Wednesday, 7th December 2005 (3770 views)

The US luxury retailer segment is still counting on a bumper yuletide period, despite disappointing November sales performances from among its numbers.

Doubts have been raised about whether gold jewellers and other luxury retailers can maintain their stellar run of form following downbeat results from companies like Saks and Nordstrom.

High-end king Nordstrom, for instance, saw same-store sales jump 2.8 per cent in November – but that was well short of market expectations.

Analysts have pointed out that the Christmas luxury goods market tends to kick off later than the low-end goods sector, as it is not as price-sensitive.

But all agree that December performances will be a crucial indicator of the strength of the market.

"It's hard to make too big of a deal out of one month of sales," said Darrell Rigby from Bain and Co.

"Now, if December is also weak, that could signal a dangerous curve ahead."

But there are signs that the jewellery market may outperform other segments of the luxury goods market this Christmas.

A straw poll of US jewellers conducted this week by the National Jeweler suggested most have seen sales rise on last year.

And anecdotal evidence suggests yellow gold is coming back in a big way in the run up to the big day.

 

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