Jeweller - October 2020

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY OCTOBER 2020
Balance of power
HOW RETAILERS CAN NAVIGATE LEASE
NEGOTIATIONS WITH LANDLORDS
Christmas special
LATEST OFFERINGS TO GET STOCK-READY
FOR THE HOLIDAY SEASON
Refined touch
BENEFIT FROM METAL REFINING IN
THE POST-COVID ENVIRONMENT

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Proudly distributed by
(02) 9417 0177 | www.dgau.com.au

Discover the new Christmas Collection from 29 th October 2020
Available in Pandora concept stores, participating stockists and pandora.net

HOW RETAILERS CAN NAVIGATE LEASE
NEGOTIATIONS WITH LANDLORDS
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY OCTOBER 2020
LATEST OFFERINGS TO GET STOCK-READY
FOR THE HOLIDAY SEASON
BENEFIT FROM METAL REFINING IN
THE POST-COVID ENVIRONMENT
OCTOBER MARCH 2020
Contents
This Month
Industry Facets
11 Editor’s Desk
14 Upfront
16 COVID-19 Update
20 News
37 ARA
33
34
39
74
92
NOW & THEN
Holdsworth Bros. Jewellers
10 YEARS AGO
Time Machine: October 2010
LEARN ABOUT GEMS
Jade Part I: Jadeite
MY STORE
Rebus Signet Rings
MY BENCH
Ryan Haddrell
51 FESTIVE SHOWCASE
Christmas stocking
Suppliers showcase the latest products and
services on offer in time for the gifting season.
39 LEARN ABOUT
Jadeite
72 Jewellers Showcase
Features
41
51
76
TENANCY NEGOTIATION
Seeing eye-to-eye: The retail rent review
HOLIDAY STOCK SPECIAL
Christmas showtime
94
STOCK MANAGEMENT
Liquid gold: Refining & COVID-19
SOAPBOX
Helen Thompson-Carter
80
INDUSTRY UPDATE
Coronavirus roughs up diamonds
Better Your Business
41 RENT REVIEW
New lease
on life
4Jeweller explores how
the COVID-19 pandemic
has tipped the balance
of power between retail
landlords and tenants.
86
88
89
90
91
BRAND STRATEGY
RICH KIZER and GEORGANNE BENDER explain the power of branding your store.
SELLING
Maximise your sales by avoiding time-wasters, advises BRIAN JEFFREY.
MANAGEMENT
A member of your staff could be a sales prodigy in disguise, writes DAVID BROWN.
MARKETING & PR
It’s time to create your post-COVID marketing strategy, says BARRY URQUHART.
LOGGED ON
ALLISON HALL explains how to create ads for Instagram that increase sales.
Balance of power
Christmas special
Refined touch
72 LOCAL TALENT
Jewellers
Showcase
4 Discover which jeweller made this piece.
FRONT COVER
The new Palloys website and
proprietary ordering system
makes it easier than ever to
manage all your jewellery
needs, from refining to casting,
CAD and finished jewellery.
palloys.com
October 2020 | 7

CLOSER TO NATURE
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Notable Gems includes a number of our Earth to Market
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+1 337-262-7700

