Spending on Engagement Rings Forecast to Fall
Posted on February 2, 2009We ran a story last week about the National Retail Federation's study that sees Valentine's Day spending falling this year because of the recession. One of the categories that will be falling is jewelry. Many engagement rings are sold during Valentine's Day but even that specific jewelry category is expected to fall. The Wall Street Journal reports that the average amount spend on an engagement ring in 2009 is expected to fall nearly 10%.
Engagment ring shoppers can buy an engagement ring with a plan to trade up for a pricier ring with a bigger diamond later. This is one of ten tips suggested in an article from CNN/Money. The article says jewelry retailers like Tiffany & Co. and Jeff Cooper will "apply the full retail purchase price toward another ring (that's at least double the value) for as long as you own your original one."The weeks leading up to Valentine's Day are typically a busy time for jewelers selling engagement rings, as the date is the second-biggest time of year (behind Christmas) for wedding proposals. The bad news for jewelers this year, however, is that the average amount spent on an engagement ring is expected to drop 9.8% in 2009 to reach $2,900.
The projected decline follows a 30% drop in the average amount spent on an engagement ring in 2008, says Shane McMurray, chief executive of The Wedding Report, a Tucson, Ariz.-based firm that specializes in wedding industry market research. Together, the declines suggest a significant shift in consumer attitudes. In past economic downturns, he says, the wedding industry has been more resilient as people continued to spend on weddings.