SurveysSep 20, 2023
Why Bain and Deloitte Think Sales Will Grow This Holiday SeasonSurveysSep 26, 2023
Mastercard Makes Its 2023 Holiday Prediction
According to SpendingPulse, retail sales will increase in November and December but not necessarily for jewelers.
Mastercard predicts retail sales will grow 3.7 percent in November and December, though jewelry sales are forecast to remain essentially flat amid a “rebalancing” in consumer spending.
Purchase, N.Y.—‘Tis the season for the holiday forecasts to keep rolling in.
Mastercard released its outlook for the 2023 holiday season last week and, like Bain & Company and Deloitte, it expects retail sales to grow, but not by much.
According to Mastercard SpendingPulse, U.S. retail sales (excluding automobiles) will increase about 4 percent year-over-year during the holiday season, defined as Nov. 1-Dec. 24.
SpendingPulse measures both online and in-store retail stores across all forms of payments (not just Mastercard purchases). It is not adjusted for inflation.
Consumer spending is expected to rise across all but one of the five categories SpendingPulse tracks—jewelry.
Jewelry sales are expected to decline 0.3 percent year-over-year amid what the company described as a “rebalancing” in consumer spending.
In 2022, there was pent-up demand. Consumers had excess savings and wages were rising while inflationary pricing aided retailers.
This year, Mastercard expects spending to normalize in line with macroeconomic trends. Demand is leveling off and consumers are finding themselves with less of a financial cushion as inflation continues to cut into their savings.
The fine jewelry industry already has begun to witness the slowdown after two years of sky-high sales.
The industry’s largest retailer, Signet Jewelers, had a rough second quarter due in part to a decline in the number of engagements while De Beers Group is spending $20 million to ensure consumers stay interested in diamonds, natural diamonds specifically.
“This holiday season, retailers will be vying for consumer dollars. With numerous choices and tightening budgets, you can anticipate shoppers to be increasingly selective and value-focused,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Inc.
“We expect the most effective holiday strategy will be to meet consumers where they are— personalized promotions to in-store experiences will be key in doing so.”
Related stories will be right here …
Mastercard released its outlook for the 2023 holiday season last week and, like Bain & Company and Deloitte, it expects retail sales to grow, but not by much.
According to Mastercard SpendingPulse, U.S. retail sales (excluding automobiles) will increase about 4 percent year-over-year during the holiday season, defined as Nov. 1-Dec. 24.
SpendingPulse measures both online and in-store retail stores across all forms of payments (not just Mastercard purchases). It is not adjusted for inflation.
Consumer spending is expected to rise across all but one of the five categories SpendingPulse tracks—jewelry.
Jewelry sales are expected to decline 0.3 percent year-over-year amid what the company described as a “rebalancing” in consumer spending.
In 2022, there was pent-up demand. Consumers had excess savings and wages were rising while inflationary pricing aided retailers.
This year, Mastercard expects spending to normalize in line with macroeconomic trends. Demand is leveling off and consumers are finding themselves with less of a financial cushion as inflation continues to cut into their savings.
The fine jewelry industry already has begun to witness the slowdown after two years of sky-high sales.
The industry’s largest retailer, Signet Jewelers, had a rough second quarter due in part to a decline in the number of engagements while De Beers Group is spending $20 million to ensure consumers stay interested in diamonds, natural diamonds specifically.
“This holiday season, retailers will be vying for consumer dollars. With numerous choices and tightening budgets, you can anticipate shoppers to be increasingly selective and value-focused,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Inc.
“We expect the most effective holiday strategy will be to meet consumers where they are— personalized promotions to in-store experiences will be key in doing so.”
The two categories Mastercard SpendingPulse predicts will post the largest increases in spending this holiday season are electronics (up 6 percent year-over-year) and restaurants (up 5 percent year-over-year).
Mastercard said electronics, gadgets and gaming are expected to be popular among consumers this year, as artificial intelligence, immersive experiences, and digital workspaces continue to the change the way people work and play.
In addition, consumers who purchased new electronics at the onset of the pandemic may be looking to upgrade this year.
As for restaurant spending, the company said consumers are keen on gathering with loved ones for shared meals and festivities outside of the home after a few years of being isolated.
When it comes to where consumers will be shopping this holiday season, Mastercard said this season’s shopper is looking to “make purchases anytime, anywhere.”
It predicts in-store sales will increase 3 percent year-over-year while e-commerce sales are expected to grow 7 percent.
Editors' Picks
Sponsored by
More on Surveys
The Latest
Supplier BulletinMay 08, 2024
Fusing Past and Present at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry and Watch Show
EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
Weekly QuizMay 02, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
AuctionsMay 07, 2024
Sotheby’s to Auction Sylvester Stallone’s WatchesThe highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
CollectionsMay 07, 2024
Phillip Gavriel Pays Tribute to Venice With New CollectionThe “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
Events & AwardsMay 07, 2024
JA Now Accepting Applications for New Bench Jeweler ScholarshipThe Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
Policies & IssuesMay 06, 2024
Rolex Files Objection to Hallmark’s New Trademark ApplicationThe Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
EditorsMay 06, 2024
Q&A: 8 Questions With Anglo American’s Benny Oeyen The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
MajorsMay 06, 2024
Malabar Gold & Diamonds Opens 4th U.S. ShowroomThe Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
Events & AwardsMay 06, 2024
Ben Bridge Jeweler Accepting Applications for Lonia Tate ScholarshipIt will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado JewelerWheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight ProgramPGI partnered with four new and seven returning designers for its annual platinum capsule collection.
MajorsMay 03, 2024
Kristie Nicolosi Joins WJA Board AgainNicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the DerbyKarina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on EmeraldsMay’s birthstone is beloved for its rich green hue and its versatility.
SourcingMay 01, 2024
Opsydia Names New Sales and Marketing Director Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
