By
Bloomberg
Published
Dec 6, 2023
American consumers are on the hunt for major deals this holiday season and they’re shifting their shopping patterns as a result, says the chief executive officer of the country’s largest jeweler.
This year, a cohort of mainly female shoppers who would normally have started their holiday shopping in September and finished by Thanksgiving instead started buying gifts around Black Friday, says Gina Drosos, the CEO of Signet Jewelers Ltd., which owns Kay Jewelers, Zales, Jared and other brands.
“This year, that same customer was all over Black Friday and the week before Black Friday,” Drosos said in an interview after the company reported its third-quarter earnings. “She’s looking for the best deal.” That’s skewing jewelry shopping later in the season than last year, Drosos added.
Consumers are watching their wallets this holiday season even as the pace of inflation ebbs and unemployment remains low. Many shoppers are thinking, “‘I can’t afford to pay too much,’” Drosos said. “‘I need to be very careful about my spending.’”
Another cohort of shoppers who are mainly male typically wait until the 10 days or so before Christmas to purchase a piece of jewelry for a loved one.
While that shopper is usually less concerned about price, this year he’ll be looking for better deals because many smaller mom-and-pop jewelers have been discounting due to sluggish sales and higher inventory. And those shops will continue to do so during the holiday season, Droso said, in line with the broader retail market.
“We’re prepared to be as promotional as we need to be,” Drosos said.
But Signet is poised to benefit this quarter from a pickup in engagements. That’s crucial for the company, which generates around half of sales from engagement rings and other bridal merchandise.
There’s been a lull in weddings during the past year or so after a surge in celebrations in 2022, when Americans tied the knot at the greatest pace in four decades following an extended pause during pandemic restrictions.
December is the top month for buying engagement rings, Drosos said, and the company is already seeing evidence of a rebound. Google searches for engagement rings are up year-over-year for the first time in two years, and Signet’s database of consumers shows more couples have been moving in together compared with last year — an important precursor to a potential engagement.
Signet shares were up 4.1% in New York trading at 12:02 p.m. The stock was up 25% this year through Monday, ahead of the 19% rise of the S&P 600 consumer discretionary index.