Stable Prices, Improvement in Consumer Spending Help Jewelry Store Sales

U.S. jewelry store sales were relatively stable in June and the rate of growth was helped by very little price inflation, Rapaport reported. Government figures estimated jewelry store sales at $2.2 billion in June, up 4 percent year-on-year on an unadjusted basis.  The sales increase was 1.3 percent on a seasonally  adjusted basis. Growth rates and price inflation were on par with figures from May.
In review of jewelry store sales growth this year, the 8 percent consumer price index (CPI) for jewelry wiped out January's sales increase, but strong sales in February proved positive for retail jewelers even with a high rate of inflation. Revenue in March was relatively flat given the high CPI, and in April jewelry store sales contracted but so did inflation. For the first six months of 2012, jewelry store sales on an unadjusted basis have risen 4.8 percent to $13.4 billion, while the CPI averaged about 4 percent.
Meanwhile, U.S. department store sales fell 3.3 percent year on year in June to $14.8 billion and in July they dropped 3.5 percent to  $13.5 billion. Unity Marketing has warned retailers, especially those in the luxury goods business, to prepare for a tough second half as affluent consumers have reduced their spending 27 percent this year and there are no signs that wealthy shoppers intend to open their wallets more than necessary in the coming months.