Tiffany was caught up short by the huge consumer pullback in luxury jewelry this fall. It seems now that they are scrambling to grow sales by offering discounts. The discout, however, is not as severe as you might expect. According to a message on an internet discussion group, they’re only cutting 15%. That’s a pretty strong sign of confidence by Tiffany’s management that demand won’t drop off too much further. Unfortunately, Tiffany has been way too confident about the strength of consumer spending this winter, which means the failure to give deeper discounts could hurt sales as shoppers hunt for bargains.
I just got a call from a Tiffany and Co sales rep that they reduced their prices on 1 ct diamonds (give or take) by about 15% within the past two weeks. Their baseline started at $10,300ish before, but now it’s down to $8,500. Has anyone else seen major reductions from other retailers? They’re still overpriced relative to online retailers, but they are a lot closer now. These are strange times we are living in and I’m wondering if it would be prudent to hold off on buying an engagement ring until after Christmas. Thoughts?
(Hat Tip: BankerGoneBroke.)