Jeweller - July, Edition I 2020

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY JULY 2020, EDITION 1
Taking stock
SIMPLE STRATEGIES TO MAXIMISE
PROFITS ON YOUR PRODUCT
Fine resilience
THE FIRST INSTALMENT OF THE 2020
STATE OF THE INDUSTRY REPORT
History lesson
EVOLUTION OF JEWELLERY CHAIN
STORES OVER THE PAST DECADE

Be Reconnected
UNITED | CONNECTED | PROUD | RESILIENT
INTERNATIONAL
J E W ELLERY & WATCH FAIR
SEPTEMBER 12 – 14, 2020
ICC Sydney Exhibition Centre, Darling Harbour
jewelleryfair.com.au
Organised by

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JULY 2020
Contents
This Month
Industry Facets
8 Upfront
24
10 YEARS AGO
Time Machine: July 2010
10
FACTS & FIGURES
COVID-19 Update
27
MY STORE
Erik Runyan Jewelers
13 News
29
56
58
LEARN ABOUT GEMS: BACK IN TIME
Peridot
MY BENCH
Matthew Alexander Crooks
SOAPBOX
June Mann
Features
31
2020 STATE OF THE INDUSTRY REPORT – PART I
Chain reaction: Fine and fashion jewellery chain stores
31 STATE OF THE INDUSTRY FEATURE
Links in the chain
Jeweller explores the evolution of fine and
fashion jewellery chains over the past 10 years.
TOPICS
Better Your Business
45
STOCK STRATEGY
Make the most of your stock with these strategies, writes FRANCESCA NICASIO.
The demise of fashion jewellery chains
Fine jewellery demonstrates unexpected resilience
Mid-sized jewellery chains have mixed results
Some small chains drop off the chain list
IN FOCUS
ZOOMING OUT History Lesson: twists and turns
ZOOMING IN Pandora: past the peak?
HILLS & VALLEYS Key moments for Michael Hill
48
50
52
54
SELLING
Don’t neglect these sales and marketing areas, advises IAN ALTMAN.
MANAGEMENT
DOUG FLEENER discusses the most effective ways to motivate staff.
MARKETING & PR
The best marketing strategy is often the simplest one, says THOMAS YOUNG.
LOGGED ON
BETH WALKER explains how to create consistent, high-quality blog content.
29 LEARN ABOUT GEMS
Peridot
4Discover the mysteries
and history of this
glorious green gem.
FRONT COVER The Graff
Solar Multishape Earrings,
featuring white diamonds, are
inspired by the sun breaking
over the horizon at dawn.
July 2020 | 5

S A MS GR O UP
A U STRA L I A
WE’LL RISE ABOVE THE STORM
These are unsettling times, with COVID-19 impacting our
professional lives and those close to us. We understand it
is challenging to operate under current restrictions, however
we’re getting through this together one day at a time and
there is a light at the end of this tunnel.
Despite the circumstances, take care and make time to
do the things you love with the people you love; it’s
never been more important to support one another, remain
positive and keep smiling.
Wishing you a safe passage through this difficult period.
We’ll rise above the storm.
Steve Der Bedrossian
CHIEF EXECUTIVE OFFICER
ARGYLE PINK
DIAMONDS
Semi Precious Jewellery
T: 02 9290 2199 F: 02 9262 1630 E: Pink@samsgroup.com.au W: Samsgroup.com.au

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Upfront
#Instagram hashtags to follow
Alpha Order
#aquamarine
1 MILLION POSTS
#daintyjewellery
20,792+ POSTS
#designerjewelry
1 MILLION POSTS
HISTORIC GEMSTONE
Sunrise
Ruby
#goldanddiamonds
41,892+ POSTS
#luxejewelry
44,743+ POSTS
4The world’s most expensive
ruby and most expensive colour
gemstone is the Sunrise Ruby.
The 25.59-carat Burmese ruby
is prized for its saturated ‘pigeon
blood’ red colour, and was named
after a line in a poem by the 13th Century poet, Rumi.
#organicjewellery
19,254+ POSTS
#rubies
278,224+ POSTS
#stackingrings
279,332+ POSTS
#unisexjewelry
134,366+ POSTS
#vintagering
182,531+ POSTS
The Sunrise Ruby, set in a platinum
ring with diamonds: Sotheby’s
It was mounted in a platinum ring, set between two shield-cut
diamonds, by Cartier and auctioned on 12 May 2015 by Sotheby’s.
An anonymous buyer purchased the ring for a record-breaking
$US30.4 million ($AU43.8 million).
Celebrity Style
4 Oscar-nominated Australian actress
Margot Robbie has shown her love for
local brand Lucy Folk’s new collection,
Sun Worship. Folk and head jeweller
Craig Spark were inspired by Aztec and
Mayan sun symbols to create “a sense of
hope and optimism” with the designs.
Image credit:
Stranger Things
Weird, wacky and wonderful
jewellery news from around the world
Striking it lucky
4Two of the largest tanzanites
on record have been unearthed
in northern Tanzania, weighing
9.2kg and 5.1kg. They were sold
to the Tanzanian government by
mine owner Saniniu Laizer for 7.74
billion Tanzanian shillings ($AU4.8
million). Laizer has announced his
intention to build a local school
with the profits, with the employees
who mined the gems to be paid 10
per cent of the sale price.
Dark matter
4Israeli-born, New York-based
jeweller Reut Ringel has created
‘black gold’ by chemically altering
the surface of the metal. Working
with a team of engineers for three
years to develop the waste-free
process, Ringel said, “You get a
much higher-quality colour [than
with black rhodium plating].”
The black gold is prominently
featured in her jewellery line, Reut,
alongside baroque pearls.
Digital Brainwave
Approximately
90 per cent of
18–24 year olds
in Australia
use Snapchat,
checking it an
average of 30
times a day.
4Social media app Snapchat has launched
its Dynamic Product Ads (DPA) initiative,
which allows businesses to automatically
generate ads for products on the platform.
Kathryn Carter, general manager –
Australia and New Zealand of Snapchat’s
parent company Snap, said, “The arrival of
DPA, which is free to access, means that
[businesses] will save time – not only on the
creative process but also on the admin front,
allowing them to easily run measurable
‘always on’ campaigns that will drive
e-commerce sales.”
Jewel Watch
4The Goutte de Ciel, or Drop of Sky,
necklace by Boucheron contains
aerogel, a synthetic porous material
that is one of the lightest known
materials in the world.
Icy smile
4Not content with a set of
‘pearly whites’, US rapper Gucci
Mane has upgraded his porcelain
tooth veneers with $US250,000
diamond studs. The celebrity has
previously referred to himself
as the ‘King of Jewellery’,
with a collection that includes
an $US80,000 ice cream cone
pendant, a $US500,000 pinky ring,
and a custom-made $US250,000
diamond-and-rose gold
charm bracelet.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
Published by Befindan Media Pty Ltd
Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | info@jewellermagazine.com
Publisher & Managing Editor Angela Han angela.han@jewellermagazine.com • Assistant Editor Arabella Roden arabella.roden@jewellermagazine.com
Advertising Toli Podolak toli.podolak@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com • Subscriptions info@jewellermagazine.com
Copyright All material appearing in Jeweller is subject to copyright. Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher. Befindan Media Pty Ltd
strives to report accurately and fairly and it is our policy to correct significant errors of fact and misleading statements in the next available issue. All statements made, although based on information
believed to be reliable and accurate at the time, cannot be guaranteed and no fault or liability can be accepted for error or omission. Any comment relating to subjective opinions should be addressed
to the editor. Advertising The publisher reserves the right to omit or alter any advertisement to comply with Australian law and the advertiser agrees to indemnify the publisher for all damages or
liabilities arising from the published material.

COVID-19 Update
8%
average increase in
spending in all states and
territories except NT in
the week ending 4 July *
* NAB Group Economics, ‘Data Insights’ 9 July 2020
19 August
scheduled end of
Victoria’s second
Stage 3 lockdown
21 points
rise in business confidence in the
latest NAB Business Survey – the
biggest monthly rebound since 1986 –
driven by the mining and retail sectors
* NAB Business Survey, 24–30 June 2020
The Australian Bankers’
Association has announced
customers will be able to
extend six-month deferrals on
mortgages and business loans
for another four months *
* ‘The Age’, 8 July 2020
PAUL GUERRA
CEO, VICTORIAN CHAMBER
OF COMMERCE & INDUSTRY
“Businesses in metropolitan
areas that have only just
reopened and started to trade
again will now be forced to either
close or return to the reduced
operations they had in place
before restrictions were eased.
Many of these businesses were
already desperate and this will be
a tipping point for them.”
KATE CARNELL
AUSTRALIAN SMALL
BUSINESS & FAMILY
ENTERPRISE OMBUDSMAN
“There’s never been a tougher
time to be in business... As small
business owners work around
the clock to get back on their
feet, they may not realise the
toll it’s taking on their mental
health. Over the coming weeks,
it’s important to take time to be
kind to yourself – your business
depends on you being healthy.”
ALAN OSTER
GROUP CHIEF ECONOMIST,
NAB
“Overall, there has been a very
large and fast rebound in the
business survey over the past two
months, but keeping perspective
over just how large the hit to both
activity and confidence is very
important... It is likely that the
business sector will [still] require
ongoing support.”
84%
of retailers are
operating with COVID-19
modifications of enforced
physical distancing and
enhanced hygiene *
* Australian Bureau of Statistics COVID-19
Survey, June 2020
$534 million
new funding package for
Victorian businesses amid
the second lockdown,
including $20 million for
small businesses in the
Melbourne CBD
30%
of businesses
reported revenue
had decreased by half or
more compared with 2019
* Australian Bureau of Statistics COVID-19 Survey,
June 2020
My Business Health
CIBJO
Rapaport
My Business
Health was
developed with
Beyond Blue,
EveryMind and
Fortitude. You can
access the portal
here.
4The Australian Small
Business & Family Enterprise
Ombudsman has launched a
new service for small business
owners affected by COVID-19.
My Business Health collates
resources to assist in
overcoming business and
mental health challenges
that have arisen as a result
of the pandemic. Cash flow,
staff management, health and
safety, and personal wellbeing
are all included.
Sarah Ho, a
London jeweller
who has
successfully
leveraged social
media to build her
business, will
also take part.
4CIBJO, the world jewellery
confederation, is continuing
its webinar series, ‘Jewellery
Industry Voices’ throughout
July on Tuesdays and
Thursdays at 9am New York
time.
The 16 July edition, ‘Social
Media Marketing: Jewellery’s
Brave New World’ will
feature insights from
digital growth specialists
including Ben Smithee and
Preeta Agarwal.
Krawitz will
explore diamond
supply, demand,
and prices, and
implications for
the market for
the 2020 holiday
season.
4Senior Rapaport analyst
Avi Krawitz will host
the latest edition of the
publication’s quarterly
diamond industry webinar,
‘Can the Indsutry Deal
(Again) with COVID-19?’ on
Wednesday 22 and Thursday
23 July.
It will include analysis of the
diamond market in the first
six months of 2020, as well
as potential opportunities in
the second half of the year.
10 | July 2020

Let’s Talk
It’s always important to talk, but right now – in the middle
of a worldwide economic crisis – it’s more important than
ever to talk and work together.
As we emerge from COVID-19 we want to ensure Duraflex Group
is listening and adapting to your needs as a true business partner.
Duraflex Group is here to support you during this recovery
period, and to help you succeed in 2020 and beyond. We are
open to discussing anything you need to assist your business
during this challenging time.
Phil Edwards
MANAGING DIRECTOR, DGA
We are here to listen and provide support for your business.
Duraflex Group is here to help you succeed.
For more details please call (02) 9417 0177 and talk to your Sales Executive to discuss.

With the recent announcements of
government restrictions starting to be
rolled back, jewellers now have the
opportunity to get customers back
into the store.
Effectively communicate the
changes that have taken
place without spending
all their time on the phone.
Do you do custom rings?
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News
NSW government approves Jewellery Fair to proceed in Sydney
week time-frame reduced as control is regained.
“This is reaffirmed in the position of the NSW
Premier regarding the borders, noting as soon as
there is a drop in cases and stabilisation, she will
review opening the borders,” he said.
Fitz-Roy added: “Every other state is up and trading.
We are not relying on one state – [the 2020 IJWF] is
a national event. The end of that six-week lockdown
is still a full month before the show.
“The Prime Minister originally said Australia would
be locking down until September and within a
couple of months, we were able to relax rules in
various states.
The International Jewellery & Watch Fair has been cleared by NSW authorities to proceed at the ICC Sydney.
As COVID-19 restrictions continue to ease, the NSW
state government has approved the International
Jewellery & Watch Fair (IJWF) to proceed at the ICC
Sydney exhibition centre on 12–14 September.
The encouraging news was confirmed by the show’s
organiser Expertise Events and follows similar
approvals for fairs in Queensland, including the Gold
Coast Gift & Lifestyle show, which is scheduled to
take place on 26–28 September.
The Brisbane Convention & Exhibition Centre has
also re-opened and received approval to host events
from Queensland Health.
Gary Fitz-Roy, managing director Expertise Events,
told Jeweller, “At this stage the September shows
are all full steam ahead.
“All the feedback and encouragement we’ve had
over the past few weeks has been around the
industry’s need to reconnect.”
Addressing the new six-week lockdown in
Melbourne – which is scheduled to end on 19
August – as well as the temporary closure of the
Victorian border with NSW, Fitz-Roy was optimistic:
“We recognise the Victorian situation and equally
believe the actions in place will mean the best way
to resume business safely.
“At this stage the September shows
are full steam ahead. All the feedback
and encouragement we’ve had over the
past few weeks has been around the
industry’s need to reconnect”
– Gary Fitz-Roy, Expertise Events
“It’s clear all State and Federal Governments
understand the need to open business up as
quickly as possible. Given the significant economic
pressure, it’s likely that we may see the Victorian six
“My understanding is by the actions that have now
been taken, there is more certainty that the borders
will be open sooner and that will mean that the
IJWF can be a national fair, in which case we look
forward to welcoming our Victorian retailers.”
There will also be further opportunities for
Queensland jewellery suppliers following the
IJWF, with a dedicated pavilion called Jewellery
Connect to be established at the Gold Coast Gift &
Lifestyle fair.
“It’s a special section of 12 stands dedicated to the
jewellery sector,” Fitz-Roy explained.
“Many manufacturers and distributors have had to
let their sales reps go over the COVID-19 period,
while others have not been able to see retailers in
months.
“So this will be a cost-effective solution to meet the
Queensland market, and hopefully be introduced
tonew clients and expand their base because they
will be part of the gift fair.”
CONTINUED ON PAGE 20
Police drop more than
400 charges against
gold dealer
Alejandro Mendieta Blanco (centre, pictured in 2017)
has pleaded guilty to a single charge.
Colombian-born gold dealer Alejandro ‘Alex’
Mendieta Blanco, 34, pleaded guilty to a single
count of receiving stolen goods during a videolink
appearance at the County Court of Victoria late
last month, after police dropped 449 charges
against him.
As previously reported by Jeweller, Mendieta
Blanco, his brother Julio Mendieta Blanco, 37,
and their associate Chey Tenenboim, 39, were
arrested in October 2017 following a spate of
devastating armed robberies at Melbourne
jewellery stores, allegedly committed by gangs of
masked youths.
The Victoria Police Gangs Crime Squad raided
the Collins Street premises of Mendieta Blanco’s
businesses, Sell Your Gold and Diamonds On
Sale.
They seized stolen watches, rings, bracelets, and
other gold and silver jewellery reportedly valued
at $250,000.
At a 2019 hearing, police admitted to
encountering surveillance difficulties
during the original investigation of the
three men, including confusion over
the location of the businesses and
malfunctioning recording devices.
The Mendieta Blanco brothers and Tenenboim
initially faced 450 charges each, including
handling stolen goods, recklessly possessing
stolen goods and knowingly possessing stolen
goods; The Age reports that all three have
pleaded guilty to single charges. Another hearing
is set for later in July.
July 2020 | 13

