Study: Metals prices may hurt holiday jewelry sales
November 06, 2007
Agoura Hills, Calif.—The jewelry category may struggle this holiday season, forecasts Stevan Buxbaum, executive vice president of
Buxbaum Group, a turnaround investors and consultants company.
"It is more expensive this year thanks to the rising prices of precious metals, and you won't get quite as much for your dollar," Buxbaum said in a media release.
Consumers also won't have to wait long for merchandise to go on sale due to the slowing economy and the sag in consumer spending, Buxbaum predicts.
"We'll see a lot of retailers discounting earlier," Buxbaum said. "They're not going to play the game of waiting to see if someone else cuts first. We've already seen Wal-Mart make a price move at the beginning of October. It's not even waiting for Halloween, and that's amazing."
Buxbaum also said that customers' nerves will dictate where they shop.
"People will move down a notch in their consumption habits," Buxbaum said. "If they were department store shoppers, you might see them a little more inclined to shop at Target. If they shopped at
Abercrombie and Fitch last year, they may turn instead to a less-expensive retailer like Aeropostale. They will still be looking for strong fashion items, but they may go a notch down in terms of price."
The issue of price is also a huge factor when it comes to European luxury items such as leather goods. Although still appealing, the appreciation of the euro against the U.S. dollar has made merchandise in Europe more expensive than last year. Consequently, Buxbaum predicts that American producers of luxury goods will benefit.
Electronics will continue to remain hot holiday items, Buxbaum said, as will accessories, especially "one-size" items such as handbags. Apparel sales will ultimately be determined by the weather.
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