Japan's Luxury Jewelry Sales Hit Record High as Weak Yen Fuels Demand

MacroIndustry

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Japanese luxury jewelry sales reached a record high in the first half of 2026, driven by domestic consumers seeking stores of value amid a weak yen and rising living costs. Sales of gems, precious metals and artwork at Japan's department stores rose 19% year over year to 330 billion yen, or about $2 billion, the highest for the period since records began in 2008. This growth far outpaced the 3.2% increase in overall department-store sales, while duty-free sales also rose 3.2%, indicating domestic shoppers were the main force. The yen trades near 164 per dollar, its weakest since the 1980s, and core consumer prices excluding fresh food rose 1.6% in June. Tokyo-based jewelry maker Happiness and D has shifted more of its business toward jewelry, with its president noting it is becoming more common for consumers to hold 5% to 10% of their assets in gold rather than cash. Bloomberg Intelligence analyst Catherine Lim observed that Japanese consumers are increasingly choosing branded jewelry over handbags as higher living costs make them more selective. Luxury groups with strong jewelry portfolios are benefiting: Richemont, owner of Cartier, reported a 20% year-over-year sales increase in its latest quarter, with Japan delivering the strongest regional performance led by jewelry, while Kering reported a 57% increase in Japanese jewelry sales during the first quarter even as its fashion and leather-goods business in the country declined 14%.