Watches in the US

2020 IMPACT

Watches heavily impacted by lockdowns and economic constraints

With consumers suffering from economic constraints and having few places to wear new watches amid lockdowns and quarantines, watches is among the product categories hardest-hit from the effects of COVID-19, with basic, mid, and high watches all expected to register their steepest value sales declines in recent years in 2020. With the growing popularity of smartwatches, especially the Apple Watch, having been eroding sales of all traditional watches prior to the pandemic, the onset of COVID-19 meant quartz digital, quartz analogue, and mechanical watches fell further out of favour with consumers.

Closed stores limit sales, but deliver boost to e-commerce

As the majority of watches sales had occurred through store-based channels, especially department stores and jewellery and watch specialist retailers, prior to the onset of the Coronavirus pandemic in the US, sales of watches were further limited throughout 2020 by the prolonged closures of these stores under government-mandated lockdowns. Although watches’ sales were able to continue unabated in some retailers deemed essential and thus able to remain open throughout the year, such as hypermarkets and warehouse clubs, many consumers limited their time spent shopping in these stores in order to reduce their risk of exposure to the virus.

Travel restrictions hit highest-value watches hardest

Sales of traditional watches were pressured by the rise of smartwatches over the review period, resulting in continued sales declines across many product categories. High mechanical watches, however, the highest-value product category within watches, was far less affected by the growing trend, and even registered positive value growth from 2017-2019 as the category’s iconic brands and high resale values resonated with domestic and visiting foreign consumers alike.

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