De Beers, the international diamond giant, is grappling with its largest diamond inventory since the 2008 financial crisis. The company has accumulated approximately $2 billion in inventory due to declining demand from major countries, increased competition from lab-grown diamonds, and a drop in weddings caused by the pandemic.
De Beers' CEO, Al Cook, noted poor rough diamond sales this year. Historically a dominant force, De Beers supplied 80% of the world's diamonds in the 1980s and still provides about 40% of natural diamonds globally. In response to declining sales, the company has reduced prices and cut production by about 20% from last year.
De Beers' parent company, Anglo American, is considering spinning it off into an independent entity amid market struggles. Despite challenges, De Beers is investing in marketing campaigns focused on natural diamonds and plans to expand its retail network from 40 to 100 stores globally.
De Beers anticipates a gradual recovery in global diamond demand next year, with signs of improvement in U.S. retail sales.
