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DESPITE GLOBAL PANDEMIC, U.S. REGISTERS  BLOCKBUSTER HOLIDAY SALES SEASON

 

Despite the economic challenges of the coronavirus pandemic, retail sales during 2020’s November-December holiday season in the United States grew an unexpectedly high 8.3 percent over the same period in 2019 to $789.4 billion, exceeding the National Retail Federation’s holiday forecast, the organization has reported.

The numbers include online and other non-stores sales, which were up 23.9 percent at $209 billion.

NRF had forecast that sales during the 2020 holiday season – defined as November 1 through December 31 – would increase between 3.6 percent and 5.2 percent over 2019 to a total between $755.3 billion and $766.7 billion. The forecast called for online sales to increase between 20 percent and 30 percent to between $202.5 billion and $218.4 billion. The numbers excluded automobile dealers, gasoline stations and restaurants.

Retail sales during December were down 1.6 percent seasonally adjusted from November but were up 8.6 unadjusted year-over-year. That built on a year-over-year gain of 8 percent in November despite November’s month-over-month decline of 0.9 percent from October. As of December, the three-month moving average was up 8.9 percent over the same period in 2019.

NRF’s numbers are based on data from the U.S. Census Bureau, which said that overall December sales – including auto dealers, gas stations and restaurants – were down 0.7 percent seasonally adjusted from November but up 2.9 percent unadjusted year-over-year.

GOOD SIGN FOR CONTINUING RECOVERY OF U.S. ECONOMY

“Despite unprecedented challenges, consumers and retailers demonstrated incredible resilience this holiday season,” NRF President and CEO Matthew Shay said. “Faced with rising transmission of the virus, state restrictions on retailers and heightened political and economic uncertainty, consumers chose to spend on gifts that lifted the spirits of their families and friends and provided a sense of normalcy given the challenging year.

Shay added that the NRF believes that stimulus proposal proposed by the new Biden administration in Washington, D.C, which includes direct payments to families and individuals, will provide further aid for small businesses and tools to keep businesses open, and keep the economy growing.”

NRF Chief Economist Jack Kleinhenz said that consumers shifted into high gear in December, giving the holiday season a strong finish that could be a good sign for the continuing recovery of the economy this year. The 8.3 percent holiday season increase was more than double the 3.5 percent average holiday increase over the previous five years, including 2019’s 4 percent gain.

The survey was conducted on behalf of the natural Diamond Council, which advances natural diamonds’ desirability by publishing in-depth features and trend reports, and sharing resources and information with consumers.

“There was a massive boost to most consumer wallets this season,” Kleinhenz said. “Consumers were able to splurge on holiday gifts because of increased money in their bank accounts from the stimulus payments they received earlier in the year and the money they saved by not traveling, dining out or attending entertainment events. Some families are still struggling, as are some retail sectors. But the promise of a new round of stimulus checks after a deal was struck before Christmas helped increase consumer confidence. Consumers were also encouraged by the news of COVID-19 vaccines becoming available, which helped offset concerns about increased infection rates and state restrictions on activity.”

INTENTION TO BUY DIAMOND JEWELRY IS HIGH

According to the NDC poll, the future for fine jewelry purchasing is optimistic as 37 percent of respondents said they intend to buy fine jewelry in the next 12 months and 27 percent expect to receive it.

Some 20 percent of the respondents say they will either definitely or probably purchase natural diamond jewelry specifically and 12 percent claim they expect to receive it as a gift. These future purchases will largely be affected by social media platforms where Millennials and Gen-Z often obtain shopping inspiration.

The analysis reveals further that consumers very commonly research diamond jewelry before making a purchase.

Consumers sought out four to five retail touch points on average beforehand. Most of this research was conducted online at 2.6 touch points being online and two being in-person.

About 66 percent of respondents compared pricing online, 26 percent looked for social media advice and inspiration, and 24 percent read articles for tips. Some 36 percent of respondents said they would consult social media platforms for ideas and advice prior to purchasing diamond jewelry.

However, most of the actual purchases occurred in-store, although 28 percent were made online in the last 24 months. Of the retail purchases, most were made at independent jewelry stores rather than nationally known jewelry stores.

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