by David Turgeon, EVP
The Number One Challenge Facing Jewelers This Holiday Season
How tightening budgets and shifting mindsets are redefining holiday sales for 2025.
Heading into the final quarter of 2025, the jewelry industry is facing a clear headwind: tightening consumer budgets and evolving spending behavior.
After several robust post-pandemic years, retail optimism has cooled. According to PwC’s Holiday Outlook 2025, Deloitte’s U.S. Holiday Retail Survey, and McKinsey’s jewelry spending forecasts, consumers plan to spend about 5% less overall, with gift budgets down by roughly 11% from last year. Deloitte’s annual retail survey shows that 77% of shoppers expect higher prices, and over half believe the economy will weaken within six months. Even affluent households, traditionally the most resilient luxury buyers, are taking a more measured approach to discretionary purchases.
For jewelers, that shift is palpable. Traffic patterns may look the same, but conversion rates are thinner. Browsing is up; big-ticket purchases are not as frequent. The challenge isn’t that customers no longer value jewelry, it’s that they’re thinking longer and harder before committing.
Why This Matters More for Jewelers
Jewelry has always been an emotional purchase. It marks milestones, symbolizes love, and carries stories. But when people tighten their wallets, even emotion competes with practicality. Engagement rings, custom designs, and heirloom-quality pieces may still sell—but shoppers are weighing meaning and longevity over pure luxury.
That mindset reshapes the sales floor. Customers might choose a pair of diamond studs over a tennis bracelet, or opt for a colored gemstone instead of a larger carat diamond. The average ticket drops, and promotional pressure builds. Competing on price alone, however, can be dangerous. Discounting erodes brand equity, diminishes the perception of craftsmanship and impacts gross profit if not carefully managed.
The jewelers who navigate this moment best will be those who reassert the true value of what they sell, not as commodities, but as symbols. That means highlighting design, quality, service, and story at every touchpoint.
Reframing Value
To stay relevant and profitable, jewelers need to redefine “value” in ways that resonate with today’s buyer:
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Meaningful messaging: Listen to your customer and then tell the story behind every piece in a manner relevant to them. Whether it’s estate jewelry, a custom creation, or a natural diamond, communicate what makes it special and enduring.
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Mid-range luxury focus: Inventory should lean toward the sweet spot—$1,000 to $5,000—where customers still feel they’re gifting something significant but attainable.
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Personal service: Relationship-building outlasts transactions. Personalized outreach, private appointments, and thoughtful follow-ups carry more weight than any off-price strategy.
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Experience matters: The in-store holiday experience should feel like a celebration, not a transaction. Warm hospitality, careful listening and genuine expertise turn browsing into buying.
Looking Ahead: Stability Through Substance
The market’s contraction isn’t necessarily bad news - it’s an opportunity. Consumers aren’t abandoning luxury; they’re filtering it. They want fewer things, better made, chosen with care. For a heritage jeweler, that’s the sweet spot. The same values that built your reputation: craftsmanship, trust, and authenticity are the ones customers are craving most.
The Bottom Line
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Budgets are tighter, but emotion still sells. Consumers may spend less, but they still want gifts with meaning and permanence.
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Discount fatigue is real. Avoid the temptation to race to the bottom; build authentic value by leading with meaningful story, service, and substance.
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Adapt inventory and messaging. Position strong mid-range price point collections and communicate “lasting value” instead of “lowest price.”
- Strengthen relationships. In a cautious economy, trust drives sales more than urgency ever could.
In short: this holiday season isn’t necessarily about selling more jewelry; rather, it’s about helping people feel good about what they choose to buy. Those of us who center our efforts on creating value through meaning, not markdowns, and strengthen relationships through authenticity will perform best when the year closes and the tallies are done.
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