A surge in online jewellery demand lifted overall retail sales in December, offering the gloom-ridden industry one big silver lining. With gold and silver on the rise, online jewellers had a great month, and saw increased inquiry and sales for their precious metal products. During periods of economic turmoil, investors tend to consider these types of metals as more stable investments. Consequently, demand radically increases as consumers try to find stability amid highly volatile markets.
For instance, gold and silver sales went through the roof in December. Online jewellers recently noted a burgeoning consumer demand for these rare, expensive commodities. The retail environment remained challenging. Sales by non-food retailers, such as department and clothing stores, fell, experiencing the largest decline of all sectors at negative 0.9%. The Office for National Statistics (ONS) recorded a 0.3% decline in retail sales volumes in the three months leading up to Christmas. This year-over-year decline speaks to the continuing headwinds that the market is still developing.
Even with the increased cost of living and inflation in expenses since the last budget, e-commerce for small jewellery shops boomed. Jewellers were big winners this festive season. While many of their old US retail competitors had trouble drawing customer foot traffic, they had a great holiday. This juxtaposition serves to underscore the broader, permanent consumer shift toward e-comm that we’ve all experienced, particularly in the high-end luxury vertical.
It’s possible that the geopolitical climate further incentivized this demand for gold and silver. This trend was greatly increased by the threats made by US President Donald Trump to impose new tariffs on European countries. Consumers often flock to heaven metals during times of uncertainty.
“Among online retailers, jewellers enjoyed a particularly golden Christmas. In uncertain times shoppers seem to be being drawn to dual purpose jewels that not only tick the Christmas present box, but provide a convenient long-term store of value as well.” – Nicholas Hyett
Online jewellery sales produced a modest 0.4% monthly rise in overall UK retail sales figures, showcasing their resilience amid a difficult festive period for many retailers. Consumption, spurred by food discounts and preparations for the yearend and Christmas holidays, lifted sales in 14 out of 15 areas. This wasn’t enough to propel strong overall growth.
“But while food, discounts and holiday preparations pushed up sales, it wasn’t enough to drive significant growth,” – Alice Cowley
The retail sector is experiencing a varied and disparate recovery. Our nation’s small businesses are still reeling from the effects of the COVID-19 pandemic. Retail sales are still below 2019 pre-pandemic levels with a lot of industry stakeholders still worried about the ongoing potential to rebound.
This idea gives context to what non-food retailers are working against both to get their own mojo back, as the internet eats their lunch.
“We remain a long way from consumers feeling that better days are around the corner.”
This sentiment underscores the challenges that non-food retailers face in regaining momentum while online platforms continue to gain ground.