Jeweller - December 2020
• Survival lessons: Essential business tips learned from a year of upheaval • Full state of play: a comprehensive report into the Australian jewellery industry in 2020 • Show stoppers: standout jewellery pieces from local talents
• Survival lessons: Essential business tips learned from a year of upheaval
• Full state of play: a comprehensive report into the Australian jewellery industry in 2020
• Show stoppers: standout jewellery pieces from local talents
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Chains through the decade | STATE OF THE INDUSTRY<br />
<strong>2020</strong><br />
STORE COUNT<br />
Top 5<br />
Resilient<br />
Chains<br />
Zamels<br />
This structure further reduces the margin<br />
on already low-margin items.<br />
Michael Hill experienced a number of<br />
other ups and downs.<br />
TABLE 3: FINE & FASHION JEWELLERY<br />
CHAINS’ STORE COUNT DEC <strong>2020</strong><br />
The collapse of 343 fashion<br />
jewellery stores, along with<br />
Colette’s 64-store closure as a<br />
result of administration, leads to<br />
the question: why has the retail<br />
landscape changed so drastically<br />
over the past decade for the lower<br />
end of the market?<br />
Fine jewellery chains’ resilience<br />
If one considers the long list of apparel and<br />
accessories chains that have collapsed<br />
over the past five years – including Roger<br />
David, Marcs, Ed Harry, Rhodes & Beckett,<br />
Bardot, and Jeanswest, among others – as<br />
well as international chains which have<br />
withdrawn from the Australian market, such<br />
as Topshop, Esprit, Jigsaw, and Karen Millen,<br />
fine chains have been surprisingly resilient.<br />
Michael Hill Australia has expanded<br />
throughout the past decade, with 10 more<br />
stores in <strong>2020</strong> (154) than it had in 2010 (144).<br />
However, those figures belie the fact that<br />
the company went through major upheaval<br />
when it exited the US market in 2018, closing<br />
nine stores. At that time, the Australian store<br />
count had reached 172, which means that<br />
since 2010, when its store count was 144,<br />
it opened as many as 28 stores to February<br />
2018 – yet in the ensuing period it has closed<br />
18 stores (see chart page 40).<br />
9 additional stores<br />
since 2010<br />
3 additional stores<br />
since 2010<br />
No store closures<br />
since 2010<br />
Only one fewer<br />
store since 2010<br />
Only one fewer<br />
store since 2010<br />
The ASX-listed company decided<br />
to expand its ‘brand’ offering by<br />
establishing a new retail chain in 2014<br />
called Emma & Roe – named after<br />
founder Sir Michael Hill’s daughter<br />
Emma and his wife’s maiden name, Roe.<br />
The new stores attempted to specialise<br />
in ‘demi-fine’ charms, bracelets,<br />
necklaces, earrings and stackable rings.<br />
The concept was trialled for 18 months,<br />
beginning in five Queensland stores<br />
in 2013 under the Captured Moments<br />
brand. After receiving “encouraging<br />
results”, the company opened its first<br />
Emma & Roe concept store in Mackay,<br />
Queensland, in April 2014.<br />
Even though the number of Emma &<br />
Roe stores quickly increased, the venture<br />
ultimately proved unsuccessful. By June<br />
2018 then-CEO Phil Taylor announced<br />
the closure of all 36 stores.<br />
The ‘big boy’ of the Australian jewellery<br />
industry, James Pascoe Ltd (JPL), the<br />
owner of Prouds, Goldmark and Angus<br />
& Coote, remains the largest group, as<br />
it was in 2010. Since then it has had a<br />
net loss of only 11 stores, or 2 per cent,<br />
declining from 469 to 458.<br />
While the result is impressive, like<br />
Michael Hill, the company has<br />
rationalised its store mix and footprint<br />
across Australia. Prouds increased its<br />
presence by an impressive 47 stores<br />
since 2010 (from 217 to 264), yet 45<br />
Goldmark stores were closed (falling<br />
from 119 to 74) during the same period.<br />
Chain<br />
Stores<br />
Prouds 264<br />
Michael Hill 154<br />
Lovisa 152<br />
Pandora # 124<br />
Angus & Coote 120<br />
Colette 35<br />
Goldmark 74<br />
Wallace Bishop 38<br />
Zamels 33<br />
Shiels 40<br />
Mazzucchelli's 28<br />
Bevilles 24<br />
Salera’s 18<br />
Hoskings 16<br />
Gregory 15<br />
Silvershop 7<br />
Graham's 6<br />
Regency 6<br />
Anthonys 5<br />
Hardy Brothers 5<br />
TOTAL 1164<br />
# Pandora was not included on the Chain Store list in<br />
2010 as it was defined as a ‘brand-only’ store while<br />
*In order to emerge from administration, Colette has<br />
closed 64 stores this year, reducing its count from<br />
99 to 35.<br />
Prouds<br />
Angus & Coote<br />
CHART 2: PROUDS, ANGUS & COOTE AND GOLDMARK STORE GROWTH SINCE 2003<br />
Goldmark<br />
PROUDS STORES<br />
Stores<br />
2003 2007 2010 <strong>2020</strong><br />
ANGUS & COOTE STORES<br />
Stores<br />
2003 2007 2010 <strong>2020</strong><br />
Stores<br />
2003 2007 2010 <strong>2020</strong><br />
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<br />
ASX-listed Angus & Coote in a reverse takeover deal for $76 million in 2007. Prouds opened three new stores since July <strong>2020</strong>, and closed two Angus & Coote stores and two Goldmark stores.<br />
GOLDMARK STORES<br />
<strong>December</strong> <strong>2020</strong> | 39