Sales Strategy
Get Ready! Spending Data Says Jewelers Should Enjoy Another Huge Holiday Season Starting In October September 22, 2021 (0 comments)
New York, NY—Following a surprise blockbuster holiday in 2020, jewelers are again poised to enjoy a stellar holiday season in 2021, predicts data from Mastercard SpendingPulse™. But to reap the fullest sales growth, jewelers should kick off their holiday-season sales plans by October 11, says the company.
Across the board, consumers and brands alike are gearing up for what’s anticipated to be the most wonderful holiday retail season on record, says SpendingPulse, which measures overall retail sales across all payment types, including cash and check. The organization predicts total U.S. retail sales are anticipated to grow 7.4% for the holiday, excluding automotive and gas. Consumers are expected to spend online at even higher rates (+7.6%) than last year, while in-store sales are also expected to see a rebound, growing 6.6% compared to 2020.
SpendingPulse is especially bullish on luxury retail in general, and jewelry in particular.
“‘Tis the season for splurging: Fueled in part by pent-up savings and government stimulus, consumers have the desire and the means to spend. Over the last six months, the Luxury retail and Jewelry sectors have been experiencing some of the strongest YOY and YO2Y growth; that is anticipated to continue through the holidays,” the company said in a statement.
To wit, jewelry sales in August leapt a stunning 73% over August 2020, and an equally impressive 58.9% over August 2019. Excluding jewelry, which is counted as its own category, luxury sales in August nearly doubled over last year (+92.8%) and rose 37.3% over August 2019 figures—healthy growth in any year-on-year comparison.
Related: 2020 Holiday Season Totals Astound Jewelers
For the traditional holiday season of November and December, SpendingPulse predicts 2021 jewelry sales will rise 59% over the same period last year, and 52.9% over 2019. But SpendingPulse advises retailers expand their holiday selling efforts to a 75-day season that begins October 11 through December 24. Over that timeframe, jewelry sales are expected to grow 60% over last year and 54.7% over 2019. Total retail sales for the “75 Days of Christmas” are anticipated to grow 6.8%, excluding automotive and gas, and e-commerce sales are anticipated to grow by 7.5% compared to the same period last year.
With potential supply chain and labor supply issues impacting the season, retailers are expected to offer omnichannel promotions early on, particularly in the heavily gifted Electronics, Apparel and Department Store sectors, says SpendingPulse. Likewise, consumers are being advised to shop early this year to ensure they get the items they want. SpendingPulse says that while shoppers are likely to return to stores, the shift to e-commerce is here to stay, and technologies like contactless and BOPIS (buy online, pick up in store) will continue to be embraced by consumers and retailers who desire a quick and seamless experience.
“This holiday season will be defined by early shopping, bigger price tags and digital experiences. Over the past two years, retailers have learned a lot about what shoppers want and need, bringing us into an exciting new age of retail resilience,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Inc. “Retailers have been preparing for this moment and will find innovative ways to deliver on what’s bound to be the biggest holiday shopping season yet.”
The holiday season will be a fitting end to a year marked by strong retail performance. In August, for instance, U.S. retail sales excluding automotive and gasoline increased 8.1% year-over-year, and 7.7% compared to August 2019. Online sales in August grew 8.1% and 82% respectively, compared to the same periods. This momentum was particularly evident in key gifting categories, which have experienced strong year-over-year growth, including: Apparel (+75.2%), Electronics (+12.4%) and Department Stores (+28.7%).
View the full August SpendingPulse figures here.