Dealers had a challenging year, with sales decreasing 3% year-over-year to USD 36.1 billion. Facing elevated costs on line items such as staffing, logistics, and rent and mortgage payments, dealers and galleries found it difficult to stay ahead, with 40% of dealers surveyed saying they were less profitable than in 2022.
‘For dealers, the question this year was not “How much did you sell?” but rather “How much did you make?”’ McAndrew said. ‘Everybody does well when things are going well, but only the people who are strategic and financially minded do so in more straitened times. I’m reassured by the tenacity that some businesses showed in getting through this challenging year.’
Auctioneers did not get off easy, either, with serious declines at the top end. The ultra-high end, for example, comprising works priced at USD 10 million and above, was down 40% by value of sales in the 2023 season. Overall, auction sales fell by 7%, rather than the dealers’ 3%, to USD 25.1 billion. While six artworks sold for north of USD 100 million in 2022, just two sold at that level in 2023, McAndrew pointed out.
‘This was very much supply-driven,’ McAndrew observed. ‘Because sellers are unsure of how things were going in the market, they didn’t bring things to auction unless they had to sell.’
