WatchPro – August 2019

GFK / RETAIL SALES ANALYSIS

14 WATCHPRO / AUGUST 2019 / watchpro.com

BRITAIN’S BULL RUN OF WATCH SALES GROWTH SINCE THE BREXIT VOTE CRASHED THE POUND IN 2016 IS CONTINUING, BUT

THE BOTTOM END OF THE MARKET CONTINUES TO STRUGGLE AND NOW EVEN LUXURY WATCH SALES ARE STALLING.

S

ales of traditional wrist

watches decreased

year on year in May

and June, down -0.6%

and -0.9% respective-

ly. This means that sales so far in

2019 fell in 3 separate months in

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er being March when sales were

down -1.5%. Overall though, due

to stronger performances at

the start of the year, value sales

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2019 is positive, at +2.1%.

This positivity, as noted previously,

continues to be driven by the luxury

gents market. Sales across all watch

types above £1,000 continue to be

robust, up 7.4% in the six months to

June, whilst the Gents market as a

whole is up 0.4%. Interesting though,

Gents watch sales were down -2.7%

in June versus the year before.

Ladies watch sales continue to

decline. Sales were down -5.5% in

the year to date and fell by the same

rate in June 2019 vs June 2018.

Whilst the performance of the La-

dies market’s remains at a relatively

consistent level (-6.8% over the 12

months to June 2019), the Gents

market continues to slow down.

Value sales for Gents watches were

up 2.0% in the last 12 months, with

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of 2019 and, as we have seen, sales

were negative in June.

There was, however, a more posi-

tive picture for online sales in June,

which were up 1.9% against June last

year, though one must remember

that 12 months ago the World Cup

was in full swing which may have

impacted sales. In fact June was the

only month this year in which online

SLOWDOWN IN SALES

STARTS TO BITE IN Q

Volume watch sales

growth in Q2 2019

-17.5%

(watches priced £500-1000)

Luxury watch sales

growth in year to June

+8.8%

(watches priced >£1000)

value grew against 2018. It’s also

worth noting that volume sales in

June were down -6.0% year on year,

meaning that online growth came

from higher price points.

Sales over £1,000 have been

healthy for several years, but here

as well a slowdown is evident. Over

the 12 months to June value was up

8.8%, with growth reaching 14.9%

in January. Recently though, value

growth has slowed, down to 3.2% in

May and 3.0% in June.

At the same time sales at

price points under £1,

continue to be challeng-

ing and show no sign of

improvement. A -13.1%

decline was recorded

between £100-£500 in

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a -13.5% fall between £500-

£1,000. Further evidence of the

wider slowdown in sales can be

seen from the decline of this latter

price point in Q2 2019 vs Q2 2018,

with value down -17.5%.

The impact of fewer watches

being sold continues to affect the

market, with this now extending

to higher price points which were

previously in growth. With other

wearable products in strong growth

and consumer habits continuing

the change, the second half of 2019

looks challenging, particularly with

the uncertainly around Brexit mak-

ing planning for the future that

much harder.

AUTHOR

CREDIT:

Paul Mitchell,

Senior Client

Insight Director

paul.mitchell@

gfk.com / +

207 890 9045

http://www.gfk.com/

uk / http://www.twitter.

com/gfk

Year on year growth in value of watch sales at all price points

Aug

-^16
Sep
-^16
Oct
-^16
Nov
-^16
Dec
-^16
Jan
-^17
Feb
-^17
Mar
-^17
Apr
-^17
May
-^17
Jun
-^17 Jul-^17
Aug
-^17
Sep
-^17
Oct
-^17
Nov
-^17
Dec
-^17
Jan
-^18
Feb
-^18
Mar
-^18
Apr
-^18
May
-^18
Jun
-^18 Jul-^18
Aug
-^18
Sep
-^18
Oct
-^18
Nov
-^18
Dec
-^18
Jan
-^19
Feb
-^19
Mar
-^19
Apr
-^19
May
-^19
Jun
-^19

• 20%


• 15%


• 10%


• 5%

0%

5%

10%

15%

20%

25%

30%