What You
Need When
You Need It
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to provide fast service and
enduring support to jewellers
across the world.
As you open your doors once
again, know that Stuller is
here to help — with services,
custom orders, and in-stock
essentials you need.
Stuller.com
+3493-754-7774

New buying group reaches membership goal
Independent Jewellers Collective has achieved its goal of more than 40 retailer members.
Independent Jewellers Collective (IJC), which was
formed in January 2020, has surpassed its initial
goal of 40 retailer members, securing 44 as of 1
July.
Josh Zarb, CEO IJC, told Jeweller that the group
still had more than 100 expressions of interest
pending, and that the number of member stores
was expected to increase in the coming weeks.
“We’ve been fortunate in that we’ve had expressions
of interest evenly spread throughout the whole
country, [and] we have members who have joined
us from basically all states and territories so far,”
Zarb said.
While the timing of the launch was complicated
by COVID-19, the pandemic forced IJC to adapt its
processes, particularly in communication.
“The big challenge was the isolation as I would have
ordinarily had face-to-face meetings, but I became
a good friend of Zoom. Now I don’t know how I
would live without it!” Zarb said.
“COVID-19 allowed us to take a step back; it allowed
us to really refine what we were doing with our
resources. We spent the time still assisting retailers
– we helped members with marketing, we turned
on all of our communications platforms and put
together private social media groups – and it made
for the perfect opportunity now to hit the ground
running above our targeted number.”
IJC has received positive feedback from its first
44 members, with its technological assets and
“community of like-minded people” impressing
retailers during the lockdown period.
“Everyone has been very surprised with how many
resources we’ve got behind us in such a short
amount of time,” Zarb said.
“Members were presented with our entire scope of
assistance and our network of people; it’s not just
our staff, I’ve got an amazing network of third-party
resources to help our retailers, which were built
through my industry relationships over more than
20 years.”
He added, “The group was always set up to be a
smaller group [of] really good quality retailers and
supplier partners. And so far, touching a lot of
wood, we’ve ticked every box.
“COVID-19 allowed us to take a
step back; it allowed us to really
refine what we were doing with our
resources... It made for the perfect
opportunity now to hit the ground
running”
– Josh Zarb, Independent Jewellers Collective
“We’ve got nearly all the suppliers on board [that
we set out to work with] and we’re working through
that process.”
When asked about IJC’s supplier relationships,
Zarb said, “I always had a core group of people that
I wanted to work with. At IJC, we do not buy and
hold any stock ourselves so we definitely want to
work and support the local supplier network.
“We have a vision to work with good suppliers
and work with them more one-on-one,
through things like product curation, ranges
within ranges, and working with them on web
and digital strategy. Having a tighter working
relationship with our suppliers, as well as retailers,
is what’s important to us.”
In the near-term, IJC will focus on building more
supplier relationships and finalising trading
terms, rolling out its Christmas marketing plan,
and preparing to launch more digital features and
support for retailers, including custom design.

News
Buying group to offer ‘virtual’ Antwerp diamond trip for members
“It’s the same as if they were actually going [to
Antwerp], in terms of the diamond selection process
– they can put diamonds on hold with one merchant
and ‘shop around’, as if they were walking down the
street in the diamond district.”
Pocklington added, “We’ve scheduled the videoconferences
at set times on certain days that fit
with the different time zones. In New Zealand and
Australia, it will be between 5pm and 8pm, which
works out as being morning in Antwerp.”
This year’s Nationwide Jewellers Antwerp Buying Trip (group pictured in 2017) has been cancelled, but members
will still have the opportunity to source Antwerp diamonds through a virtual event in September.
With its annual Antwerp diamond buying trip
cancelled due to the COVID-19 pandemic,
Nationwide Jewellers has developed a digitalbased
strategy for members to source highquality
stones from the city’s diamantaires.
For more than 20 years, the buying group has
offered members the opportunity to travel to
Antwerp – one of the world’s largest diamond
trading hubs – to source high-quality stones from
prestigious diamond companies. Approximately
15-30 members, representing 12-18 stores, have
attended each year.
This year’s trip was initially scheduled to take place
from 14–20 March, but was cancelled due to the
spread of the coronavirus.
Colin Pocklington, managing director Nationwide
Jewellers, said, “For many of our members, the
Antwerp marketing program has been a major
factor in growing their diamond businesses. So,
we had to find a way to continue.”
To ensure Nationwide members are still able to
source and sell Antwerp diamonds in 2020, the
group has announced it will offer a ‘virtual buying
trip’ to connect jewellers with diamantaires, as well
as providing marketing materials to promote the
stones and encourage pre-orders.
“From late July through to early September,
members will promote the diamonds through
window displays, social media, their website, and
by talking to customers,” Pocklington explained.
“Then, in early September, they will liaise with the
Antwerp diamond merchants based on the preorders
from customers. [This time] they’ll do that via
email and also video-conferencing with each of the
three diamond companies. They will receive images
and sometimes videos of the stones.
Nationwide members will also be able to access
digital question-and-answer sessions with the
buying group’s diamond expert Cindy Eidukevicius-
Jones, as well as access special price lists.
“We’re expecting to get quite good value because
we’ve had total disruption in the world,” Pocklington
said. “There has been a very tight lockdown in
Belgium, so diamond sales have been low.”
Pocklington said final Antwerp diamond orders
would be confirmed in mid-September before being
securely bulk-shipped to Nationwide and distributed
to members.
“The structure that we have put in place for the
virtual trip will enable many more members to
participate in the promotion,” he explained, adding,
“Those who may not have been able to travel to
Antwerp [in normal circumstances] for family or
staffing reasons will [also] now be able to run the
promotion and satisfy their customers’ orders with
Antwerp diamonds.”
A webinar is available for interested members,
providing more details about the new buying
process, pricing and marketing. The Nationwide
Jewellers members’ Facebook group has also been
updated with information.
New Zealand jewellery
trade show cancelled
The JWNZ has cancelled the upcoming Trade Fair,
scheduled for Auckland this August, due to the
COVID-19 pandemic.
Jewellers & Watchmakers of New Zealand
(JWNZ) has announced its JWNZ Trade Fair has
been cancelled due to the COVID-19 pandemic.
In an email to members, the JWNZ Trade Fair
Committee stated that the fair – which was
scheduled to take place on 30 August at the
Alexandra Park Function Centre in Auckland –
would not proceed due to health restrictions and
border closures.
“There were a number of considerations and
factors involved in the decision, including the
[temporary] closure of the Alexandra Park
Function Centre, the availability of hotel meeting
rooms and accommodation, travel and the closed
border to non-New Zealanders,” the email said.
At the time of publication, New Zealand had 25
active COVID-19 cases and was at Alert Level 1,
which the New Zealand government’s Unite For
Recovery website describes as “everyone can
return without restriction to work, school, sports
and domestic travel, and you can get together
with as many people as you want”.
However, border restrictions were still in place
for non-New Zealand citizens and residents, with
few exceptions.
The news follows the cancellation or
postponement of several other local and
international jewellery industry events, including
Baselworld, the Hong Kong International
Jewellery Show, and JCK Las Vegas.
However, at the time of publication, the
International Jewellery & Watch Fair was
still scheduled to proceed in Sydney on 12–14
September. The next JWNZ Trade Fair will take
place on 29 August 2021.
July 2020 | 17

News
In Brief
LVMH reiterates commitment to Tiffany & Co.
takeover as revenues decline
Swarovski announces
tree-planting initiative
4 Crystal company Swarovski has
announced a plan to mark its 125th
anniversary by ‘reforesting’ a stretch of
land in Australia’s Yarra Yarra biodiversity
corridor. Swarovski has pledged to plant 125
trees per day in the area for the remainder
of 2020, with a total of 24,000 trees to be
planted. The reforestation will capture
carbon from the atmosphere and create a
safe habitat for native animals.
Chinese company
accused of gold fraud
4Kingold, a leading producer of 24-carat
gold jewellery in China, has reportedly
been exposed in a large-scale gold fraud.
The company had secured loans of
$US2.8 billion against 83 tonnes of gold
bullion; however, routine testing found
the bars were made from a copper alloy.
The company’s shares fell 40 per cent at
the news, and Kingold has been removed
from the Shanghai Gold Exchange.
Cullinan Mine owner
up for sale
4Petra Diamonds, the publicly-listed
company which owns and operates
the historic Cullinan Mine – where the
world’s largest diamond was found –
as well as three other diamond mines
in southern Africa, is searching for a
buyer following a strategic review of its
finances. The company has
$US650 million in debt due for
repayment in 2022.
Indian jewellery
show postponed
4The India International Jewellery
Show (IIJS) Premiere – India’s largest
jewellery trade fair – has been postponed
from 6–10 August 2020 to January 2021
due to COVID-19, the Gem & Jewellery
Export Promotion Council (GJEPC) has
announced. Shailesh Sangani, convener
– national exhibition GJEPC, said that IIJS
Premiere would be the “first [jewellery]
show of the calendar year” and replace
its sister show IIJS Signature.
Despite speculation the deal could fall through, an LVMH executive has confirmed the French luxury
conglomerate will proceed with its acquisition of Tiffany & Co.
French luxury conglomerate Moët Hennessy
Louis Vuitton SE (LVMH) has indicated it intends
to proceed with its takeover of Tiffany & Co.,
despite declining sales due to COVID-19 and
widespread unrest in the US.
Media reports that the $US16.2 billion deal
could be altered or abandoned surfaced in early
June, as Tiffany & Co.’s international sales
declined by 45 per cent in the first quarter of
2020.
Fuelling rumours, LVMH held an executive
meeting to discuss the terms of the acquisition
– which is the largest in its history – on 3 June.
However, speaking at the LVMH annual general
meeting – conducted as an online presentation
– on 30 June, Antonio Belloni, group managing
director LVMH, said, “We believe that Tiffany
is one of the most iconic jewellery brands.
As such, it fully has its place in the LVMH
portfolio.”
“We believe that Tiffany is one of
the most iconic jewellery brands.
As such, it fully has its place in the
LVMH portfolio”
– Antonio Belloni, LVMH
The jewellery company’s most recent financial
report confirmed it recorded a loss of $US65
million ($AU94.7 million) for the three-month
period to 30 April. Declines were concentrated
in the US and Asia-Pacific regions, with
Mainland China recording an 85 per cent fall in
sales in February.
The result was attributed to the COVID-19
pandemic, with approximately 70 per cent of its
324 international stores closed as at 30 April.
By 29 May, 80 per cent of international stores
had reopened; however, as at 8 June, only
55 per cent of its US stores – Tiffany & Co.’s
largest market – had fully or partially reopened.
Yet Alessandro Bogliolo, CEO Tiffany & Co., said
recent sales figures in China indicated that a
“robust recovery is underway”. He added that
international e-commerce sales had increased
23 per cent for the quarter and represented 15
per cent of Tiffany & Co.’s total sales in 2020,
compared with 6 per cent in 2019, 2018 and
2017.
While Bogliolo remained optimistic, the
company confirmed it had amended its debt
agreements in light of the financial pressure
caused by the pandemic, drawing down
$US500 million from its revolving credit facility.
Tiffany & Co.’s total debt is now $US1.5 billion,
a 16 per cent increase from 2019.
The debt restructuring further fuelled
speculation LVMH could be preparing to alter
the terms of its acquisition. However, Mark
Erceg, chief financial officer Tiffany & Co.,
offered reassurance to shareholders, noting
that the debt amendments were permitted
under Tiffany & Co.’s Merger Agreement with
LVMH.
“Tiffany has an investment-grade balance
sheet, has ample cash on hand and was in
compliance with all debt covenants as of
April 30, 2020. Nonetheless, we still took the
decision (as have many other companies)
to amend certain of our debt agreements in
order to create additional financial covenant
headroom given these unprecedented times,”
he explained.
CONTINUED ON PAGE 20
18 | July 2020

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LUXURY pearl AND opal JEWELLERY
LUXURY pearl AND opal JEWELLERY
LUXURY pearl AND opal JEWELLERY
NSW government approves Jewellery Fair to proceed in Sydney
CONTINUED FROM PAGE 13
“It’s about opening the door – and by-the-by, they may have a few days’
holiday on the Gold Coast too!” he added.
For both the Queensland and Sydney shows, Fitz-Roy confirmed that
detailed safety plans were being developed.“It’s about common sense and
how you approach it, and those plans are in the works now. The idea is
that none of these safety measures will have a large personal impact on
our visitors – we want to be as normal as we can be,” he explained.
One of the initiatives being introduced was pre-registration and selfprinting
of identification badges. While Expertise Events will still issue
badge holders and lanyards to visitors, they will not be recycled this year.
“Where in the past we’ve recycled identity badges or printed them, we’ll
now encourage everyone to do that from their own office or home. And
that means it’s less of a contact situation. Simple measures are the way
to go because they are the safest and the easiest for us to implement,”
Fitz-Roy explained.
Expertise Events is set to announce final confirmation of the IJWF at the
end of this month; it has announced a special booking offer of a $100
deposit, which will be fully refunded if it is forced to cancel the show. The
Expertise Mate discount package is also available to exhibitors.
LVMH reiterates commitment to Tiffany & Co. takeover
CONTINUED FROM PAGE 18
Upon the release of its financial results, Tiffany shares fell more than 10
per cent. They were trading at $US121.94 at the time of publication.
e are in a situation we never thought we
ould be in. COVID-19 has turned our lives
ide down but there’s always a silver lining
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would would be be in. in. COVID-19 has turned our our lives lives
upside We upside are down in down a situation but
but there’s we always never a thought silver
a silver
lining we lining
to would to this
this be crisis.
crisis. in. COVID-19 The industry
The industry has and
and turned our community
our our community lives
another. coming together We are to connected encourage and in support isolation. one
coming pside down together but there’s to encourage always a and silver support lining
another. We are connected in isolation. one
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another.
crisis. The
We
industry
are connected
and our
in
community
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oming We will together see each to other encourage after this and all support has passed. one
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his crisis. The industry and our community
ing together to encourage and support one
will see each other after this all has passed.
Stay Stay strong and safe!
e will see each other after this all has passed.
Stay strong and safe!
www.ikecho.com.au | enquiries@ikecho.com.au
Tel: (02) 9266 0636 | Fax: (02) 9266 0969
www.ikecho.com.au | enquiries@ikecho.com.au
Stay strong and safe!
Tel: www.ikecho.com.au (02) 9266 0636 | | enquiries@ikecho.com.au
Fax: (02) 9266 0969
Tel: (02) 9266 0636 | Fax: (02) 9266 0969
www.ikecho.com.au | enquiries@ikecho.com.au
LVMH has indicated it will not buy Tiffany & Co. shares on the open
market and will maintain its offer of $US135 per share, which was
accepted by Tiffany & Co. shareholders in February this year.
In the report, Bogliolo stated that the LVMH deal – which was initially
expected to close in July 2020 – will proceed, saying, “I am confident that
Tiffany’s best days remain ahead of us and I am excited we will be taking
that journey with LVMH by our side.”
He also addressed delays in international regulatory clearance,
confirming that authorities in both Russia and Mexico had approved the
acquisition of Tiffany’s subsidiaries in those territories. South Korea’s
Korea Fair Trade Commission cleared the takeover to proceed on 12 June.
As previously reported, Australia’s Foreign Investment ReviewBoard
(FIRB) was initially expected to approve the takeover in April, however due
to changes in the regulatory framework, its review deadline was extended.
On 6 July, Tiffany & Co. informed the US Securities & Exchange
Commission that FIRB had cleared the acquisition to proceed; however,
the company’s filing noted that “additional regulatory clearances” and
“other customary closing conditions” were yet to be finalised.

