Sales Strategy

Jewelers Respond to Growing Consumer Calls for Guidance Amid Budget Constraints April 04, 2024 (0 comments)

New York, NY--Faced with budget constraints, shoppers increasingly seek advice from jewelers on allocating their budgets for luxury items, especially diamonds.

[Representative image via howtogoto/istock.com]

According to an article in Pymnts, Signet Jewelers, the parent company of Kay, Zales, and Jared, has observed a significant uptick in customers requesting guidance from their jewelry experts.

According to CEO Virginia Drosos, this trend reflects a shift toward prioritizing budget considerations over mere value for money, especially when choosing between natural and lab-grown diamonds.

The economic environment has led to a noticeable decrease in consumer spending on luxury items, as evidenced by Signet's report of a 6.3% drop in total sales and a 9.6% decline in same-store sales. The article cites a broader study titled “New Reality Check: The Paycheck-to-Paycheck Report,” highlighting that 60% of Americans are reducing their spending on non-essential items. 

However, despite these cutbacks, there is a persistent interest in value-driven purchases during key gifting seasons.

Interestingly, even high earners are not immune to financial pressures, with a significant number acknowledging that non-essential spending contributes to their financial strain. Yet, the popularity of luxury jewelry, particularly diamonds, remains strong.

For many, these purchases represent significant long-term investments, often facilitated by flexible payment plans such as Buy Now, Pay Later (BNPL) schemes.

These plans are becoming increasingly popular for clothing and accessories, showing consumers keen to acquire desired luxury items even with tighter budgets.

Learn more in the article on Pymnts.