IBM Predicts 5% Rise in Holiday Jewelry Sales

RAPAPORT... IBM has forecast strong growth in jewelry sales over theholiday retail season amid robust consumer sentiment. Purchases in the category will rise an estimated 5.2% yearon year during the festive period, IBM vice president and chief scientistMichael Haydock said Thursday. Jewelry is in fourth place in the company's list of the topsix categories, behind consumer appliances and various types of clothing.Women's clothing came in fifth, while footwear nabbed the sixth spot. Jewelry has fared well even in a shaky period for some retailers. The category was one of the strongest at JCPenney inthe third quarter, even as the company's total sales fell 5%, it noted last week. "Jewelry has been a business that we've been pleased with," thedepartment-store chain's CEO, Jill Soltau, said in a call with investors onNovember 15 following its results announcement. "I think the customer continuesto respond very nicely to what [the jewelry division] has done from a curationand merchandising perspective around great gifts for the holiday season," theexecutive said during the session, which was transcribed by SeekingAlpha. Research groups are expecting strong increases in totalretail sales during the festive season. Revenues will rise 4.8% overall, IBMpredicted, while the National Retail Federation expects a 4.3% to 4.8% increase.Consumer sentiment has remained positive throughout the year, according to the Universityof Michigan's Surveys of Consumers. However, holiday sales could suffer if the US FederalReserve raises interest rates significantly, University of Michigan chiefeconomist Richard Curtin added. "While there is no reason to anticipate a sudden change ininterest-rate expectations in the next few months, it is still an importanttask for the Fed to avoid hitting the threshold that causes widespreadpostponement of purchases," he noted. Image: Jewelry in a gift box. (Shutterstock)