Peter W Beck has been passionately committed to the
jewellery industry for 45 years.
Please be assured that we are still here and we will continue to provide
you with the world class products and services that you rely on.
We stand beside you through this tough time and beyond.
OUR TEAM IS HERE TO SUPPORT YOU:
Toll Free 1800 888 585 | Email customerservice@pwbeck.com.au
14 Duncan Court, Ottoway Park, SA, 5013 Australia
Toll Free 1800 888 585 | Email customerservice@pwbeck.com.au | Web www.pwbeck.com.au

Defendant in Melbourne Gold Company
robbery granted bail
Magistrate Ross Maxted has granted bail to Karl Kachami, a defendant in the
$3.9 million Melbourne Gold Company robbery.
Karl Kachami, one of the defendants
in the $3.9 million robbery of Collins
Street gold dealer Melbourne Gold
Company (MGC), has been granted
bail, while fellow defendant Daniel
Ede remains in custody.
At a bail hearing on 15 June,
Kachami’s legal representative,
Philip Dunn QC, described the 27
April heist as a “comedy of errors”
and said that his client made a “very
silly decision” due to the financial
and psychological pressure of the
COVID-19 pandemic.
“The planning appeared
to be sophisticated,
including the secretion of
cash and the bullion in a
very remote location”
– Ross Maxted, magistrate
He also asserted that Kachami, 48,
had fully cooperated with police by
leading them to a rural property
in Gippsland, where a significant
portion of the stolen material was
buried.
In addition, Melbourne Magistrates’
Court heard that Kachami returned
more than $340,000 which had been
stashed at his investment property
in the Melbourne suburb of Fitzroy.
Police allege Kachami planned
the robbery with Ede, 37, who
was an employee of MGC. During
the course of the heist, Kachami
appeared to hold Ede at gunpoint as
he emptied the business’ safes of
gold bullion, jewellery, and cash.
However, CCTV footage revealed
that the weapon was unloaded, and
police said that Ede appeared to be
guiding Kachami using his eyes and
hand movements.
Police also alleged that Ede was
seen in Gippsland in the days
following the robbery.
Dunn argued that Kachami should
be released in order to undergo
treatment for diabetes and to care
for his three young children.
While agreeing to release Kachami,
magistrate Ross Maxted rejected the
“comedy of errors” characterisation,
with The Age quoting him as
saying, “The planning appeared
to be sophisticated, including the
secretion of cash and the bullion in a
very remote location which was only
known to both of them, but which
could only be accessed on locked
private property.”
Maxted reportedly said that Kachami
was “highly intelligent” and “a man
prepared to take considerable risks
and involve, potentially, others in
them.”
Kachami was ordered to surrender
his passport, remain in Victoria,
and contact police daily. His family
provided a $550,000 surety.
Meanwhile, Maxted denied bail to
Ede on the grounds that he may
seek to recover more than $330,000
in stolen cash that remains missing.
Ede was arrested on 12 May, but
has consistently denied involvement
in the robbery. He has been charged
with perjury relating to statements
made to police after the heist’.
A big socially distanced hug from all
the Coeur de Lion team in Australia
and Germany!
Timesupply
jewellery + watches
p +61 (0)8 8221 5580
sales@timesupply.com.au
exclusive distributor AU & NZ

10 Years Ago
Time Machine: July 2010
A snapshot of the industry events making headlines this time 10 years ago in Jeweller.
Historic Headlines
4 CIBJO updates precious metal rules
4 Worldwide pearl alert over mislabelling
4 Nationwide conference breaks records
4 ATO helps jewellers rate their performance
4 GAA plans major changes
A lesson for jewellers
STILL RELEVANT 10 YEARS ON
Getting Emotional:
Charm bracelets, particularly ones
where the charms are easily replaced,
can also grow with the customer: the
little girl who got her charm bracelet
while she was still at school can
alter a couple of beads and turn it
into a subtle piece that she can later
wear in the workplace.
READ ALL HEADLINES IN FULL ON
JEWELLERMAGAZINE.COM
A lengthy legal dispute involving a Victorian
jeweller falsely accused of switching a diamond
in a customer’s ring during a repair has been
dismissed by the Victorian Civil and Administrative
Tribunal (VCAT) after almost five years.
The diamond was first assessed – unmounted – in
1997. In 2005, the diamond ring was taken to the
jeweller for a repair. Upon its return, the customer
accused the jeweller of switching the diamond.
The customer then had valuations performed by
different graders, both qualified and unqualified,
which varied greatly as the stone was still mounted
in the ring. A final assessment of the stone, unset
from the ring, showed the diamond to be the
exact diameter and weight as the original 1997
record, leading VCAT to dismiss the claim.
The case demonstrates the importance of
keeping accurate records, unmounting and
weighing stones in front of customers, and
sending diamonds for valuation before and
after repairs.
Michael Hill’s new stores
Michael Hill may have closed jewellery stores in
the US last week but the company is set to open
15 new stores in Australia and New Zealand.
The company’s chief executive officer Mike
Parsell told Jeweller that although he was not
happy that the company was forced to close the
eight US stores, they could be considered part of
the cost to test the US market to establish if the
Michael Hill business model could work there.
Parsell added that he was confident in the nine
remaining stores and stressed that the US
closures would not impact the company’s core
markets of Australia and New Zealand.
July 2010
ON THE COVER Bulova
Editors’ Desk
4Unconventional: “Are recessions
necessarily bad? I’m not sure they
are. Recessions are an essential part
of capitalism – natural by-products
of the boom and bust cycles seen in
open markets.
They ultimately reinforce and
strengthen an economy over the long
haul, much in the same way that a tree
grows stronger after a good pruning.”
Soapbox
4So-Called “Sales” Skills: “Stores
have become like supermarkets
– albeit very glittery and sparkly
supermarkets – where the obejctive
is to ‘turn around’ the sale in
minimum time and get the money
in the till ‘next’.
More and more, retailers expect
products to sell themselves and,
unless the customer comes in
knowing pretty much what they want,
the retailer almost feels imposed to
have to spend some time with them.”
– John Papaioannou, managing director
Time Essentials
Cost-cutting Aussies still
love jewellery
Sales of jewellery, watches, and clocks rose
10.3 per cent during the first three months
of 2010, according to the latest edition of
CommSec’s Economic Insights report.
Spending in various other indsutries decreased
during the same period – tools and equipment
was down 6.7 per cent, while air travel (4.4),
gambling (2.5) and cigarettes (0.8) all suffered.
Even essential goods and services were down
against jewellery. The report could not offer any
explanation of the large increase, writing only,
“Interstingly, Aussie consumers have been
lashing out on some ‘little luxuries’.”
Tag’s $6 million dilemma
Tag Heuer management has gone into damage
control, attempting to plug a $6 million hole
created after Angus & Coote (A&C) “sacked”
the watchmaker following a controversial
decision to close all Melbourne CBD stockist
accounts except one.
The strategy coincided with the opening of the
Tag flagship store on Collins St, and directly
affected The Hour Glass, Saleras, and Monards.
It is understood that Tag was caught by
surprise when A&C decided to remove the
brand from all its Australian and New Zealand
stores. More surprises followed when A&C
embarked on a national advertising campaign
offering discounts – as high as 40 per cent
– on Tag watches.
24 | July 2020

From our inventory, to yours...
BECOME AN OFFICIAL
STOCKIST
Due to an increase in enquiries from retail customers,
we are upgrading the online presence of our stockist
function on our website. It’s another way O’Neils Affiliated
are trying to keep the Australian Jewellery industry
vibrant and busy in the face of overseas and online sales.
Please visit www.oagems.com
or call our friendly team on 03 9654 5200
for more information.

While the Coronavirus has had a devastating impact
on the industry, we have been able to focus on
strengthening our internal infrastructure to provide you
with better service and a greater business advantage.
B 2 B B U S I N E S S P O R TA L
You can check new arrivals, availability of
stock, delivery status and place orders in
one easy place.
O N L I N E I NTE G R AT I O N
Upload hundreds of products to your
website with one click. No more manually
entered items.
D R O P S HIP P I N G
Double your stock holding without any of
the costs of carrying the stock. We pick, we
pack and we deliver for you.
V I R T U A L M E E T I N G S
Virtual meetings allow us to meet you safely
wih more samples on hand. Plus, our sales
staff don’t take up space in your store.
B R A N D U P A T E S
MASER ATI
G EO RG INI
OUI & M E
M ORELL ATO
MAU RICE L ACROIX
This January we
launched the Maserati
watch range. This
premium Italian Lifestyle
Collection is the epitome
of quality and style.
Since taking over
Georgini in April last
year, Georgini has
grown by an incredible
67% in the quarter
leading up to Christmas.
We are set to launch
popular French brand
‘Oui & Me’, a well-priced,
feminine watche brand
with floral and pastel
motifs. Available August.
Next month, we are
relaunching Morellato
Watch Straps, including
the ever popular ‘Easy
Click’ and ‘Green’
Collections.
We re-launched the premium
Swiss brand Maurice Lacroix
into Australia and New
Zealand in late 2019. Since
this time, the new Aikon
Sports Automatics have
proven to be best sellers.
26 | July 2020
WWW.W E S T E N D C O LLE C T I O N . C O M . A U

INSIDE
My Store
Erik Runyan Jewelers
VANCOUVER, WASHINGTON, USA with Erik Runyan, owner • SPACE COMPLETED 2017
4Who is the target market?
Our previous store was a proper 1980s fine
jewellery store: brass track lights, oak cases, and
mirrors everywhere! The staff and myself wore
suits and dresses.
As I looked to the future, the culture was getting
more casual and Millennials were the group leading
the way. Our new store is a much more relaxed
environment. Business is mostly done at a desk with
coffee or beer being served. Short of my daughter’s
wedding, I have not worn a suit in three years!
4Which features encourage sales?
Connecting the dots between store ambience,
consumer behaviour, and closing sales, the highest
sales volume in the store lay in the hands of our
“silent salesperson,” the Joseph Asher Diamond
Selling Machine. This interactive showcase
attracts, educates, and closes diamond sales by
overcoming the hurdles that hinder guys from
buying gifts of fine jewellery.
Shopping for jewellery has become a much
more intimate experience. Many of our guests
make appointments and custom design is often
incorporated into the process. Loose diamonds,
bridal, custom design and estate jewellery are the
drivers of our small, independent store.
4What is the store design’s ‘wow factor’?
We have a very classic, vintage feel. This is provided
by the turn-of-the-century cases and surrounding
details. The store’s century-old roots provide
volumes of novelties to admire. With the current and
fourth-generation family owner being a licensed
sea captain, a nautical feel is also undeniable. The
beautiful wood canoe chandelier sets the tone for all
things sea-worthy!
July 2020 | 27

Ready
Get
Polish your gemstone
knowledge online
From lapis lazuli and coloured diamonds to
synthetic moissanite and zebra rock, brush up
on your gemstone knowledge in the downtime.
The GAA has over 14 years of gemmology
articles freely available to read online
on Jewellermagazine.com.
Learn About Gemstones with
the GAA on Jewellermagazine.com
ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY
Passionately educating the industry, gem enthusiasts
and consumers about gemstones
learn@gem.org.au | 1300 436 338 | www.gem.org.au

REVIEW
Gems
The green fire of Peridot
L to R: Peridot rough; peridot and diamond collier, Sotheby’s;
Dreamcatcher peridot earrings, Temple St Clair
Forming deep within the Earth’s mantle,
peridot is no stranger to heat and pressure.
This green mineral may also be of extraterrestrial
origin, transported within
meteorites from the depths of the universe,
impacting the Earth in rare, cataclysmic
events.
Peridot is a member of the olivine group of
minerals that form an isomorphous series
of magnesium-iron silicates. The two endmembers
of the series are the magnesiumrich
forsterite and the iron-rich fayalite.
Peridot is the gem-quality variety of olivine
and its colour ranges from green, greenishyellow,
yellowish-green, greenish-brown
and brown, depending on its chemical
composition.
Pure green gemstones are rare and most
peridot exhibits a yellowish undertone.
The intensity of peridot’s green hue is
determined by the varying amount of iron in
its composition; iron influences a yellowbrown
tone within the gemstone while
traces of chromium and nickel – replacing
iron and magnesium – are said to give
peridot a bright-green colour.
Pallasite meteorites have expanded the
horizons of the study of peridot to the far
reaches of the galaxy.
Pallasites are one kind of stony-iron
meteorite that contain abundant crystalline
olivine, sometimes of gem-quality peridot.
“Mining is said to have begun around 300bc,
indicating that Cleopatra’s famous emerald
collection may in fact have been peridot.”
The crystals are generally small and, due
to the high iron content of the surrounding
iron-nickel matrix, are typically yellowybrown
in colour.
Some pallasitic peridot specimens are
higher in carat weight and present an
attractive green colour favourable for
faceted gemstones.
Pallasitic peridot usually contains
characteristic inclusions that separate it
from terrestrial peridot but the origin of
clean gemstones may require chemical
analysis.
Affordable and beautiful, peridot can be free
of eye-visible inclusions, particularly those
in smaller calibrated sizes.
Prices rise for gemstones greater than
10mm, particularly those with vivid-green
colour. Although larger gemstones can
present a high clarity, small and black
chromite crystals are characteristic of
Earth-formed peridot as are reflective, discshaped
‘lily-pad’ inclusions.
Gemstones that are lighter and less
intense in colour see a dramatic drop in
value regardless of their size, as do those
that present eye-visible inclusions. The
finest examples of peridot are unearthed
in Myanmar and Pakistan with Arizona and
Peridot
Origin uncertain,
believed to be Anglo-
Norman pedoretes
Colour: Pure green to
yellowish green
Found in: China,
Myanmar, Pakistan,
Tanzania, Vietnam,
United States
Mohs Hardness: 6.5–7
Class: Silicate
Lustre: Vitreous
Formula: Mg 2
SiO 4
China producing more reliable commercial
quantities.
Admired since the dawn of civilisation, early
records indicate the Ancient Egyptians
mined a beautiful green gemstone from the
island in the Red Sea called Topazios.
The island, now known as St John’s Island,
or Zabargad, remains to this day the oldest
and longest-known source of gem-quality
peridot.
Mining is said to have begun around 300BC,
indicating that Cleopatra’s famous emerald
collection may in fact have been peridot!
A gemstone always associated with light,
the Egyptians called peridot the “gem of the
sun”, believing it to protect its owner from
“terrors of the night”.
Fashioned into a variety of shapes and cuts,
faceted gemstones show a doubling of the
back facets – an optical property caused by
high birefringence and a diagnostic feature
of peridot.
Carvings, beads and cabochons are also
not uncommon although these forms don’t
capture peridot’s dispersive nature.
Now the most beautiful samples of peridot
come from the border area between
Pakistan and Afghanistan and the gemstone
is also found in Myanmar, China, the US,
Africa, Australia and Vietnam.
July 2020 | 29

