2025
Former SSEF Director Henry A. Hänni Dies

A pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.

Woman wearing rings on both hands
FinancialsJan 14, 2025
Signet Jewelers Lowers Q4 Guidance After Holiday Sales Fall Short

The peak selling days leading up to Christmas did not meet the jewelry retailer’s expectations.

Edouard Schneider
MajorsJan 14, 2025
Edouard Schneider Joins Messika as Chief Brand Officer

Schneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.

Gemfields emeralds
SourcingJan 13, 2025
Zambia Reinstates 15% Export Duty on Precious Gemstones, Shocking Gemfields

Gemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.

Woman’s silhouette with smart ring on finger
TechnologyJan 13, 2025
Ultrahuman Unveils Luxury Smart Ring

With versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.

Brandee Dallow
Policies & IssuesJan 13, 2025
Brandee Dallow Elected President of Ethical Metalsmiths

The executive brings more than two decades of industry experience to the role.

Camille Zarsky and curated necklaces
IndependentsJan 13, 2025
The Seven Pops Up in Palm Beach

The New York City-based retailer is bringing its curation of jewels to a pop-up shop at Love Binetti in Palm Beach, Florida.

Jewelers Relief Fund logo
Policies & IssuesJan 10, 2025
Jewelers Relief Fund Reopened to Aid Victims of LA Fires

Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy