SurveysMay 10, 2022
US Jewelry, Watch Sales Slowed in MarchSurveysMay 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.
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 …
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.
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.”
Editors' Picks
Sponsored by
More on Surveys
The Latest
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 YearsThe independent jeweler first opened its doors in 1888.
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in FloridaThe debut event will take place in Miami’s Coconut Grove neighborhood this fall.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor ShortageThe roundtable will take place May 17 ahead of the trade show’s welcome dinner.
Weekly QuizMar 27, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry CollectionThe “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.
Brought to you by
Natural Diamonds Should Mean MoreNatural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.
TrendsMar 31, 2025
Amanda’s Style File: Dripping in DiamondsDiamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With AcquisitionThe Utah-based company known for making wedding bands has acquired Doubloon Golf.
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH WatchesThe longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry StoreAuthorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.
SourcingMar 28, 2025
19th-Century Jade Book Now Available in EnglishLotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ RingThe ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand AmbassadorThe Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent JewelerThe family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco WatchesThe “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.
MajorsMar 26, 2025
QVC Group Appoints New PresidentAlex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat RubyThe ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft RecoveredThe two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More JewelryThe time to start experimenting with video content is now, writes columnist Emmanuel Raheb.
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic DesignFrom striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid TurnaroundThe jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair ServicesThe auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.
