Jewelry sales will rise 6 percent this holiday season,
according to a new forecast from IBISWorld,
which publishes industry research.
However, overall jewelry store revenue is expected to
decline 2.5 percent in 2010, says IBISWorld spokeswoman Savannah Haspel, due to
decreased margins and weak consumer demand.
An IBISWorld report on
the industry is upbeat about the future, predicting that jewelry stores will
have a “strong rebound” as the economy improves and they will maintain their
market share even in the face of alternate channels.
“Consumers will not likely turn to Walmart or other
non-jewelry retailers to purchase high-valued pieces like engagement rings,”
the report says. “This factor will work to limit jewelry stores’ competition
from these alternative retailers in the next five years. The high level of
customer service offered at many traditional jewelry stores will remain a
trademark of the industry.”