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