Watch sales in the United States are showing strong signs of recovery. From revenue slumping to 62% down, year on year, in May, retailers have reported a rebound to just 20% down in June.
The figures come from the latest Retail Tracking Service from retail analyst NPD.
Reopening of stores in the majority of states in June showed how quickly brick and mortar sales have recovered. They were down 70% in May but averaged just 21% down YoY in June.
NPD tracks watch sales across all price points, and has found certain types of retailers weathering the Covid crisis better than others.
Mass merchants, pure online operations and off-price retailers, which typically have a far greater proportion of sales through ecommerce, were down by only 5% in June, compared to the same month last year, and are now trading at levels above the months before social distancing measures were introduced.
Reginald Brack, watches and luxury industry analyst at The NPD Group, believes watch brands need to be alert to shifting shopping habits.
“Moving forward, it will be important for watch brands to include in the distribution mix retailers that fared better during the store shutdowns, such as mass merchants and online pure-plays. Brands and retailers alike are rethinking their digital presence, as social media and e-commerce have proven to be integral components of the consumer’s learning and buying process,” he suggests.