THINK
BIG!
Unmissable Experiences
When TWO shows are better than one
September is timed to deliver the Golden Quarter, retailers
busiest and most profitable time of the year. For the first
time, the Spring Gift & Lifestyle Fair will run next door to
the International Jewellery & Watch Fair this September.
jewelleryfair.com.au
INTERNATIONAL
J E W ELLERY & WATCH FAIR
ICC Sydney Exhibition Centre
Darling Harbour
Organised by
September 12 – 14, 2020 Est. 1990
September 12 – 15, 2020

STATE OF THE INDUSTRY
Chains through the Decade
STATE OF THE
INDUSTRY REPORT
AN IN-DEPTH REPORT OF AUSTRALIA’S JEWELLERY CHAIN STORES OVER A DECADE
RESEARCH FEATURE
CHAIN
REACTIONS
There is little doubt the past 10 years have led to
significant change in the Australian jewellery
landscape – yet analysis of the data by Jeweller
shows a number of surprising trends and stories.
TOPICS
The demise of fashion jewellery chains
Fine jewellery demonstrates unexpected resilience
Mid-sized jewellery chains have mixed results
Some small chains drop off the chain list
IN FOCUS
ZOOMING OUT History Lesson: twists and turns
ZOOMING IN Pandora: past the peak?
HILLS & VALLEYS Key moments for Michael Hill
July 2020 | 31

BACKGROUND
STATE OF THE INDUSTRY
REPORT EXPLAINED
The first detailed analysis of the Australian jewellery industry was
published in 2003. It examined, and measured, the number of
jewellery stores in the major shopping centres in each state and,
interestingly, found that jewellers accounted for a ‘standard’ five per
cent of all specialty stores in major shopping centres.
The research also surveyed the number of jewellery chains and
compared their store count by state with state population data.
In the following years, Jeweller conducted ad hoc research and in
2007 we published a more comprehensive analysis of chain stores.
At the time, there were around 1,000 stores listed, however a need
emerged to refine the research by better defining store types and
product categories.
This process culminated in the 2010 State of the Industry Report,
published in December that year.
The 68-page 2010 report offered a definition of – and differentiation
between – independent jewellery businesses, fashion and fine
jewellery stores, chain stores, brand-only and flagship stores, and
finally jewellery kiosks.
Unsurprisingly, the jewellery industry has continued to evolve to the
extent that, in some ways, it’s a little like going ‘back to the future’;
the industry appears to be evolving full circle, back to its roots.
That is, independent jewellers are increasingly focusing on high-value
items – often custom-made jewellery for specific clients – along with
repairs and remodels.
In part, it’s a crucial move to differentiate from easily purchased,
low-value/low-priced items sold on the internet.
At the same time, a notable change from previous reports is
manufacturers altering their distribution models, becoming de facto
retail operations that compete with independent jewellers.
What began as high-profile watch and jewellery brands establishing
‘Flagship’ stores – purported to assist independent stockists – has,
in some cases, morphed into full-on competition.
As the industry changes in the coming years, there may be a
need to re-evaluate the definitions used in future State of the
Industry Reports.
Jeweller endeavours to maintain definitions where they are
appropriate and relevant to the current trading environment, and
to enable simple comparison with data in previous reports.
32 | July 2020

Chains through the decade | STATE OF THE INDUSTRY
CHAIN REACTIONS
Australian jewellery retailing has undergone significant evolution over the past
decade, but, surprisingly, the changes are very different to what was expected when
Jeweller published its last State of the Industry Report in 2010.
A
decade on from Jeweller’s first State of
the Industry Report, the jewellery retail
industry – mirroring the broader retail
sector – has undergone momentous change. Yet
over the past 10 years, fine jewellery chain stores
have remained relatively resilient, at least in
terms of store numbers.
However, the same cannot be said for the fashion
jewellery category!
There were 21 fine jewellery chain store ‘brands’ in 2010,
operating a total of 977 stores nationally. On a Like-By-Like
basis, by 2020 that number had declined by 118 stores to 859,
representing a 12 per cent reduction in total store count.
That contraction could be considered small when compared
with the performance of other consumer categories.
Some fine jewellery chains – such as Prouds and Michael Hill
– managed to increase overall store numbers, while others
marginally decreased.
Only two ‘names’ entirely disappeared from the list: Blue
Spirit, a lesser-known small franchise, which operated six
stores in 2010, and the high-profile Thomas Jewellers, with
nine stores.
James Thomas founded Thomas Jewellers in 1896 in
Ballarat. After 121 years of operation, the Thomas family
decided to close its iconic Bourke Street Mall store in
Melbourne in October 2017, as well as the Warnambool,
Wagga Wagga, Albury, Shepparton, Bendigo, Ballarat and
Geelong stores.
In contrast, of the seven fashion jewellery chains listed in the
State of the Industry Report (SOIR) 10 years ago, only one
remains – six closed their physical stores.
The proverbial ‘last man standing’, Lovisa, has grown from 35
locations in Australia to 140 over the past decade, following
the liquidation and closure of major competitors and smaller
fashion jewellery chains alike – including its sister chain Diva.
The ‘downfall’ of the six fashion jewellery chains means
that of the 378 stores that were operating in 2010, 343 no
longer exist.
Demise of fashion chains
For the purpose of research and a report, it is necessary
to create definitions in order to accurately measure and
compare results across categories and over time.
Therefore, a ‘chain’ is defined as a group of five or more
BY THE NUMBERS
Chain Insights
In this report, a ‘chain’
is defined as a group of
five or more jewellery
stores trading under
the one (brand) name,
with one ownership
entity – a person or
company –
co-ordinating buying
and marketing
activities across the
group. It could include a
franchise operation.
859
fine jewellery
chain stores
remain open as
at July 2020
343
of 378 fashion
jewellery chain
stores have closed
since 2010
50%
chains in
Australia are
owned and / or
controlled by New
Zealand entities
jewellery stores trading under the one (brand) name, with
one ownership entity – a person or company – co-ordinating
buying and marketing activities across the group. It could
include a franchise operation.
In addition, Jeweller notes that a chain store usually has
central management and standardised business methods
and practices and will purchase product from both local
suppliers and/or import its own product.
In 2020, Lovisa is the largest fashion jewellery chain
operating in Australia. The ASX-listed BB Retail Capital,
founded by retail entrepreneur Brett Blundy, owns it.
TABLE 1: FASHION CHAINS STORE COUNT 2020 VS 2010
Chain 2010 2020 Variance
Diva 176 0 -176
Equip Accessories 104 0 -104
Lovisa 35 140 105
Magnolia Silver 22 0 -22
Butterfly Silver 20 0 -20
Bijoux 11 0 -11
Myka 10 0 -10
TOTAL 378 140 -238
Of the 7 chains in 2010, 6 collapsed and/or closed their physical stores
to move online. Of the 378 fashion jewellery stores in 2010, 343 closed.
Lovisa’s current store count is 140; however, an article
published by Jeweller in May 2014 detailing the closure
of Lovisa’s 176-store sister chain Diva – also owned by
BB Retail Capital – noted that Lovisa had 158 stores
across Australia.
Therefore, even though Lovisa has had an impressive
increase of 105 stores since 2010, it has rationalised
its store count over the past few years by closing at
least 18 outlets.
The demise of Diva is interesting. It was launched in 2003
by husband and wife team Colette and Mark Hayman, and
within two years it had expanded to 83 stores. It was sold
to BB Retail Capital in 2005.
By 2007, a further 72 stores had been opened, bringing
to 131 the total retail outlets in Australia.
Diva operated a further 369 stores overseas, primarily
targeting teenage girls, while Lovisa promoted itself as
being able to “fill the void for high quality, fashion forward
and directional jewellery.”
In 2010, and after a three-year absence from the industry
July 2020 | 33

STATE OF THE INDUSTRY | Chains through the decade
2020
STORE COUNT
Top 5
Largest Fine
Jewellery
Chains
due to a non-compete clause in the sale of
Diva to BB Retail Capital, Colette Hayman
launched a new fashion jewellery and
accessories store, eponymously named
Colette Accessories.
The first Colette Accessories store opened
in Sydney’s CBD and, at the time, Hayman
boasted that they would have 120 stores
within three years. By 2014, the store count
had reached 102 across Australia, with a
further 18 overseas.
In contrast, of the seven fashion
jewellery chains listed in the State
of the Industry Report (SOIR) 10
years ago, only one remains – six
closed their physical stores...
The ‘downfall’ of the six fashion
jewellery chains means that of the
378 stores that were operating in
2010, 343 no longer exist.
However in February, the company – which
had been renamed Colette By Colette
Hayman – was placed into administration.
At the time of publication, its 99
Australian stores, along with 41 New
Zealand stores, remained in the hands
of Deloitte Restructuring Services as the
administrators attempted to re-capitalise
or sell the business.
Diva and Colette are not the only large
fashion jewellery chains to have found
the going tough over the past decade.
Other closures
Butterfly Silver, a fashion jewellery
business established in 2002, operated 20
stores in 2010. It collapsed in March 2018
closing all locations. However, Hoskings
subsequently acquired the e-commerce
business butterflysilver.com.au.
Equip Accessories, which featured in the
2010 SOIR with 104 stores, was liquidated
in 2017. It had expanded to 110 Australian
stores, all of which were closed.
The other three fashion chains that didn’t
survive the decade with bricks and mortar
locations were Magnolia Silver, Bijoux,
and Myka.
In total, and along with Butterfly Silver,
they represented 63 store closures.
Magnolia Silver and Bijoux now operate
as online-only businesses.
On the other hand, Silvershop, which
was founded in 1999, has now expanded
to seven stores in Queensland making it
a small chain.
This collapse of 343 fashion jewellery
stores, along with Colette’s 99 stores
currently being in the hands of
administrators, leads to the question:
why has the retail landscape changed so
drastically over the past decade for the
lower end of the market?
The answer likely lies in more strenuous
competition from online incumbents
and new entrants, given that low-margin,
high-volume fashion jewellery is more
suited to internet sales than higher-value,
low-volume fine jewellery.
Further, and more importantly, the
44 additional
stores since 2010
12 additional
stores since 2010
11 fewer stores
since 2010
43 fewer stores
since 2010
19 fewer stores
since 2010
TABLE 2: FINE JEWELLERY CHAINS’
STORE COUNT 2020 VS 2010
Chain 2010 2020 Variance
Prouds 217 261 44
Michael Hill 144 156 12
Angus & Coote 133 122 -11
Goldmark 119 76 -43
Wallace Bishop 57 38 -19
Zamels 100 37 -63
Shiels 31 36 5
Mazzucchelli's 25 30 5
Bevilles 29 24 -5
Salera’s 21 20 -1
Hoskings 17 16 -1
Gregory 16 15 -1
Graham's 7 6 -1
Regency 6 6 0
Anthonys 8 5 -3
Hardy Brothers 7 5 -2
Pascoe* 9 3 -6
Goldsmith* 9 2 -7
Dia Oro* 7 1 -6
Blue Spirit # 6 0 -6
Thomas # 9 0 -9
TOTAL 977 859 -118
On a like-for-like basis there has been 12% reduction
in store numbers the past 10 years
* No longer chain. # Stores closed
CHART 1: CHAIN DOMINANCE BETWEEN 2003 - 2020
2003
2003
2007
2007
2010
2010
2020
2020
0 250 500 750 1000 1250
0 250 500 750 1000 125
34 | July 2020

Chains through the decade | STATE OF THE INDUSTRY
2020
STORE COUNT
Top 5
Resilient
Chains
continual increase in shopping centre
tenancy costs – particularly persquare-metre
rents – has resulted in an
unsustainable business model, especially
when ‘rent’ includes a percentage of sales.
This structure further reduces the margin
on already low-margin items.
The collapse of 343 fashion
jewellery stores, along with
Colette’s 99 stores currently being
in the hands of administrators,
leads to the question: why has
the retail landscape changed so
drastically over the past decade
for the lower end of the market?
Fine jewellery chains’ resilience
If one considers the long list of apparel and
accessories chains that have collapsed
over the past five years – including Roger
David, Marcs, Ed Harry, Rhodes & Beckett,
Bardot, and Jeanswest, among others – as
well as international chains which have
withdrawn from the Australian market, such
as Topshop, Esprit, Jigsaw, and Karen Millen,
fine chains have been surprisingly resilient.
Michael Hill Australia has expanded
throughout the past decade, with 12 more
stores in 2020 (156) than it had in 2010 (144).
However, those figures belie the fact that the
company went through major upheaval when
it exited the US market in 2018, closing nine
stores.
5 additional stores
since 2010
5 additional stores
since 2010
No store closures
since 2010
Only one fewer
store since 2010
Only one fewer
store since 2010
At that time, the Australian store count
had reached 172, which means that since
2010, when its store count was 144, it
opened as many as 28 stores to February
2018 – yet in the ensuing period it has
closed 16 stores (see chart page 40).
Michael Hill experienced a number of
other ups and downs. The ASX-listed
company decided to expand its ‘brand’
offering by establishing a new retail chain
in 2014 called Emma & Roe – named
after founder Sir Michael Hill’s daughter
Emma and his wife’s maiden name, Roe.
The new stores attempted to specialise
in ‘demi-fine’ charms, bracelets,
necklaces, earrings and stackable rings.
The concept was trialled for 18 months,
beginning in five Queensland stores
in 2013 under the Captured Moments
brand. After receiving “encouraging
results”, the company opened its first
Emma & Roe concept store in Mackay,
Queensland, in April 2014.
Even though the number of Emma &
Roe stores quickly increased, the venture
ultimately proved unsuccessful. By June
2018 then-CEO Phil Taylor announced
the closure of all 36 stores.
The ‘big boy’ of the Australian jewellery
industry, James Pascoe Ltd (JPL), the
owner of Prouds, Goldmark and Angus
& Coote, remains the largest group, as
it was in 2010. Since then it has had a
net loss of only 10 stores, or 2 per cent,
declining from 469 to 459.
While the result is impressive, like
Michael Hill, the company has
rationalised its store mix and footprint
TABLE 3: FINE & FASHION JEWELLERY
CHAINS’ STORE COUNT 2020
Chain
Stores
Prouds 261
Michael Hill 156
Lovisa 140
Pandora # 125
Angus & Coote 122
Colette* 99
Goldmark 76
Wallace Bishop 38
Zamels 37
Shiels 36
Mazzucchelli's 30
Bevilles 24
Salera’s 20
Hoskings 16
Gregory 15
Silver Shop 7
Graham's 6
Regency 6
Anthonys 5
Hardy Brothers 5
TOTAL 1224
# Pandora was not included on the Chain Store list in
2010 as it was defined as a ‘brand-only’ store while
* Colette did not exist as a chain in 2010 however, it
is now under administration
Prouds
Angus & Coote
CHART 2: PROUDS, ANGUS & COOTE AND GOLDMARK STORE GROWTH SINCE 2003
Goldmark
PROUDS STORES
Stores
300
200
100
0
2003 2007 2010 2020
ANGUS & COOTE STORES
Stores
150
100
50
0
2003 2007 2010 2020
Stores
150
100
50
0
2003 2007 2010 2020
The above charts show the growth of the three James Pascoe Ltd (JPL) chains stores. It should be noted that Angus & Coote and Goldmark were not part of JPL in 2003, which acquired the
ASX-listed Angus & Coote in a reverse takeover deal for $76 million in 2007.
GOLDMARK STORES
July 2020 | 35

STATE OF THE INDUSTRY | Chains through the decade
IN SUMM A RY
History
across Australia. Prouds increased its presence by an
impressive 44 stores since 2010 (from 217 to 261), yet 43
Goldmark stores were closed (falling from 119 to 76) during
the same period while 11 Angus & Coote stores got the chop.
Myles Norman, general manager JPL, confirmed that some
of the Angus & Coote and Goldmark ‘closures’ were stores
that were converted to, and re-branded as, Prouds.
Decline of Zamels
However, the story is not as positive when it comes to The
Jewellery Group, which owns Zamels and Mazzuchelli’s.
In 2010 Zamels was Australia’s third-largest jewellery chain
with 100 retail stores; however, by June 2020, a whopping
63 Zamels stores had closed. During the same period The
Jewellery Group also closed two single store ‘brands’,
Vivien’s and Budgens.
In 2003 we asked:
are there too many
jewellery stores in
the major shopping
centre?
After extensive
research we found:
71
The number of
major shopping
centres in capital
cities
On a brighter note, Mazzucchelli’s had increased from 25
stores in 2010 to 30 in 2020, most of which are new locations,
with one Zamels store (Chadstone, in Melbourne) being
converted to Mazzucchelli’s. As a result, The Jewellery Group
is now less than half the size it was in 2010, operating 60
stores, down from 127 (see chart 3).
Many of the problems facing Zamels can be traced to the
2007 sale of the 53-year-old family business to Quadrant
Private Equity. At the time, speculation valued the deal at
between $75 million and $100 million.
CHART 3: THE JEWELLERY GROUP
150
Zamels
TABLE 4: FINE & FASHION CHAINS BY OWNERSHIP
Chain Owner/Group Stores
Prouds
261
Angus & Coote James Pascoe
122
Group
Total
459
12,561
The number of
specialty stores
in the 71 centres
Stores
100
50
0
2003 2007 2010 2017 2020
Goldmark 76
Michael Hill Michael Hill 156 156
Lovisa BB Retail Capital 140 140
Pandora Pandora 125 125
Colette* Colette 99 99
Zamels
The Jewellery Group
37
67
Mazzucchelli's 30
667
The number of
jewellery and
watch stores
Stores
30
20
10
Mazzuchelli's
Wallace Bishop
38
Wallace Bishop
Hardy Brothers 5
Shiels
36
Transworld Enterprises
Graham's 6
Bevilles Bevilles 24 24
Salera’s Salera’s 20 20
Hoskings Hoskings 16 16
Gregory Gregory 15 15
Silver Shop Silver Shop 7 7
Regency Regency 6 6
Anthonys Anthonys 5 5
43
42
TOTAL 1224 1224
The above chart shows the updated chain store count as at June 2020.
Note that a ‘chain’ is defined as 5 or more stores. *Colette is under
administration.
5.3%
Jewellery stores
as a percentage
of all stores
16%
The percentage
of overall retail
sales at shopping
centres
0
2007 2010 2020
With a total of 67 stores, The Jewellery Group is half the size it was in 2010.
However, when the takeover was completed, industry sources
suggested the final sale was closer to $48 million – a figure
that many believed was still excessive.
Five years later, that assessment was seemingly proved
correct when Quadrant sold The Jewellery Group to one of
the world’s largest jewellery manufacturers: Mumbai-based
M Suresh Group DMCC.
In November 2017, Jeweller reported: “In a stunning
depreciation, Quadrant is tipped to be offloading the group
for less than $20 million – a loss of around $30 million in
just over four years.”
At the time of the second sale, industry pundits questioned
the logic of an Indian jewellery manufacturer operating
CONTINUED ON PAGE 38
36 | July 2020

300
200
Chains through the decade | STATE OF THE INDUSTRY
100
ZOOMING OUT
A HISTORY LESSON:
TWISTS & TURNS
0
CHART 4.1:
300
Pascoes Group Chart
2003 2007 2010 2020
Angus & Coote Goldmark Prouds
While the New Zealand based James Pascoe Ltd (JPL)
represents the largest retail footprint across Australia –
controlling Prouds, Angus & Coote and Goldmark chains –
that wasn’t always the case.
As previously noted, the 2010 State of the Industry Report
(SOIR) listed JPL with a combined total of 469 stores across
its three chains, falling to 459 this year.
The accompanying chart shows the growth of the three chains
since 2003, but it should be recognised that JPL acquired
Angus & Coote (A&C) and Goldmark in 2007 in a $76 million
deal. The acquisition included three other jewellery chains
which were part of A&C and which no longer operate.
A&C was established in 1895 and was listed on the Australian
Stock Exchange (ASX) in 1952. At the time of the JPL takeover
– which required approval from the Australian Competition
and Consumer Commission (ACCC) – A&C operated the
Edments, Dunklings and Amies chain, as well as Goldmark.
At the time of Jeweller’s first chain store research and
analysis in 2003, A&C operated 254 stores (Goldmark 114,
Amies 34, Dunklings 26, Edments 25, A&C 55) and according
to research firm IBISworld, the company had 12 per cent of
the jewellery and watch store business.
The deal was controversial not only because it required
ACCC approval, but also because it was a ‘reverse takeover’
– named for when a smaller company attempts to acquire
a larger company.
JPL announced the takeover move in January 2007 when it
had around 174 Prouds stores in Australia and when the
ASX-listed A&C accounted for around 246 stores.
In addition, Prouds was only the third-largest group at the time
of the reverse takeover; Kleins, a fashion jewellery franchise,
was the second-largest chain/group, with 182 stores.
In another interesting twist, reminiscent of recent history, in
May 2008 Kleins was placed into receivership after collapsing
with $20 million in debt. Two months later the company was
liquidated after administrator James Stewart, of Ferrier
Hodgson, said he was being forced to close the business.
“Despite 46 expressions of interest and eight indicative
offers being received, once parties proceeded to due diligence
it was clear that no-one was confident about returning the
business to profitability, considering the risks and financial
commitment required,” Stewart said.
In November 2008 Prouds went on to re-brand Amies in
Queensland, Dunklings in Victoria and Edments in South
Australia and Western Australia as Angus & Coote stores,
which helps explain the increase from 41 stores in 2007
to 133 in 2010, and finally 122 this year.
And in one final twist, of the 1,224 chain stores across
Australia in 2020, 50 per cent are owned and ‘controlled’ by
the Kiwis: James Pascoe Ltd and Michael Hill International.
200
100
0
Pascoes Group Chart
CHART 4.2: Angus & Coote Goldmark ABOVE JAMES Prouds PASCOE
LIMITED STORES BY BRAND
500
The above chart shows the growth of the
three James Pascoe Ltd (JPL) chains
stores over the past 17 years. It should be
400
noted that Angus & Coote and Goldmark
were not part of JPL in 2003; they were
acquired in 2007 in a reverse takeover
300
deal of Angus & Coote.
200
100
0
2003 2007 2010 2020
‘03 ‘07 ‘10 ‘20
Total Stores
LEFT JPL TOTAL STORES
The combined total of stores for
the three James Pascoe Ltd chains
since 2003.
2003
CHART 4.3:
2007 2010 2020
Australian chains with New Zealand ownership (By Brand)
10%
Chain by Brand
Stores
ANGUS & COOTE
122 STORES
Angus & Coote (JPL) 122
Goldmark (JPL) 76
Prouds (JPL) 261
Michael Hill (MHI) 156
Other 609
TOTAL 1224
OTHER
50%
609 STORES
NZ-OWNED in % 50%
Australian chains with New Zealand ownership (By MICHAEL Group) HILL
13%
156 STORES
Chain by Group
Stores
James Pascoe (JPL) 459
Michael Hill (MHI) 156
Other 609
TOTAL 1224
NZ-OWNED in % 50%
OTHER
50%
609 STORES
JPL
38%
459 STORES
MHI
13%
156 STORES
PROUDS
21%
261 STORES
GOLDMARK
6%
76 STORES
ABOVE The pie charts show the number of New Zealand owned/controlled jewellery chains
trading in Australia by brand name and by group owned. They account for 50 per cent of stores.
July 2020 | 37

STATE OF THE INDUSTRY | Chains through the decade
CHART 5:
Wallace Bishop
Bevilles
Salera’s
60
40
30
Stores
40
20
Stores
30
20
10
Stores
20
10
0
2003 2007 2010 2020
0
2003 2007 2010 2020
0
2007 2010 2020
The above charts show the store count changes for Wallace Bishop, Bevilles and Salera’s based on Jeweller’s previous reports.
an Australian-based retail chain, which
then accounted for 102 Zamels and 27
Mazzucchelli’s stores.
Zamels had also encountered problems
with its brand image in 2012 when it was
fined $250,000 by the Federal Court after
being found guilty of misleading consumers
about the savings to be made during an
extensive sales period.
Unfortunately for The Jewellery Group,
it was the second time that Zamels had
been targeted by the Australian Competition
and Consumer Commission (ACCC) over
two-price – also known as ‘was-now’ –
advertising.
In 2006 the ACCC launched legal
proceedings against the then-family owned
Zamels in regard to its 2005 Christmas
catalogue. The Federal Court found
that Zamels had not sold the items at a
strikethrough (was) price for a reasonable
period prior to the sale.
This ACCC double-whammy might also have
affected the Zamels’ business model which
was based around ‘was-now’ advertising;
its retail marketing and pricing strategies
were changed and which, ultimately, could
have impacted trading levels.
Mid-sized chains up and down
The mid-sized retail chains present an
interesting scenario, with developments
that might have seemed unexpected a
decade ago.
celebrated its centenary. At the time, CEO
Stuart Bishop – the grandson of founder
Wallace Bishop – told Jeweller that the
retailer had overcome many obstacles over
the years, including two World Wars, the
Great Depression, economic downturns
and the Global Financial Crisis of 2008.
“We have tackled and embraced the rise of
the shopping centre during the 20th Century
and of course more recently, the internet
revolution,” Bishop added.
However, despite the business’ long
history of resilience, it is fair to say that
management didn’t expect to see anything
like the coronavirus pandemic that has
caused a worldwide economic crisis.
Still, Bishop told Jeweller: “Our Wallace
Bishop stores remained open during
COVID-19 by implementing strict health
and safety procedures, while our Hardy
Brothers boutiques were temporarily
closed in response to COVID-19 but
have now resumed trading.”
Bishop confirmed that the current store
count of 38 Wallace Bishop and five Hardy
Brothers stores was the same as in the
pre-COVID-19 period, adding, “There are no
plans to close any stores in the foreseeable
future. We continue to review our store
footprint, which is ‘business as usual’ for
the Wallace Bishop Group.
“Any store closures over the past 12 months
were due to ‘end of lease’.”
OBITUA RY
Death of
fashion the
past decade
176 stores closed
104 stores closed
22 stores closed
(Online only)
Transworld’s second ‘brand’, Grahams
Jewellers, closed two stores, down from
eight in 2010 to six in 2020. However,
according to Toby Bensimon, managing
director of Transworld Enterprises, one
more Grahams store is scheduled to
close because “it’s not the right location”.
Rise and fall – and rise
Even more intriguing are the fortunes
of Bevilles Jewellers. Once a bastion of
Melbourne fine jewellery retailing, it was
founded in 1934 by Leo and Rae Beville and
has been in the hands of three generations
of their family since, with granddaughter
Michelle now CEO.
It first expanded outside of Victoria in
2003 when it opened its first NSW store at
Parramatta. Today its store count stands
at 24, compared with 29 in 2010. While that
figure indicates a loss of only five stores,
the story is more complex – one that is both
negative and positive.
While the recent history of
Bevilles is tumultuous, its current
position perhaps indicates the
resilience of its management...
[After] entering administration,
the business was subsequently
rebuilt, bringing its store count
back to 24.
In 2010, Wallace Bishop was Australia’s
sixth-largest fine jewellery brand, with
57 stores. It also operated seven Hardy
Brothers stores after acquiring the iconic
brand in 1997.
With a combined total of 64 group stores,
Wallace Bishop was the fourth largest group
after JPL (469 stores), Michael Hill (144) and
The Jewellery Group (127).
The high-profile Queensland retailer has
since closed 19 stores as well as two Hardy
Brothers stores.
In 2017, the proud family business
While Wallace Bishop’s store count reduced
by 33 per cent, South Australia-based Shiels
Jewellers managed to expand over the past
decade with a major move into Queensland,
where it opened seven stores.
In 2010 Shiels, owned by Transworld
Enterprises, was the seventh-largest retail
chain and 10 years later it has expanded
from 31 stores to 36.
Interestingly, it has reduced its West
Australian store count by five (17 to 12),
while South Australia, where the company
is based, increased by one (14 to 15).
20 stores closed
(Online only)
11 stores closed
(Online only)
Not only does Bevilles operate fewer
stores today than it did in 2010, over the
ensuing years two stores were closed and,
in April 2014, the chain entered voluntary
administration.
As a result, Bevilles’ store count was
forcibly reduced; 11 stores closed, bringing
to 16 the number of stores across Victoria,
NSW and South Australia.
However, the business was subsequently
CONTINUED ON PAGE 41
38 | July 2020

