There has been a sharp decrease in engagement ring sales and the Covid-19 pandemic is to blame.
More than three years ago, a worldwide lockdown posed many challenges for both budding couples and long-term relationships. For some new couples, the prospect of dating long-distance had them calling it quits before they even reached the three-month mark. For others, living in close quarters during the pandemic caused a breakdown – and a breakup – of their relationship.
In a new report from CNN, Signet Jewelers – the largest jewelry company in the United States – has said that many early relationships particularly failed during lockdowns in 2020, creating what they call an “engagement gap”.
Signet Jewelers is the parent company of major engagement ring retailers, including Zales, Jared, Kay Jewelers and Diamonds Direct. During the company’s investor day last week, president and chief consumer officer Jamie Singleton said the jewelry industry is still reeling from the effects of the pandemic years later.
“We’re still seeing it today,” Ms Singleton told CNN.
Engagement jewelry sales are also expected to remain “lackluster” until next year, per the network, and must grow approximately 25 per cent by 2026 just to return to pre-pandemic engagement levels.
However, there is a bright side to this so-called “engagement gap”. Signet Jewelers reported that there’s been an eight per cent increase in dating amongst singles since the start of the pandemic, which is “promising” for a pickup in engagements.
The decrease in engagement ring sales comes just one week after David’s Bridal filed for bankruptcy and laid off more than 9,000 employees. In a press release shared on 17 April, CEO of David’s Bridal James Marcum explained how the pandemic has ultimately affected the company’s need to find a new buyer.
“We have successfully modernised our marketing and customer interaction processes and driven our retail service levels to best in class. Nonetheless, our business continues to be challenged by the post-COVID environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward,” he said.
Just two days prior to the announcement, David’s Bridal revealed its plans to lay off 9,236 employees across the country. The wedding dress retailer began its first round of layoffs in stores in Pennsylvania on 14 April and will continue until 11 August.
The coronavirus pandemic upended the billion-dollar wedding industry, forcing many engaged couples to put their wedding plans on hold. Some couples resorted to intimate ceremonies at home – or over Zoom – in accordance with social distancing measures, while others had to reschedule their wedding plans multiple times.
Now, experts have projected a wedding boom more than three years later. According to The Wedding Report, an estimated 2.5 million couples in the United States were expected to tie the knot in 2022, a 30 per cent increase since 2021 and the most in any year since 1982. While more couples are getting married, they’re also paying more for their weddings too. Post-pandemic inflation rates had couples spending, on average, $27,000 for their weddings in 2021, compared to $20,000 in 2020.
