Mastercard Makes Its 2023 Holiday Prediction
According to SpendingPulse, retail sales will increase in November and December but not necessarily for jewelers.
Mastercard released its outlook for the 2023 holiday season last week and, like Bain & Company and Deloitte, it expects retail sales to grow, but not by much.
According to Mastercard SpendingPulse, U.S. retail sales (excluding automobiles) will increase about 4 percent year-over-year during the holiday season, defined as Nov. 1-Dec. 24.
SpendingPulse measures both online and in-store retail stores across all forms of payments (not just Mastercard purchases). It is not adjusted for inflation.
Consumer spending is expected to rise across all but one of the five categories SpendingPulse tracks—jewelry.
Jewelry sales are expected to decline 0.3 percent year-over-year amid what the company described as a “rebalancing” in consumer spending.
In 2022, there was pent-up demand. Consumers had excess savings and wages were rising while inflationary pricing aided retailers.
This year, Mastercard expects spending to normalize in line with macroeconomic trends. Demand is leveling off and consumers are finding themselves with less of a financial cushion as inflation continues to cut into their savings.
The fine jewelry industry already has begun to witness the slowdown after two years of sky-high sales.
The industry’s largest retailer, Signet Jewelers, had a rough second quarter due in part to a decline in the number of engagements while De Beers Group is spending $20 million to ensure consumers stay interested in diamonds, natural diamonds specifically.
“This holiday season, retailers will be vying for consumer dollars. With numerous choices and tightening budgets, you can anticipate shoppers to be increasingly selective and value-focused,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Inc.
“We expect the most effective holiday strategy will be to meet consumers where they are— personalized promotions to in-store experiences will be key in doing so.”
The two categories Mastercard SpendingPulse predicts will post the largest increases in spending this holiday season are electronics (up 6 percent year-over-year) and restaurants (up 5 percent year-over-year).
Mastercard said electronics, gadgets and gaming are expected to be popular among consumers this year, as artificial intelligence, immersive experiences, and digital workspaces continue to the change the way people work and play.
In addition, consumers who purchased new electronics at the onset of the pandemic may be looking to upgrade this year.
As for restaurant spending, the company said consumers are keen on gathering with loved ones for shared meals and festivities outside of the home after a few years of being isolated.
When it comes to where consumers will be shopping this holiday season, Mastercard said this season’s shopper is looking to “make purchases anytime, anywhere.”
It predicts in-store sales will increase 3 percent year-over-year while e-commerce sales are expected to grow 7 percent.
The Latest
The agreement will allocate an increasing proportion of the country’s rough diamonds to the government of Botswana over the next decade.
“Cosmic Splendor: Jewelry From the Collections of Van Cleef & Arpels,” opens April 11 at the American Museum of Natural History.
From Lady Gaga’s 1930s Tiffany & Co. necklace to Taylor Swift’s “T,” Michelle Graff recaps the night’s most memorable jewelry looks.
Colored stones are stepping into a jewelry spotlight typically reserved for diamonds—are you ready to sell color?
Layoffs will reportedly start next month as HSN plans to move into QVC’s location in Pennsylvania.
A group of creatives talked to Associate Editor Lauren McLemore about their approach to the annual Tucson gem, mineral, and fossil shows.
The auction also featured the sale of a Cartier necklace made when Egyptomania was sweeping Great Britain.
The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
The “Blossom Rosette” blooms with love, beauty, and hope for the year ahead.
Rovinsky is remembered as a great mentor who made the employees of his stores feel like family.
For every jeweler who tries their luck, the company will make a donation to Jewelers for Children.
The boards of at least five chapters have resigned in response to controversial statements the WJA national board president made last month.
An experienced jewelry writer and curator, Grant led the organization for two years.
Five new designs were added, all donning Tahitian cultured pearls and spear-like trident motifs, along with the new “Titan” setting.
The inaugural event is being co-hosted by the American Gem Society and the Gemological Institute of America.
Jewelers of America’s Annie Doresca and AGTA CEO John W. Ford Sr. are among the new members.
The jeweler’s latest high jewelry collection looks into the Boucheron archives to create a “living encyclopedia of high jewelry.”
Watch and jewelry sales slipped 3 percent in 2024, though the luxury conglomerate did see business pick up in the fourth quarter.
Olivier Kessler-Gay will take over the role on March 3.
The jewelry designer and master metalsmith will present on the ancient Japanese metalworking technique at the Atlanta Jewelry Show in March.
The “Moments” social media campaign emphasizes the emotional ties between natural diamonds and life’s special milestones.
The versatile “As We Are” collection features 14 pieces with interlocking designs allowing for 27 different looks worn around the body.
Letsile Tebogo will help to promote natural diamonds and the good they have done for his country.
The showcase, in its second year, will feature more than 20 international brands at its curated event from Feb. 2-4.
“My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
The seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.