Monday, 7th June 2004 (4837 views)

Jewellery retailers in South Africa have experienced top performance over the last year, thought to be the result of a decline in interest rates.

The rates not only mean consumers have more money to spend on items such as jewellery but that instalment payments on goods are lower, a key issue since many sales are done on credit.

It is thought in time the jewellery sector will see a better performance than clothing and that sales have also been boosted by a stronger rand and a greater buying power as the middle class population grows, according to Business Report.

One retailer that has benefited is Foschini Group Jewellery, with a 13.4 per cent rise in turnover in its 2004 financial year, a result which it claims was helped by the worldwide shift in seeing jewellery as more of a fashion item.

Galaxy also performed well reporting a 13 per cent increase in turnover and a 10 per cent rise in same store growth.

Analysts believe the jewellery market has now matured and that reinvention is the key to success for jewellers.

Ken Schreuder, the managing director of Foschini Group Jewellery explained: "Jewellery retailers have become more astute in their way of doing business. One has continuously to track the change in trends worldwide and adopt your offering to customers accordingly."

 

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