Chains through the decade | STATE OF THE INDUSTRY
ZOOMING IN
PANDORA: PAST THE PEAK?
While the accompanying fine jewellery chain store
analysis does not include Pandora, its store count
has been included in the 2020 Chain Store table.
The company and brand was defined as a ‘brandonly’
chain in the 2010 State of the Industry Report
(SOIR) – rather than a fine jewellery chain.
The distinction is important because Pandora was,
and remains, both a supplier to the wider jewellery
market and a prominent retailer of its own brand.
For this reason, the 2010 SOIR listed Pandora as a
‘brand-only’ operator, which was defined as “one,
or more, fine or fashion jewellery stores that sells
and markets its own brand of jewellery and/or
watches.
It is usually a vertical-market operation, does not
utilise local suppliers, and stores are often owned
and operated by the proprietor of the brand or
under license via franchise agreements.”
Since 2010 the Pandora ‘Concept’ (brand-only)
stores – many of which are operated by franchisees
– have increased from 41 to 125. However, a
number of the stores have closed in recent times.
Pandora Australia refused to divulge the figure,
but it is rumoured to be approximately five.
Traditional jewellers once frowned upon Pandora
jewellery as a cheap fashion product; however the
line between fashion and fine jewellery is often
subjective and it was blurred when Pandora’s
designs began using gold and diamonds.
Further, the dismissive ‘fashion’ tag flew in the
face of Pandora’s successful distribution model,
and which best demonstrates the evolution of the
brand and the industry. That is, by around 2010
Pandora was sold by more than 700 independent
jewellery stockists.
Following a six-year run of meteoric growth, the
company began closing accounts in Australia and
New Zealand; during 2011 alone, more than 100
stockists had their accounts closed as Pandora
entered a “new business phase in Australasia”.
The news struck the industry hard, but more was
to come.
In 2012, Pandora Australia announced a further
100 stockists would be closed while at the same
time pushing its own franchise model.
Pandora was, and remains, both
a supplier to the wider jewellery
market and a prominent retailer
of its own brand.
The table below shows that from a peak of more
than 700 Australian independent stockists, the
brand is supported by only 124 stores today. In
other words, Pandora maintains only 18 per cent
of its independent consumer distribution points
as it did at its peak.
Adding the Pandora franchise stores, that figure
reaches around 35 per cent.
In fairness, much of the decline has been at
the company’s choice; however, the way it has
managed itself over recent years caused many
jewellers to quit the brand – with some making
the decision for Pandora.
Reasons for no longer stocking Pandora have
included what many saw as excessive and unfair
trading terms and conditions, along with being
treated as ‘second-class citizens’ compared to
the franchise operators.
For example, the increased number of forced
deliveries per year gave retailers little choice in
their own stock levels. Combined with minimum
quantities on each item (i.e. pack sizes of three-ofkind),
independent stockists were prevented from
matching stock purchases with sales, resulting in
ever-increasing stock levels.
The over-stocking problem increased to such
an extent that, in August 2019, the company took
the extraordinary step of buying back jewellery
from stockists for smelting. However, even
the buy-back program was saddled with strict
conditions, including that retailers would be
charged a handling fee.
The retailers’ decision to stop stocking Pandora
may have been well-founded, given that over the
past three to four years, Pandora sales have
been declining – to the extent that in 2019, the
company announced an international ‘re-launch’
of the brand.
Less than two years after announcing that it
would focus on its company-owned and franchise
stores, thereby closing thousands more wholesale
accounts from its independent jewellery retailers,
Pandora Jewelry CEO Alexander Lacik declared in
February this year that that may have been a poor
decision.
Lacik, who joined Pandora in April 2019 from
outside the jewellery industry, believes the
company might have lost “a lot of new customers”
and may need to refocus on distribution to
independent jewellery stores – the very
businesses that it once discarded.
2020 Points of Sale NSW VIC QLD WA SA TAS ACT NT Total
Pandora Concept Store 42 28 26 17 6 2 3 1 125
Pandora Stockist 45 33 31 4 7 1 0 3 124
TOTAL POINTS OF SALE 87 61 57 21 13 3 3 4 249
50
Pandora Pandora
Pandora
No. of stockists 2010 700
No. of stockists 2020 124
800
Stockists 10 v 20
Decline 576
Percentage decline 82%
No. of stockists 2010 700
Points of Sale in 2020 249
Decline 451
Points of Sale 2020
800
Percentage decline 64%
Stores & Stockists
40 40
30
30
20
20
10
10
0
0
Stores & Stockists
50
40
30
20
NSW VIC QLD WA SA TAS ACT NT
NSW 10 VIC QLD WA SA TAS ACT NT
2010 2020 2010 2020
ABOVE Table and chart compares the number of Pandora Concept (brand-only) stores
ABOVE Shows how the number of Pandora stockists has reduced since
and Pandora independent stockists by state.
2010 compared to the increase in Pandora Concept (brand-only) stores,
0
NSW VIC QLD WA SA TAS
noting that the number of independent stockists has declined by 82%
ACT NT
Number of Stockists
600
400
200
0
Number of Stockists
600
400
200
0
July 2020 | 39

STATE OF THE INDUSTRY | Chains through the decade
A GLANCE THROUGH 2003 - 2020
CHAIN SNAPSHOT: STORE COUNTS
The charts below detail the changes in store count across a number of well-known fine and fashion jewellery chains over time.
These changes reflect factors such as the evolving nature of the retail environment, individual business decisions including the
re-branding of ‘sister’ chains, and macroeconomic factors such as the Global Financial Crisis.
Michael Hill
Zamels
Mazzuchelli's
200
150
30
Stores
150
100
50
Stores
100
50
Stores
20
10
0
2003 2007 2010 2018 2020
0
2003 2007 2010 2017 2020
0
2007 2010 2020
Wallace Bishop
Bevilles
Salera’s
60
40
30
Stores
40
20
Stores
30
20
10
Stores
20
10
0
2003 2007 2010 2020
0
2003 2007 2010 2020
0
2007 2010 2020
Bevilles Shiels
Gregory
Hoskings
40
20
20
30
15
15
Stores
20
10
Stores
10
5
Stores
10
5
0
2003 2007 2010 2020
0
2003 2007 2010 2020
0
2007 2010 2020
Lovisa
Diva
Equip Accessories
200
200
150
Stores
150
100
50
0
2010 2014 2020
Stores
150
100
50
0
2007 2010 2020
Stores
100
50
0 0
0
2007 2010 2017 2020
40 | July 2020

HILLS AND VALLEYS
KEY MOMENTS FOR
MICHAEL HILL
It’s been a topsy-turvy decade for Michael Hill
International. Following the opening of his first
store in 1979 in the New Zealand town of
Whangarei, jeweller Michael Hill became well
known for unique designs and utilised highimpact
advertising to elevate the business to
national prominence.
The company grew steadily, and by 1987 it had
10 stores and was listed on the New Zealand
Stock Exchange (NZX). At the same time, the
company expanded into Australia, opening
four stores in Brisbane over four weeks.
In 2002, the company opened five stores in
Canada and six years later made inroads into
the US market by acquiring and re-branding
17 stores from Whitehall Jewelers.
In January 2011, and the age of 72, founder
Michael Hill was granted a knighthood in
New Zealand’s New Year Honours List.
After a long and illustrious career, Sir Michael
retired as his namesake company’s chairman
in November 2015 and the following year
Michael Hill International (MHI) was listed on
the Australian Stock Exchange (ASX).
At the time, 60 per cent of its stores were in
Australia and more than 80 per cent of MHI’s
revenue and profits were generated outside of
New Zealand.
The company began trading on 7 July 2016 at $1.15
per share. At the time of publication its share price
was $AU0.32 on the ASX and $NZ0.34 on the NZX.
The company’s 2019 Annual Report recorded a
total of 306 stores; 168 stores in Australia (dropping
to 156 by July 2020), 52 in New Zealand and 86 in
Canada. It reported revenue of $569 million and
post-tax profit of $16.5 million.
In October 2016 the Hill family trust, Hoglett
Hamlet, sold 10 per cent of its stake – 16 million
shares – in MHI for $25.6 million. However, it
remains the company’s largest shareholder,
owning 38 per cent of the company.
restructured and four months later a new
store was opened at Melbourne’s Westfield
Fountain Gate.
Then, in December 2015, the chain opened
a new Melbourne CBD store, having exited
Bourke Street Mall in 2011 when it was
“outbid” by Swarosvki for the ‘flagship’
location where it had been mall positioned
for more than a decade.
At the time, Michelle Beville said, “The
lease was up and we put in a bid to renew,
however the landlord decided to go out to
market after international interest [from
other retailers].
“International players have come to town
and they have the ability to pay fabulous
rent. The right rent moving forward [for
smaller companies] is difficult, due to these
international companies.”
In October 2017, Indian jewellery company
Tara Jewels acquired a 49 per cent stake in
Bevilles, four years after forming a “strategic
alliance” with the Australian jewellery
retailer.
While the recent history of Bevilles is
tumultuous, its current position perhaps
indicates the resilience of its management;
after ‘losing’ the high-profile Bourke Street
Mall store and entering administration, the
business was subsequently rebuilt, bringing
its store count back to 24 – close to its peak
of 29 in 2010.
By anyone’s reckoning, that’s no mean feat.
Another Victorian-based chain has also
proved quite resilient over the past 10 years.
Salera’s began 2010 with 21 stores – 15 in
Victoria and six in Queensland – increasing
to 23 the following year.
Alfredo Salera founded the business in 1953;
by June 2020, its store count was 20 – an
enviable and sustained record for a familyowned
and operated mid-sized chain.
Hoskings Jewellers has also proved
relatively robust. It made Jeweller’s list in
2010 with 17 stores, and today the Victorianbased
jeweller still operates 16 outlets.
IN SUMM A RY
Insights
Fashion
jewellery chain
stores have
seen a massive
decline, due
to increased
competition
and occupancy
costs
Fine jewellery
chain stores
have remained
resilient, when
compared with
both fashion
jewellery and
the broader
discretionary
category
Fine and
fashion
jewellery
remain
differentiated
in the market
Large jewellery
groups have
maintained
control of
fine jewellery
chains
Lovisa has
become the
dominant
player in
fashion
jewellery, with
140 stores
and no major
competitors
The company also owns the Goldsmith
brand, which has been less fortunate;
seven stores were closed in the past 10
years, with its numbers falling from nine
to two.
With that said, three Goldsmith stores
were converted to Pandora ‘Concept
stores’; Hoskings now operates six
Pandora stores in total (see page 40).
The 2010 SOIR also detailed that Hoskings
owned and operated four other jewellery
stores: three under the Sterns brand and
one Diamond House. These stores no
longer exist.
Once again, taking into account the demise
of many high profile and long-standing
retail businesses across the apparel
and fashion accessory categories, the
resilience of fine jewellers is impressive.
Other well-known names that have stood
the test of time include NSW’s Gregory
Jewellers and Regency Jewellers. In
2010 Gregory Jewellers was listed as a
small-sized chain with 16 stores and
today it has 15.
While one Gregory store was technically
closed, it was converted to a Gucci store
operated by Gregorys.
Another small chain, Regency Jewellers,
which was founded in 1968, has also fared
well. It operated six stores throughout
regional NSW in 2010 and it still operates
the same number today.
The same cannot be said for the
Queensland based Anthonys Fine
Jewellers. It was listed with eight stores in
the 2010 SOIR, however today it has been
reduced to five across Brisbane. Owned
by Queensland Wholesalers, the company
also operated three Kings Jewellers stores
in 2010 – all of which have ceased trading.
While Anthonys, with five stores,
continues to be defined as a ‘chain’, the
same cannot be said for Brisbane-based
Pascoe Jewellers or Melbourne-based
Dio Oro Jewellers.
Both have suffered over the past 10 years,
with Pascoe having closed six stores (from
nine to three) and Dio Oro reducing its
store count from seven to one; therefore,
both businesses have been removed from
Jeweller’s ‘chain’ store list, along with
Goldsmith, as mentioned previously.
While the wider Australian non-essential
(discretionary spend) retail industry has
suffered greatly in the past decade, it’s
fair to say that many industry experts
had predicted bleaker times for fine
jewellery chains.
In the past decade only two names
disappeared altogether and, although
there has been a net loss of 118 stores,
from the original 978, 63 closures were
from Zamels alone.
Reviewing the past 10–15 years – the first
of Jeweller’s analysis of jewellery chains
was published in 2003 – many jewellers
lamented the rise of, and competition
from, fashion jewellery.
It was viewed as ‘cheap product’, however,
this category has been impacted most by
changes in the retail sector.
To that end, fine jewellery retailers
have demonstrated an adaptability and
buoyancy over the past decade that
was not only unexpected, but should be
celebrated given the current times.
Editor’s note: It should be recognised that
even though some jewellery websites remain
“live”, this does not mean the business or its
bricks-and-mortar stores still operate.
The 2010 State of the Industry
Report also researched and analysed
Flagship and Brand-Only stores as
well as independent retail jewellery
stores and the buying groups. The
next instalment of the 2020 State of
the Industry Report will examine
Flagship and Brand-Only stores.
July 2020 | 41

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magazine in Australia.
Alexa.com, the global ranking system for analysing
website readership, ranks jewellermagazine.com well
above its industry competitors.
Better still, Feedspot, the independent content reading
service, ranks Jeweller #3 in the world. Of all B2B
jewellery publications, we rank just behind the US’s
National Jeweler and the UK’s Professional Jeweller in
Feedspot’s “Top 10 Jewelry Magazines & Publications
To Follow in 2020”.
It’s Jeweller’s commitment to excellence in reporting,
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VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY

Chains through the decade | STATE OF THE INDUSTRY
LEFT As at June 2020
there were 20 fine
jewellery and fashion
jewellery chain stores
with 1,224 stores
nationally.
0 100 200 300
295%
increase in
James Pascoe Ltd
Australian store
count from
2003 to 2020
1,224
As at July 2020, there were
1,224 fine and fashion
jewellery chain stores
operating in Australia
90%
of fashion jewellery
chain stores that were
operating in 2010 had
closed by 2020, perhaps
due to rent increases and
online competition
50%
of Australian jewellery
chains are owned controlled
by New Zealand entities
Four fine jewellery chains
increased their store
count since 2010 through
expansion or re-branding:
Prouds, Michael Hill,
Shiels, and Mazzuchelli’s
64%
decline in Pandora points
of sale (stockists and
concept stores) since 2010
78%
of fine jewellery chain
stores are controlled by
just three companies –
James Pascoe Ltd,
Michael Hill, and Pandora
12% 118 STORES
fine jewellery chain stores
have closed since 2010
4 February ‘20
Colette By Colette Hayman
– the last major fashion
jewellery competitor
to Lovisa – went into
voluntary administration
July 2020 | 43

Together
We’re in this together. Worth and Douglas are
here to help, providing the quality, speed, and
service you’ve come to expect from us for over
60 years.
Your account manager will be reaching out to
discuss ways we can support you during these
unusual times.
WORTH & DOUGLAS LTD
(03) 9338 0091 / 1800 006 388
sales@worthdouglas.com.au
worthdouglas.com

BEST OF BUSINESS
Feature
Five methods for maximising
profits on all stock
Profit margin is a metric that should always be on a retailer’s radar, and for good reason: it answers critical
questions about your business. FRANCESCA NICASIO reports.
A profit margin isn’t just something
that retailers should measure; it’s a
metric that retailers should strive to
continuously improve.
As author Doug Hall wrote, “If your profit
margins aren’t rising, chances are your
company isn’t thriving.” To help do just
that, here are some pointers that can
enable retailers to widen their margins:
Lower the cogs
Take a closer look at all materials and
procedures required to create or source
your products and establish how these
materials can be purchased for less
without compromising the quality.
Is it necessary to order larger
quantities? Are there any middlemen or
administrative expenses that can be cut
from the process?
Consider these things carefully and
then take action accordingly. Let’s
say a retailer needs to increase order
quantities for a particular item to lower
its price.
In this case, the retailer should first look
at inventory data and determine if he can
afford to order certain items in bulk.
If not, would it be possible to consolidate
orders with other items or team
with other purchasers to increase
buying power?
This is something that large retailers
have been doing for quite some time now.
A few years ago, for example, Walmart
sought out co-purchasers for raw
materials so the chain could consolidate
purchases and get more buying clout.
Explore options and run them by
suppliers to see if better deals can be
negotiated. If suppliers won’t budge,
don’t be afraid to check out other
suppliers to find out if they can offer
more favourable terms.
Make sure existing suppliers are aware of
this though, as they might end up offering
better rates.
Increase prices
Setting prices at a higher level enables
retailers to make more money on each
sale, thus increasing margins and
improving the bottom line; however,
retailers can baulk at the prospect of
Do you want to
sell to shoppers
who would take
their business
elsewhere just
because they
could get an
item for less,
or would you
rather attract
customers
who don’t base
their purchase
decisions solely
on price
increasing their prices out of fear that
they’ll lose customers.
Pricing decisions depend on each
company’s products, margins and
customers. The best thing to do is to look
into your own business, run the numbers
and figure out your pricing sweet spot.
On top of considering basic pricing
components like costs and margins, look
at external factors such as competitor
pricing, the state of the economy and the
price sensitivity of target customers.
Also take the time to consider what types
of customers you want to attract. Do
you want to sell to shoppers who would
take their business elsewhere just
because they could get an item for less,
or would you rather attract customers
who don’t base their purchase decisions
solely on price?
It’s surprising to find that the majority
of your regular customers may actually
belong to the latter group – a study
by Defaqto found that 55 per cent of
consumers would pay more for a better
customer experience.
July 2020 | 45

