January is traditionally seen as a restocking period after the holidays, particularly for retailers needing products for upcoming events like Valentine’s Day. However, large chains plan inventory well in advance using sophisticated digital systems, with holiday season success having a lesser impact on their restocking needs compared to independent retailers, according to an anonymous supplier.

Despite retailers typically determining their buying needs by the end of January, this month has been slower than usual, with a perceived late shopping season and a cautious approach to inventory due to diamond market uncertainty. The flow of dollars through the US jewellery industry, as indicated by the Jewellers Board of Trade's index, typically drops at the start of the year before picking up around March, reflecting inventory buying levels.

This year's weak January is further influenced by price uncertainty in the diamond market, with skepticism at the dealer level about stocking due to uncertain price trends. The February-March show season is expected to revive independent jewellers' activity after a quieter January.