Despite economic uncertainties, American consumers showed their resilience in 2024, driving retail sales growth.
According to the National Retail Federation, retail contributed a staggering $5.28 trillion to the U.S. economy, a nearly 4 percent year-over-year increase that matches the average growth rate observed between 2010 and 2019.
This positive trend provides a strong tailwind for retailers heading into 2025, and independent jewelry retailers in particular have reason to be optimistic.
While data from the Edge Retail Academy shows that overall unit sales dipped slightly (2 percent) in 2024, gross sales surged, increasing 4 percent compared with 2023.
This success can be attributed, in part, to a 7 percent jump in the average retail sale, indicating customers are willing to spend more on quality pieces, particularly when it comes to diamonds.
Diamonds Are Still a Girl’s (and a Jeweler’s) Best Friend
The diamond category, encompassing both natural and lab-grown diamonds, demonstrated robust performance in 2024.
Key performance indicators across the board were positive.
• Gross sales: Up 2 percent
• Units sold: Up 2 percent
• Gross margin: Up 2 percent
• Average retail sale: Up 1 percent
While loose diamonds command the largest share (23 percent) of the diamond market, it was diamond bracelets that truly captured consumer attention with a striking 13 percent increase in both gross sales and units sold.
Diamond necklaces followed, with a 12 percent rise in gross sales and a 3 percent increase in units sold.
“To prevent a decline in average ticket prices, retailers must showcase the unique value propositions of both natural and lab-grown diamonds. This involves educating customers about the distinct characteristics of each.” — Sherry Smith
However, a closer look reveals a more nuanced picture within the diamond category.
• Natural diamonds: While natural diamond necklaces saw an uptick in gross sales, other categories experienced declines, leading to an overall 4 percent drop in gross sales for natural diamonds.
However, a 2 percent increase in average retail sale could indicate that customers are showing a preference for higher-priced natural diamond pieces, perhaps seeking larger stones or better quality.
• Lab-grown diamonds: Lab-grown diamonds continued their ascent in 2024, with every category except loose diamonds experiencing significant growth in gross sales (ranging from 21-57 percent) and units sold (29-62 percent).
However, the decline in average retail sale continues.
Interestingly, while lab-grown loose diamonds account for less than a quarter (23 percent) of total loose diamond sales value, they represent nearly half (47 percent) of unit sales.
This disparity between value and unit sales highlights a key dynamic in the evolving diamond market—customers are increasingly drawn to the larger carat weights and lower price points that lab-grown diamonds offer.
To prevent a decline in average ticket prices, retailers must showcase the unique value propositions of both natural and lab-grown diamonds. This involves educating customers about the distinct characteristics of each.
By effectively guiding customers through their choices, retailers can cater to a wider range of preferences and maintain healthy sales figures across both diamond categories.
Other Categories
The positive momentum extended beyond diamonds.
• Colored gemstones: Gross sales increased by 4 percent, driven by a 5 percent rise in average retail sale.
• Pearls: Despite a 9 percent decline in units sold, pearls enjoyed a 3 percent increase in gross sales, thanks to a significant 13 percent jump in average retail sale.
• Precious metals: There was 8 percent growth in gross sales for precious metals jewelry, with a 12 percent surge in average retail sale offsetting a 4 percent decline in units sold.
• Sterling silver and alternative metals: The category’s 3 percent growth in gross sales was due to the 6 percent increase in average retail sale offsetting the 3 percent decline in units sold.
• Watches: This category continued its steady growth with an 8 percent increase in gross sales.
• Services: Jewelry repair and other services saw healthy growth, with gross sales climbing 7 percent.
On a region-by-region basis, jewelers’ performance showed notable differences.
The Northeast led the pack with gains across all key performance indicators, including a robust 7 percent growth in gross sales, a modest 1 percent increase in units sold, and a 6 percent increase in average retail sale.
The South and Southeast also demonstrated a strong performance with 4 percent growth in gross sales.
In contrast, the West and Midwest experienced the largest declines in units sold, though they still managed to achieve modest sales growth of 1 percent and 3 percent, respectively.