Best of Business | METHODS FOR MAXIMISING PROFIT ON ALL STOCK
Taking all these things into consideration,
a price increase can be calculated and
tested on a few select products. Retailers
can then gauge customer reaction and
sales from there.
Also consider implementing creative
or psychological tactics when coming
up with prices in order to make them
more appealing. Tiered pricing is one
effective strategy.
In order to combat cheaper knock-offs,
one US shoe retailer, Footzyfolds, decided
to revamp its prices – but not in the
way one might think. Instead of lowering
prices across the board, Footzyfolds
introduced a high-end category for
its products.
With the new pricing format, it lowered
the price of its everyday products to $20
a pair and introduced a new ‘Luxe’
category for $30 a pair.
Owner Sarah Caplan told the New York
Times that the move helped increase
revenue dramatically.
“We actually have had the most interest
in our higher-priced shoes,” she said,
adding that the business reported a
100 per cent increase in revenue after
launching the high-end line in the
summer of 2010.
The way to communicate new prices
is just as important as the prices
themselves, so put thought into how these
messages are relayed to customers. Give
shoppers a heads up prior to any price
hike; let them know it’s happening and
how it’s going to benefit them.
Also, be sure to communicate
differentiating factors as well as value in
service. Justify higher prices by telling
customers why the store is different or
better than the competition.
Ensure customers are aware of it however
this is demonstrated.
The right price increase could improve a
store’s bottom line significantly enough
to offset any losses from shoppers who
decide not to buy from you. Additionally,
having fewer customers helps lower
operating expenses while freeing up
staff to increase service quality at the
same time.
Reduce expenses with automation
Automation can do wonders for
productivity as well as the bottom line.
By putting repetitive activities on
autopilot, retailers can reduce the time,
manpower and operating expenses
required to run a business.
Are there any cumbersome activities
that are eating up the time of your staff
members? Take note and then look for
solutions that can take care of them
automatically.
For instance, to save time and operating
expenses, I know of one menswear store
that automated the task of transferring
sales data to accounting software.
Rather than manually plugging the
numbers into the program, the owner
integrated his point-of-sale system with
accounting software and got the two tools
talking to each other so that information
was automatically transferred from one
program to the next.
The result: he has been able to free up
time so he and his staff could devote
more energy to helping customers. He
estimates that the automated system in
his store ‘saves’ 40 to 80 hours a week.
This doesn’t just apply to data entry.
These days, there’s an app for most of the
boring administrative tasks.
Optimise supplier relationships
Earlier in this article, I mentioned
negotiating better contracts with
suppliers to reduce the costs of goods
and widen margins. Consider building
stronger relationships with suppliers.
Ask if there’s anything that can be done to
make things easier or more cost-effective
for them so they can fulfil orders in a
more efficient way.
Strengthen relationships with suppliers
and determine how you can work better
together. Doing this can help you identify
ways to reduce product costs and
BOOST THE
BOTTOM
LINE
Maximise
margins
Reduce
expenses by
optimising the
supply chain
Improve
efficiency
Focus on
servicing
customers –
use apps and
software for
other tasks
Perfect
pricing
Set prices
higher or
introduce a
tiered system
to maximise
every sale
Differentiate
discounts
Tailor special
offers to each
customer –
don’t offer
blanket
discounts
operating expenses. At the very least, it
should improve workflow and productivity.
Personalise your offers
Another effective way to improve margins
is to offer tailored discounts. Remember,
not all customers are wired the same
way; some people may need a discount
incentive to convert while others don’t
really require a lot of convincing.
Identify how big of a discount is necessary
to convert each customer. Case in point:
Online bicycle retailer BikeBerry.com
sought the help of a big data company to
analyse customer behaviour and gather
intel on the past purchases of customers,
their browsing histories and more.
The store got to know its customers
and was able figure out the most costeffective
way to convert each one.
BikeBerry then created a series of email
campaigns with five different discount
offers tailored to each individual, including
free shipping, 5 per cent, 10 per cent, 15
per cent or $30 off new products.
The campaigns ran for two months and
the business not only increased sales
within that period but also widened its
profit margins by not offering discounts
to customers who would convert at a
lower threshold.
Instead of offering blanket discounts,
go through the purchase histories of
customers and personalise offers based
on their behaviour and preferences.
Doing so won’t just increase the
chances of conversion; it’ll also help
you maximise margins.
A retailer doesn’t always have to
make drastic changes to a business to
significantly improve the bottom line.
As this article has shown, sometimes
a simple tweak in pricing or a phone
call to a supplier can pave the way for
wider margins.
FRANCESCA NICASIO is a retail
expert from Vend, a POS, inventory and
customer loyalty software for merchants.
Visit: vendhq.com/examples
July 2020 | 47

BEST OF BUSINESS
Selling
Blind spots that kill business growth
The things that retailers don’t do can play an important role in increasing sales and improving their businesses.
IAN ALTMAN reports on how to identify and avoid potential pitfalls.
One of the most common questions
I get asked when speaking at events is,
“What can I do to grow our business?”
You might think that I immediately jump
into issues about sales training
or messaging.
Though it’s possible to achieve minor
improvements with sales tactics or
messaging alone, I have realised that
the larger issue is activities that harm
business growth.
Retailers are constantly looking to
improve their businesses but they’re
not always aware of the blind spots
that can kill sales growth.
Businesses can improve dramatically
if they get their messages and marketing
mix right but they can also improve
if they just avoid a few small potential
pitfalls that stand between them
and success.
Blind Spot 1: Customer experience
The easiest way to grow is often the most
overlooked element.
What percentage of expenses do retailers
allocate to sales? How about marketing?
How about customer service and
retention?
In most retail businesses, service and
retention suffer from benign neglect.
In fact, digital marketing advisory firm
Convince And Convert recently reported
that less than 2 per cent of every dollar
spent on marketing is spent on customer
service and retention.
Blind Spot 2: Attract with focus
When retailers are struggling, they
often move to increase sales activity
or volume.
If a salesperson converts one in 40
prospects each week, then he or she
might think the answer is to speak with
more prospects – if they speak with 60
potential customers, there’ll be more
conversions, right?
It’s not likely.
If the message is weak, increasing the
number of people who hear that message
won’t result in more sales. Instead,
Businesses
can improve
dramatically if
they get their
messages and
marketing
mix right but
they can also
improve
if they just avoid
a few small
potential pitfalls
retailers need to think about what their
sales staff can do to attract the right
potential customers to the business.
This often means narrowing the focus,
not broadening it. Ultimately, this
includes ignoring those potential clients
who are not a good fit for the business.
Sales staff need to focus on the situation
a customer might be facing and be
empathetic toward that situation. Ask
what can be done via marketing that
would attract these customers to
the business.
If a car made an odd, clicking sound
every time it turned right, the owner
might first turn to Google for information
and search ‘right turn clicking sound’.
This is because people search by
describing the problem they are trying
to solve; however, on most websites,
retailers talk about what businesses do
rather than why customers need them.
Marcus Sheridan, CEO of TheSales
Lion.com, teaches a philosophy:
“They ask. You answer. Be the best
48 | July 2020

FOCUS
POINTS
Put your
customers
first
Invest in
service and
retention to
improve sales
Think
like your
customer
Focus your
marketing on
solving your
customers’
problem and
Align
sales and
marketing
Make all teams
aware of your
strategy
teacher in the world at whatever it is that
you do.”
To quickly attract the right customers, retailers
have to build trust by sharing ideas.
Blind Spot 3: The ‘real’ finish line
Imagine, for a moment, that a store attracts
all the right customers and makes the sales.
Is that thefinish line? Did the store “win
the race”?
Making sales is only the first step.
If a customer leaves with a purchase that
wasn’t exactly what they wanted, they’ll blame
the store.
These disgruntled customers can become
toxic clients who can suck the life out of any
business. What this means is that all retailers
must focus on ensuring their sales teams can
deliver results.
In an interview with John Jantsch on the
Grow My Revenue business podcast, Jantsch
discussed the importance of recognising that
a sale is not complete until the client achieves
the results they were expecting.
Imagine how a customer would react if
sales staff asked them what it would take
for them to feel their visit was a success rather
than whether or not they’re going to buy
the product.
Blind Spot 4: Lack of alignment
Even the most skilled companies can overlook
the fourth blind spot: when one functional
department decides to impact how a store does
business and the other departments struggle to
get on board.
For example, marketing aims to attract the
‘right’ type of customer to the business but
then the sales team focuses only upon the sale.
In another scenario, perhaps marketing and
sales both do well but the back office lacks
a plan to ensure customer success. Without
proper buy-in and alignment, companies can
struggle for years despite good intentions.
Retailers that can align all of these areas
will achieve dramatic results and those who
know the blind spots can avoid some of the
roadblocks to growing their businesses.
IAN ALTMAN is the CEO of Grow My
Revenue and an advisor and speaker
on sales and business development.
Visit: growmyrevenue.com
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BUSINESS
Management
Tips for keeping your staff motivated
Everyone knows staff motivation leads to success. DOUG FLEENER says what might not be so obvious is that
motivation can’t be taught and rather needs to be encouraged.
Years ago, I had an incredibly talented
retail associate working for me. He
was smart, charming, a fast learner
and one of the best salespeople I ever
met. Unfortunately, there was one
major problem: he was lazy, doing only
enough to get by.
I spent an incredible amount of time
and energy trying to motivate him.
I could sometimes get a bump in his
performance but he invariably slid
back into mediocrity.
What I didn’t understand at the
time is that the ability to motivate
others is a myth. I know that sounds
like leadership blasphemy, but I’m
convinced you can’t motivate the
unmotivated.
Motivation is the desire or willingness
of someone to do something, and the
desire to work with customers has to
come from within.
The willingness to proactively engage
and sell to customers has to be
something a person wants to do;
you can’t successfully motivate
people to do something if they just
don’t want to do it.
The role of financial incentives
Doesn’t money motivate people?
A study by Edward Deci, a psychologist
at Rochester University, found that
students offered cash prizes to solve
puzzles were less likely to continue
working on them after payments
had been made.
Deci’s work helped clarify the
relationship between intrinsic and
extrinsic motivation – doing things
because you like doing them or doing
them because you want a reward.
This is why hiring the right person is
so important.
Offering a motivated person more
money could result in higher
performance but it will have little to
no effect on the unmotivated.
If you pay a mediocre employee more,
all you will have is a highly-paid
mediocre employee.
Motivation is
the desire or
willingness
of someone to
do something,
and the desire
to work with
customers has
to come from
within
Get the most out of your staff
Instead of trying to motivate people,
the key is to inspire the motivated and
remove the unmotivated. Here’s how:
Make work fun – one of my favourite
sayings is, “You can’t ask people to give
service with a smile until you give them
something to smile about.”
The best leaders have the ability to
make each day a great experience for
their team.
Make each day challenging – working
in retail is like the movie Groundhog
Day: every day can be the same day
over and over.
Good leaders challenge their
employees to try new things and to
strive to improve on what they weren’t
so good at yesterday.
Be constant and consistent with staff
development – motivated people
want to learn; they want to grow.
A development plan doesn’t have to
be complicated, but it does need to be
constant and consistent.
50 | July 2020

Recognise performance – never
underestimate the importance of
specific recognition.
Staff want to contribute to a store’s
success and they especially appreciate it
when their effort is called out.
Create a strong sense of team – good
teams bring out the best in each member,
provide mutual support and bring purpose
to each other’s work.
A group of people isn’t a team; a group
of people committed to a common cause
and enabling each other’s success is.
Provide incentives – incentives like
prizes are a great way to inspire motivated
staff, but remember that it’s as important
to focus on and reward the right
behaviour as it is to achieve the
desired results.
Empower and simplify – give staff
responsibilities. Let them ‘own’ tasks.
Show you trust them. Make their work
easy. Oversee it all from a distance. Step
in to guide when required and always
reward success.
Have standards – one of the fastest
ways to demotivate a motivated
employee is to fail to hold everyone
accountable for business standards
and expectations.
Most people will rise to what’s
expected of them but they’ll also
lower themselves to match the level of
accountability set for others.
Give staff a voice – motivated employees
want to contribute and be a part of the
future. They have good ideas and would
like to share them.
MOTIVATE
& INSPIRE
Identify which
employees can
be motivated
and which
should be
removed
Create a fun,
challenging
environment
for employees
to thrive
Actively reward
and develop
employees with
recognition
Create a
culture of
accountability
They feel inspired when they can bring
ideas up with their manager or owner,
and they get an extra lift when that idea is
successfully put into practice.
Remove the unmotivated – an
unmotivated person who doesn’t meet the
acceptable level of performance will drag
the entire team down.
Motivated employees resent it when the
management team accepts and even
enables poor performance.
Moving underperformers out will actually
inspire motivated employees and improve
the customer experience and results
– which is after all the main goal.
DOUG FLEENER is president and
managing partner of Sixth Star
Consulting. Visit: dougfleener.com
We are
here to
help fulfil
your ideas
We are here to help you fulfil your ideas. As a
customer-focused Australian business, we aim
to service the needs of the retail and wholesale
jewellery industry by helping to centralise the
development of innovative products and concepts.
For our existing branded products, we offer
packaging, instore displays, care cards and coop
advertising alongside an active social media
campaign to supplement the story of the brand.
We are
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It’s been challenging, but lockdown has been a
helpful time to review the way we present products
on our selling platforms.
To help ensure your online showcase look beautiful
online, we have compiled our product images,
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Also offering credit facilities, resizing and repairs,
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OUR BRANDS
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BEST OF BUSINESS
Marketing & PR
A guide to keeping sales and marketing simple
When considering sales and marketing, businesses can unlock significant benefits and increase sales by
concentrating on the basics. THOMAS YOUNG reports.
The most successful sales and
marketing approaches are based on
common-sense and there is genius in
their subtle simplicity.
These approaches may first appear
obvious and easy to implement, as if
they are simply common knowledge;
however, common sense is not always
so common.
Here is a collection of marketing and
sales principles considered basic but
often ignored by businesses.
Let the market lead
It is very common for entrepreneurs
or established businesses to approach
their markets with an idea, product or
service they believe will be successful.
They may have conducted extensive
market research, consulted with
focus groups and sampled sections
of the public to amass data that
appears to give them the green light,
only to find that their idea, service or
product fails to take flight.
Market research is a measuring stick,
not the final outcome. As companies
develop new ideas, they must make
these ideas flexible to market changes
by following the leads of their target
markets.
How often do companies attempt to
push a product onto their customers
for little success?
Give away some secrets
Competitive advantage is a critical
component of marketing and sales
success. Yet, many companies keep
their competitive advantage a secret.
They do this out of the fear that
competitors will steal these ideas and
take away their market share.
In fact, the opposite is true. A clearly
stated competitive advantage increases
market share and drives more
customers to a business.
Operational secrets are one thing
but the benefits that separate one
business from its competitors must
be shared with customers if they are
to understand them.
For example, if one were looking for
an office cleaner, wouldn’t it be nice
A clearly stated
competitive
advantage
increases
market share
and drives more
customers to
a business...
If customers
don’t know
the features
and benefits of
the business,
they’re unlikely
to choose it
to know what makes one cleaning
company better than another?
Now, the cleaning company owner
might be thinking, “If we give away
the secrets that make us a great
cleaning company, our competition
will steal those secrets and put us
out of business.”
On the contrary, if customers don’t
know the features and benefits of the
business, they’re unlikely to choose it.
Closer to home, if a store excels at
jewellery repairs and remodelling then
it should boast about this service. Tell
customers why the business is so good
at repairs.
The rewards a business gains from
sharing its competitive advantage
overwhelms any minor gains that
might flow to competitors.
Love those customers
It is so hard to acquire, foster and
retain loyal customers in today’s
competitive markets that businesses
should never take them for granted.
Treat every customer like gold and
52 | July 2020

