Jeweller - March 2020

something that remains challenging
for many independent jewellers,” says
Josh Zarb, CEO of Australia’s newest
buying group, Independent Jewellers
Collective (IJC).
“Everyone in retail today needs to really
look at their marketing to ensure it aligns
with the image of the in-store shopping
experience and product offering.
“I am seeing a disconnect, sometimes,
between social media content and web
content versus the physical store. This
confuses the consumer and can lead to
lost sales.”
Davey agrees: “Bricks-and-mortar retailers
are suffering due to the online shopping
experience. With each store closure in
regional Australia comes a loss of brands
and items someone once purchased.
“This drives consumers online to
replenish those items – encouraging
online shopping in people who have
traditionally shopped locally.
“Customers are also disillusioned with
the overall retail experience that they
are receiving, as customer service seems
to be almost non-existent – especially in
chain and department stores.”
While there are many challenges facing
the local and international jewellery
industry, Webb is quick to address the
‘glass half-empty mentality’ that can
permeate any industry during tough times.
“Aside from all the difficulties, the real
danger I see is the danger from ourselves,
as the retailer, getting stuck in the
negative talk and becoming irrelevant to
the consumer. The consumer doesn’t need
to put up with mediocrity anymore,” Webb
explains.
“If you can’t do it, or whinge about it,
someone else will do it. You cannot afford
to get bogged down in the negative ‘speak’
that floats around our industry about
products, brands and even each other.
“A good example is lab-grown diamonds
– it’s a massive opportunity for many
retailers who are ready to embrace them.”
Webb doesn’t see the current retail
environment as an ‘us versus them’
fight: “It’s about transparency and giving
consumers a choice [with lab-created
diamonds]. Let’s get on with it and stop
trying to pull each other down!
“Our amazing industry needs better
cohesion and a few more smiles and high
fives, not constant beat ups. We have an
amazing industry that offers consumers
emotional engagement like no other can.
Make it count!”
Colin Pocklington
Nationwide Jewellers
“We recognised the
start of these difficult
trading conditions
back in mid-2016 and
started developing
strategies, training
and marketing
initiatives to assist
members.”
Charlie Davey
Leading Edge Group
“Rising rents and
increases in basic
business costs
continue to challenge
some retailers who
must deal with a
decrease in foot
traffic, due to some of
the bigger players...
pulling out of regional
centres.”
Carson Webb
Showcase Jewellers
“Aside from all the
difficulties, the
real danger I see
is the danger from
ourselves, as the
retailer, getting
stuck in the negative
talk and becoming
irrelevant.”
Josh Zarb
Independent Jewellers
Collective
“Everyone in retail
today needs to
really look at their
marketing to ensure
it aligns with the
image of the in-store
shopping experience
and product offering.”
GROUP TOTALS AUSTRALIA
TYPE NATIONWIDE SHOWCASE LEADING EDGE TOTAL
MEMBERS 322 138 89 549
STORES 371 184 124 679
GROUP TOTALS NEW ZEALAND
TYPE NATIONWIDE SHOWCASE LEADING EDGE TOTAL
MEMBERS 76 19 2 97
STORES 85 19 4 108
GROUP TOTALS INTERNATIONAL
TYPE
NATIONWIDE
FIJI
This is perhaps where the benefits of safety
in numbers becomes vital; membership to
a buying group offers a range of support
not readily available to individual stores.
Searching for solutions
SHOWCASE
VANUATU
MEMBERS 1 1 2
STORES 5 1 6
Zarb explains that there is no simple
answer to solve the challenges retailers
currently face.
“Unfortunately, there is no one ‘magic
bullet’ that will be the single solution to
thrive in today’s retail climate,” he says.
However, that doesn’t mean there is
nothing retailers can do to improve:“If
I had to get specific, I would suggest that
retailers really focus on identifying who
their customer is and start to ensure their
marketing targets them.
“I would recommend that, if they are
struggling, they reach out for assistance.
All the groups offer numerous support
services to assist their members.”
Pocklington says, “We recognised the
start of these difficult trading conditions
back in mid-2016 and started developing
strategies, training and marketing
initiatives to assist members in maintaining
profitability in a declining market.
“We have provided the information and
resources for members to implement the
seven strategies for retail jewellers that
we identified.”
In the new digital world, where consumers
are spoilt for choice of product and, more
importantly these days, choice of service
and customer experience, Pocklington
believes retailers should undertake more
marketing activity each month, across
TOTAL
Members and stores outside of Australia and New Zealand
TOTAL NUMBER
793 648
STORES
MEMBERS
more channels and platforms.
They should also look to offer different
merchandise with different price points
than their competitors, especially
chain stores.
He advises Nationwide members that
better inventory management can also
substantially improve profitability.
“Increasing the stock turn by 0.2 can add
$250,000 in cash to the average jewellery
shop over five years,” Pocklington says.
Webb has similar advice. “To deal with
the current retail environment we advise
two things. First, work your stock levels
smarter. Customers are wanting ‘the same,
but different’. Adjust now, or you’ll drown
in stock. The average store is sitting at 38
per cent of stock value over two years old.
“Secondly, a really pertinent question
to ask is, ‘Why me?’ Why should the
customer in your area, town, city or even
online, shop with you? Why are you any
different or special?
“If you can answer that honestly, and your
customer agrees with you, then you’re on
the right track indeed.”
Webb says many Showcase members who
focus on custom design and manufacture,
and specialise in fine jewellery, are
performing very well.
“Our retail numbers are 7 per cent up on
last year’s results for the last six months,
with diamond business now making up
more than 36 per cent of total sales.
I remember some eight years ago it was
only around 20 per cent. While keeping
it simple is the answer, simple isn’t
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