Valentine’s Day Shopping Revives Jewelry Sales

US jewelry sales rebounded in January as consumers shopped early for Valentine’s Day gifts, according to Mastercard SpendingPulse.

Revenue for the category rose 6.5% year on year during the month. The increase follows nine months of stagnant growth, Mastercard reported last week. Jewelry sales declined 5.4% during the November 1 to December 24 holiday season.

Overall retail spending advanced 9% year on year, with e-commerce up 8% and in-store purchasing climbing 9%. Those gains represented a jump from the previous month, when total spending was up 8%. It also denoted a return to purchasing in brick-and-mortar locations, compared to the Christmas period, when sales grew 11% online and only 7% at physical stores.

“Consumer spending remains resilient in the first few weeks of 2023,” said Steve Sadove, senior adviser for Mastercard. “[Our] insights show that the overall retail story remains largely positive with January posting a solid month of growth across the country.”

Meanwhile, Mastercard noted a shift to consumer spending on services, as outlay on restaurants jumped 24% year on year. Sales of goods for the home weakened along with housing-related sectors. The furniture and furnishings division slipped 1.2% year on year, Mastercard explained.

“The primary factor driving spending decisions is income — not just income today, but the expectation for income tomorrow,” said Michelle Meyer, North America chief economist for Mastercard Economics Institute. “The strength in the labor market remains a critical support for consumer purchasing power and we’re seeing this reflected in our insights for January.”

Image: Shopping at a mall. (Shutterstock).