MARKETING
CHECKLIST
remove any obstacle that might deter a
consumer from doing business with the store.
my
dreams
Use market
research to
identify product
or service
niches
Promote
your point of
difference to
consumers
Make your
business
accessible
to potential
customers
I have known business owners who do not even
want to place their phone numbers on their
websites because they don’t feel they have time
to answer calls.
This is an example of a hurdle that customers
have to jump in order to contact those
businesses.
Why would a business make it difficult for a
potential customer to make contact?
Don’t let operational issues make it hard for
customers to shop.
Have a passion for customers and make an
extra effort to understand how they think and
why they buy.
bravery
good
luck
vitality
Give your
marketing
strategy enough
time to bear fruit
It’s about people
The people who implement a business’
marketing plans are the real key to that
business’ success.
direction
These people must develop the skills needed to
understand customers and keep the company
moving in the direction of meeting targetmarket
needs.
Teamwork is critical to the success of any
marketing plan as everyone in the business
usually sees themselves as marketing
professionals.
my
family
This includes not only making things easier
for the customer but also making operations
easier for the company.
Marketing takes time
Never give up. Marketing takes time and
managers who are committed to the project
will succeed as long as they give customers
what they want. Remember the infamous line,
“If you build it, they will come.”
Now make some modifications: “If you build it,
they will come… but only if you tell them where
to go and ensure you can service them.”
Be confident. Ask for help when necessary and
keep focus on meeting the needs of prospects
and customers.
In this way, businesses that can implement
common-sense sales and marketing that are
not so common will soon be on the road to
higher levels of success.
THOMAS YOUNG is CEO of Intuitive
Websites. He has more than 25 years’
marketing and sales experience.
Visit: intuitivewebsites.com
Offer:
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on orders over AUD$300 until 31 st July
As we continue to face uncertain times, we want to reach out
with wishes of love, hope and strength and remind you that Stow
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stowlockets | #preciousstories | stowlockets.com

BEST OF BUSINESS
Logged On
How to create outstanding blog content
It can be tough and time-consuming to generate fresh, original content for websites and blogs that will engage your
readers without being repetitive. BETH WALKER shares strategies that can help the process.
One of the hardest things about running
a blog for your company or website is
trying to come up with good topics for
your articles, especially when you don’t
have much time.
The instinct may be to skip publishing
but that’s not best because frequency
matters when it comes to blogs.
By utilising these five essential actions,
you can create outstanding blog content
consistently and still stick to your
publishing schedule.
Crappy first draft
American novelist Anne Lamott is famous
for promoting bad first drafts.
Her point is that you just need to get
something on paper.
“Writers write” is a quote I hear or
read at least once a day because it is a
crucial device that writers use to remind
themselves that their job is to, well, write.
My first drafts often take on an outline
form – I’ll consider the title and keywords
I need to target and, as I research, I’ll pull
out the ideas I want to highlight.
Once I determine the sections and
flow, I can start in the middle of an
article even when the introduction isn’t
coming together.
The point of the crappy first draft is to get
some words written.
You may delete them all later, but at least
you’ll have started!
Walk away
After you get something down, walk a
way. This might seem counterproductive,
but I promise that it works.
When writer’s block strikes, I’ll
sometimes take an actual walk. Getting
outside and doing something active
seems to be a perfect method for
inspiring new perspective and thoughts.
Use tools
While no tool is perfect, automated
grammar software program Grammarly
is my go-to tool so that everything I
write is checked by a second set of ‘eyes’
before I hit publish.
The free version of the tool is helpful
tool to catch spelling, punctuation and
My first drafts
often take on
an outline form
– I’ll consider
the title and
keywords I need
to target and,
as I research,
I’ll pull out the
ideas I want
to highlight
grammar mistakes, but the paid version
goes even further.
For example, Grammarly often highlights
that my drafts are “wordy”. This isn’t
surprising to me, but it is a gentle
reminder for me to edit my work to
improve clarity.
However, I don’t turn Grammarly on when
writing my first or second drafts.
I’ll turn it on once I’m on my final review
so that I can consider any suggestions
and edit accordingly. After this, I do one
final read-through before sending my
content to a proofreader.
Use a proofreader
As writers, we can find ourselves feeling
defensive about the editing process, but
the reality is that developing outstanding
content requires editing.
Even when you have a great handle
on your audience, it’s still important
to make sure that your ideas are
communicated clearly.
Remember that you’ve been focusing
on your article for several hours or even
54 | July 2020

THE WRITE
STUFF
1. Plan in advance
the topics and
deadlines for your
blog and website
posts, either
quarterly or yearly
2. Change up the
structure of your
writing process
– start with an
outline, rather
than trying to
write from scratch
3. Automate your
editing with
software programs
or browser
extensions
4. Let someone
else read what
you’ve written
before you upload,
ideally a paid
proofreader
5. Don’t
overcomplicate
your writing –
ensure your posts
use relevant
keywords and are
not too ‘wordy’
days at this point and have probably read
it through at least four times; it’s possible
you are not being as clear as you think.
Proofreaders are also great because they
can tell you when you have complicated
an explanation of a particular topic –
perhaps you are using five sentences
when only three are needed.
A great proofreader will provide
suggestions that clarify your content
without substituting their voice or
perspective for yours.
Consider all suggestions and always keep
the end goal in mind: you’re creating
outstanding content for your reader.
Create a content calendar
The best way to stay on track when writing
consistently is with a content calendar.
There are many benefits of having a
calendar, but my favourite is that you
only need to brainstorm subjects once
– as opposed to every time you sit down
to write.
With my personal blog, I plotted out a
year-long content calendar with titles
and subjects in January.
This might sound like an overwhelming
task, but I publish eight times a month
so I only needed to come up with 60 titles
and plot out the publishing dates.
When you work ahead, you give yourself
flexibility if life circumstances happen
to inspire new content; I have found that
prepared titles can be easily postponed
for the future, perhaps even the next time
I develop my content calendar.
Thinking about all of your blog articles in
one go might not work for everyone, but
I suggest you think further ahead than a
few weeks – quarterly calendars are the
ones I encounter most often.
By taking the time to brainstorm
keywords, titles and subjects, you can
jump into that ‘crappy first draft’ easily
and with a little bit of inspiration.
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BETH WALKER writes for US-based SMA
Marketing, which specialises in digital
marketing strategies for businesses.
Visit: smamarketing.net

My Bench
Matthew Alexander Crooks
Matthew Alexander Jeweller, Brisbane QLD
Age 29 • Years in Trade 9 • Training TAFE • First job Peter Gordon Jeweller Other Qualifications Certificate III in Business Management
SIGNATURE PIECE
AMARYLLIS BROOCH
APPRENTICESHIP PIECE
This was the first piece I made and designed myself, which is
why it still means a lot to me. It is named Amaryllis, which means
“to sparkle” in Greek and refers to a flower in the lily family.
The design took about a month to make, as each petal was
comprised of individual segments, which were fit together like
a puzzle and soldered. For the centre cluster I upturned an
amethyst and surrounded it with yellow gold and peridots to
create the bud of the flower.
This design, at the time, really stretched my skills but it was
really enjoyable and taught me a lot moving forward.
4FAVOURITE GEMSTONE My favourite stone is
an opal, as every piece is different, and it adds
to the uniqueness of a custom design. There’s
nothing better than seeing the fire in a high-quality
opal!
4FAVOURITE METAL Platinum is definitely my
favourite metal because of its malleability, high
melting point and ability to be easily fused. I also
appreciate the durability, colour and added weight
that it brings to a high-quality design.
4FAVOURITE TOOL Meiji EMZ-5 microscope.
Who doesn’t love seeing intricate components
under high magnification?
4BEST NEW TOOL DISCOVERY I do love my laser
welder.
4BEST PART OF THE JOB The entire creation
process from start to finish: meeting with
customers, creating a unique design, handmaking
a piece and seeing the customer’s reaction
when they open the box. I feel privileged to be able
to do so.
4WORST PART OF THE JOB Waiting for a piece of
jewellery in the pickle.
4BEST TIP FROM A JEWELLER During my
apprenticeship, my boss instilled a belief in me
to trust in my expertise and strive to build my
problem-solving ability. When making a piece,
before my boss would answer a question, I was
asked what I thought. This lesson is important for
custom handmade designs, as you are constantly
problem solving.
This one lesson has not only greatly shaped the
way I run my business but is also one of the
greatest life lessons I’ve learnt to date!
4BEST TIP TO A JEWELLER Work hard to keep
hand-manufacturing skills alive. A willingness to
work together and cherish these skills will go a
long way to building the industry and culture within
Australia. This can only benefit those passionate
about the trade and its future.
4BIGGEST HEALTH CONCERN ON THE BENCH
Protecting my vision would be number one – I
need to be able to see the finer points of a piece.
But anything I can do health and safety wise is
important.
4LOVE JEWELLERY BECAUSE It has a deep but
varied meaning to so many people. A custom piece
is a creative outlet for both the jeweller and the
client. If made well it can be passed down through
generations as a representation of the past and a
historical artefact.
56 | July 2020

OPINION
Soapbox
Jewellers should heed these
pearls of wisdom
There are numerous opportunities for jewellers in the pearl category, particularly in
providing care and maintenance services for strands and jewellery, writes JUNE MANN.
Have you thought of offering “pearl
services”? With the current economic
situation due to COVID-19, customers
may be less inclined to spend money
on new jewellery. But have you thought
of providing pearl care information to
customers, and services to “refresh”
customers’ pearl jewellery?
A lot of people have been sorting through
their house during lockdown, and they
may have come across some strands
of pearls.
Jewellers know that pearls need to be
much more carefully handled and cleaned
than other precious gemstones to keep
them in good condition.
Pearls do not ‘like’ light, heat or
excessively high or low humidity; metals
and other materials can scratch them
as pearls are generally rated 2.5-4.5 on
Mohs’ scale; and even perspiration can
damage a pearl’s delicate nacre.
Each time a pearl is worn, it needs
to be wiped gently with a very soft
cloth afterwards.
Do your customers know that? Maybe not!
I keep seeing pearls that have been
damaged through years of ‘abuse’,
including my own very old strand of
pearls which have been subjected to
everything from perfumes to shower
gel – and even hair-perming solution.
This strand was left powdery white by
my years neglect – mind you, this was
years ago, and before I developed my
interest in pearls!
For mild damage, jewellers can use
special cloths that will clean and refresh
the pearls. They are inexpensive and
quite effective. However, for more serious
damage, machinery may be necessary.
My damaged strand was too far gone to
refresh with the cloth, but was brought
back to life thanks to the re-polishing
machine from Pearl Science Laboratory in
Japan – and some dogged determination
on my side.
The result was quite impressive, however,
prevention is better than cure.
Jewellers could run pearl care workshops
for customers, online or in-store, as well
as offering ‘spruce-up’ services.
Restringing is another service you can
offer. You might think restringing pearls
is difficult, and I agree; doing the knotted
finish well is not easy at all and it requires
rather a lot of practice to get right.
You also need to do it regularly maintain
the skill.
However, there is a perfectly viable,
easy and long-lasting alternative that
produces a good result, and that is to
use a stainless steel, flexible bead
stringing wire (7x7 is preferable due to
its superior flexibility), tiny silicone
cushions, and click-in-place or screw-in
crimps – which look much better than
crimps you squash.
You could also replace the clasps with
something more fancy or user-friendly
while you re-string them too.
New clasps with fancy designs can really
bring a strand of pearls to life. Not only
that, but they also enable people who
struggle with small spring-ring clasps to
put the necklace on themselves.
With the right tools – which you probably
already have – parts and instructions,
almost anyone can learn to re-strand
pearls with wire in less than a day.
Another advantage is that good quality
stainless steel wires are very hardwearing
and simply won’t snap like
silk threads, especially when they are
Nylon coated.
The finished necklaces have a different
I keep seeing
pearls that have
been damaged
through years
of ‘abuse’,
including my
own very old
strand of
pearls which
have been
subjected to
everything
from perfumes
to shower gel
– and even
hair-perming
solution
look from using a thread-and-knotted
finish. n no way am I knocking the knotted
finish, however re-stringing with wire is
something you could easily offer in your
store, and it does not take a huge amount
of practice.
I am advocating it as something you
could do to gain a revenue stream
when the sales may be down due to the
economic situation.
Expanding from that, once you can
re-string pearls with wire, your options
also expand.
Combining a strand of pearls with other
types of beads is easy, and you could
even create a ‘new’ bracelet and necklace
set from the customer’s existing strand of
pearls by adding different types of beads.
So, to summarise, while the sale of new
jewellery may be down, you could quite
easily offer the following services:
• Pearl care workshops online or
in-store;
• Pearl cleaning and refreshing
services;
• Pearl restringing services, with or
without clasp replacement;
• Creation of new pieces using the
customer’s existing pearls, with
some additional beads/parts.
Hopefully, by offering helpful services,
you will retain customers.
Then when the economy improves,
your customers will choose your store
to buy their new pieces – pearls and
otherwise!
Name: June Mann
Company: Pearl Specialists
Position: Director
Location: Queensland, and Europe
Years in Industry: 6
58 | July 2020

Love isn’t cancelled,
it’s stronger than ever.
Our new ‘Momentum’ partnership provides
the necessary tools to help steer our jewellers
through this crisis with grace and gusto.
We stand together, and hold our community
close to our hearts.
The time is now… we choose love!
Discover the difference today.
Sound like we are made for you?
That’s because we are…
Josh Zarb - CEO
0448 416 070
josh@jewellerscollective.com
jewellerscollective.com
#independentjewellerscollective

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