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According to the National Retail Federation, retail contributed a staggering $5.28 trillion to the U.S. economy, a nearly 4 percent year-over-year increase that matches the average growth rate observed between 2010 and 2019.
This positive trend provides a strong tailwind for retailers heading into 2025, and independent jewelry retailers in particular have reason to be optimistic.
While data from the Edge Retail Academy shows that overall unit sales dipped slightly (2 percent) in 2024, gross sales surged, increasing 4 percent compared with 2023.
This success can be attributed, in part, to a 7 percent jump in the average retail sale, indicating customers are willing to spend more on quality pieces, particularly when it comes to diamonds.
Diamonds Are Still a Girl’s (and a Jeweler’s) Best Friend
The diamond category, encompassing both natural and lab-grown diamonds, demonstrated robust performance in 2024.
Key performance indicators across the board were positive.
• Gross sales: Up 2 percent
• Units sold: Up 2 percent
• Gross margin: Up 2 percent
• Average retail sale: Up 1 percent
While loose diamonds command the largest share (23 percent) of the diamond market, it was diamond bracelets that truly captured consumer attention with a striking 13 percent increase in both gross sales and units sold.
Diamond necklaces followed, with a 12 percent rise in gross sales and a 3 percent increase in units sold.
“To prevent a decline in average ticket prices, retailers must showcase the unique value propositions of both natural and lab-grown diamonds. This involves educating customers about the distinct characteristics of each.” — Sherry Smith
However, a closer look reveals a more nuanced picture within the diamond category.
• Natural diamonds: While natural diamond necklaces saw an uptick in gross sales, other categories experienced declines, leading to an overall 4 percent drop in gross sales for natural diamonds.
However, a 2 percent increase in average retail sale could indicate that customers are showing a preference for higher-priced natural diamond pieces, perhaps seeking larger stones or better quality.
• Lab-grown diamonds: Lab-grown diamonds continued their ascent in 2024, with every category except loose diamonds experiencing significant growth in gross sales (ranging from 21-57 percent) and units sold (29-62 percent).
However, the decline in average retail sale continues.
Interestingly, while lab-grown loose diamonds account for less than a quarter (23 percent) of total loose diamond sales value, they represent nearly half (47 percent) of unit sales.
This disparity between value and unit sales highlights a key dynamic in the evolving diamond market—customers are increasingly drawn to the larger carat weights and lower price points that lab-grown diamonds offer.
To prevent a decline in average ticket prices, retailers must showcase the unique value propositions of both natural and lab-grown diamonds. This involves educating customers about the distinct characteristics of each.
By effectively guiding customers through their choices, retailers can cater to a wider range of preferences and maintain healthy sales figures across both diamond categories.
Other Categories
The positive momentum extended beyond diamonds.
• Colored gemstones: Gross sales increased by 4 percent, driven by a 5 percent rise in average retail sale.
• Pearls: Despite a 9 percent decline in units sold, pearls enjoyed a 3 percent increase in gross sales, thanks to a significant 13 percent jump in average retail sale.
• Precious metals: There was 8 percent growth in gross sales for precious metals jewelry, with a 12 percent surge in average retail sale offsetting a 4 percent decline in units sold.
• Sterling silver and alternative metals: The category’s 3 percent growth in gross sales was due to the 6 percent increase in average retail sale offsetting the 3 percent decline in units sold.
• Watches: This category continued its steady growth with an 8 percent increase in gross sales.
• Services: Jewelry repair and other services saw healthy growth, with gross sales climbing 7 percent.
On a region-by-region basis, jewelers’ performance showed notable differences.
The Northeast led the pack with gains across all key performance indicators, including a robust 7 percent growth in gross sales, a modest 1 percent increase in units sold, and a 6 percent increase in average retail sale.
The South and Southeast also demonstrated a strong performance with 4 percent growth in gross sales.
In contrast, the West and Midwest experienced the largest declines in units sold, though they still managed to achieve modest sales growth of 1 percent and 3 percent, respectively.
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