Retail Sales Monitor: Jewellery Sales Hold Strong Amidst Challenging

The British Retail Consortium (BRC) has reported that Christmas trading in 2024 did little to offset a difficult year for UK retailers. Non-food sales faced significant challenges, though categories such as jewellery, beauty products, and electricals saw increased sales during the festive season.

Weak Sales Despite Christmas Boost

Helen Dickinson OBE, Chief Executive of the BRC, highlighted that the “golden quarter” of October to December 2024 was marked by weak consumer confidence and difficult economic conditions. Non-food categories, in particular, suffered year-on-year declines, though specific product lines, including jewellery, experienced higher sales during the Christmas period.

While food sales experienced slight growth, broader sales growth in 2024 lagged behind inflation. Dickinson projected average sales growth of 1.2% in 2025, below the expected shop price inflation rate of 1.8%. This disparity indicates potential declines in sales volumes.

Dickinson also warned of additional pressures on retailers, including an anticipated £7 billion increase in costs driven by rising National Insurance Contributions, the national living wage, and new packaging levies. She called on the government to enact meaningful business rates reform, stating:

“Government must find ways to mitigate this, so that retailers can invest more in growth and jobs, starting with its planned business rates reform where it must ensure that no shop ends up paying higher rates than they do already.”

Impact of Black Friday

Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, noted that Black Friday, occurring late in November, extended its influence into the Christmas shopping season. Categories such as beauty, technology, and jewellery saw increased sales, driven in part by demand for AI-enabled devices and premium advent calendars.

Ellett noted that despite December’s slight uptick, overall sales during the golden quarter remained subdued, reflecting ongoing financial caution among consumers.

“In 2025, we will see retailers increasingly utilising customer data and AI technology to deliver increased personalisation when it comes to targeting products and offers to their current, and potential, customers,” Ellett added.

Shopper Behaviour and Economic Outlook

The grocery sector also experienced modest growth during Christmas, as consumers took advantage of increased wage growth to indulge in premium items. However, according to Sarah Bradbury, CEO of IGD, this behaviour may be temporary given the weak economic outlook for 2025 and the prospect of rising household bills.

Implications for Jewellers

Jewellery’s steady performance during the festive season underscores its position as a consistent choice for gifting, even in a challenging retail environment. However, the projected cost pressures on retailers, alongside restrained consumer spending power, could impact demand in 2025.

Jewellers may need to utilise customer data and focus on personalisation strategies to stay competitive. Retailers face another challenging year, where efficiency and adaptability will be key to managing economic pressures and meeting consumer expectations.