Jewellery trade defies reports of confidence dip

28 July 2010 | By James Knowles

Jewellery retailers are reporting increased takings on the high street, despite claims consumer confidence has dipped.

The KPMG/Synovate Retail Think Tank’s (RTT) July members’ sitting revealed that retail health improved from 85 points in the first quarter of 2010 to 86 in the second, on its Retail Health Index. This was supported by findings from the Confederation of British Industry’s (CBI) Distributive Sales Survey for July, which revealed that 51% of its surveyed retailers said sales were higher in July than a year ago, exceeding its expectations.

Improved retail conditions on the high street are in contrast to findings from both the British Retail Consortium (BRC) and RTT that consumer confidence has taken a hit. The BRC and market research company Nielsen released their latest Consumer Confidence Index this week, which found consumer confidence had slipped two points on its scale to 78 in the second quarter of 2010, due to fears over job prospects and the economy, the first fall since April 2009.

Rodney Banks-Lyon, owner of Banks Lyon Jewellers in Lancashire, said consumer confidence has shown no sign of abating in his store. He said: “Business picked up considerably in the second quarter this year in my store. I think that now we’ve got the election out of the way, consumers know where they stand and have a greater sense of certainty and confidence.”

Jewellers based in London have benefitted from the recovery of the city and increased international trade, propelled by the weakened pound. Stuart Pattinson, store manager of jeweller Nicholas James in Hatton Garden, echoed this and said business is improving in his store. He said: “I don’t think consumers are that concerned about the incoming VAT increase, and sales in our store were up against both the first quarter this year, and compared to the same period last year.”

Sue Monroe, director of Forum Jewellers in Broadstone, Dorset, agreed the mood among consumers remains positive. She said: “We’re doing well in this store and we’re up on last year. But I’m dreading the VAT increase and necessary price changes. It’s a logistical nightmare and we’re going to have to start upping prices in October.”