Editor’s Desk
What is the future of jewellery?
Is the industry resilient because jewellery is an irrational purchase, or is the industry
robust because consumers are irrational about jewellery? ANGELA HAN explores.
Competition for the consumer dollar has
become ever-more increasing. In recent
years, experience-based purchases such
as luxury travel, fine dining and home
entertainment are some examples of
things that have become more important
to consumers, forcing many in the trade
to question jewellery’s place in the minds
of today’s consumer.
All the while, pandemic-induced
unemployment figures keep rising and
belts tighten as we brace ourselves in
for recessionary times. This begs the
question: What is the future of jewellery?
After all, jewellery is largely just ‘rock and
metal’. Indeed, some would say it’s an
irrational purchase; there have been times
of famine in history where a bowl of rice
was seen as valuable as gold bullion.
In an era where consumer satisfaction is
measured by a product’s performance,
usefulness and eco-friendliness, justifying
a jewellery purchase can feel irrational
and gratuitous, particularly during a
recession.
So it would make sense if people stopped
buying jewellery and jewellers shut-up
shop ... right? Wrong.
When compared to other retail categories
there’s ample evidence that many fine
jewellery retailers have remained resilient
during the COVID pandemic and economic
crisis. Globally, Pandora and Tiffany stock
prices are on the upwards trajectory,
while Hong Kong retailer, Chow Tai Fook,
has seen its shares rocket back to its
2018 heydays.
The shares of both Michael Hill
International and the US chain, Signet
Jewelers, are recovering since the huge
sell off in the depths of the crisis and
LVMH stock prices are back to what they
were last November.
Closer to home, Retail Edge, the jewellery
management consultancy firm, released
reports of increased sales across 450
customers in Australia and NZ.
In fact, there was a 23 per cent increase
in September sales compared to last year,
despite Victoria remaining on Stage 4
lockdown.
While the number of items purchased fell,
the data shows that the value of each sale
increased, which indicated that consumers
weren’t too shy about pandemic spending.
Given the current economic conditions
and consumer sentiment, this is no
ordinary feat.
Recent trends in the increase of jewellery
repairs, along with valuations and
remodelling of a family heirloom, are not
new. The jewellery trade has thrived in
tough times owing to this work and which
few other retail categories can achieve,
with such valuable custom and unique
foot traffic.
It helps that jewellers can also smelt
unused stock - a luxury not afforded other
retail categories! These behaviours and
trends have contributed to the survival of
jewellers for hundreds of years.
Indeed, Jeweller’s own State of the Industry
report revealed that Australian fine jewellery
chains have remained resilient over the past
decade despite the saturation of fly-by-night
fashion jewellery chains.
In fact, Australia is home to more
than a dozen jewellers that have long
celebrated their centenary and are older
than Chopard and Bulgari. In the past
100 years, empires and conglomerates
have come and gone, but many local fine
jewellery retailers are still standing today.
So what makes fine jewellery so resilient?
By default, humans yearn to be
surrounded by things that are beautiful,
unchanging and meaningful. This
sentiment seems to be magnified in
turbulent times, which may very well
explain our attraction to fine jewellery that
is an object of permanence flying in the
face of modern-day impermanence.
From a signet ring engraved with the
family crest to a grandfather’s old wind-up
watch, these portable totems take on
significance with each new generation.
In turn, they often increase in
In the past
100 years,
empires and
conglomerates
have come
and gone, but
many local
fine jewellery
retailers are still
standing today.
sentimental value, something that
cannot be measured in dollars.
For example, I recently heard a story about
a specialist watchmaker who was asked to
quote a job to refurbish a customer’s greatgrandfather’s
pocket watch.
Given that the watch had no brand,
was in dire need of major repair, and
parts would not be easily accessible,
the retailer quoted the work at around
$5,000, believing that the owner would
not proceed with the job given that the
watch was only ‘worth’ $30.
Much to the watchmaker’s surprise, the
repair job was approved, and the owner
was ecstatic with the final outcome.
I did say jewellery can be irrational!
While Australia’s population generally
has a high discretionary income, there
is a cultural shift towards recycling and
recycled products, in an attempt to curb
consumption. While this may not bode
well for lower-priced fashion jewellery,
it could be the perfect opportunity to
educate and encourage consumers about
the benefits of locally manufactured,
bespoke fine jewellery.
If there is anything we have learned from
COVID - especially through lockdown
periods - it is that we greatly value
human contact and emotion - these
things only become obvious when you
don’t have them.
So people are looking to make more
meaningful purchases, have more
memorable experiences, and build
stronger relationships. For centuries,
jewellers have been at the forefront of
assisting with these human desires.
COVID will demonstrate that this won’t
change, and may even strengthen these
desires, as we now know what we miss.
From where I’m standing, the future
of the jewellery industry is bright.
Angela Han
Publisher
October 2020 | 11

Upfront
#Instagram hashtags to follow
Alpha Order
#bridaljewelry
1.5 MILLION POSTS
#clusterring
30,930+ POSTS
#indicolite
111,497+ POSTS
#jewelrylove
721,290+ POSTS
Stranger Things
Weird, wacky and wonderful
jewellery news from around the world
#conflictfree
50,382+ POSTS
HISTORIC GEMSTONE
Napoleon &
Josephine
Ring
4One of the most iconic engagement rings of all time is
the ‘toi et moi’ ring given by Napoleon Bonaparte to his fiancée,
aristocrat Jósephine de Beauharnais, in 1796. The simple gold
ring features a 1-carat pear-shape white diamond and sapphire.
The ring remained in the Bonaparte family until 2013, when it was
auctioned in Paris by Osenat. It was sold for $US1.17 million –
more than 50 times the high estimate of $20,000.
The Facebook
and Deloitte
consumer trends
report, Digital
Tools in Crisis and
Recovery, was
published on 17
September 2020.
#diamondsareforever
486,845+ POSTS
#earrings
29.8 MILLION POSTS
Digital Brainwave
#layerednecklaces
131,710+ POSTS
#mensjewelry
817,575+ POSTS
#weddingring
3.1 MILLION POSTS
4Facebook has released the findings of
a new study it conducted with Deloitte,
examining the impact of COVID-19 on
consumers’ purchasing patterns and use
of digital tools across 13 markets, including
Australia, New Zealand, the UK, and the US.
Notably, 40 per cent of those surveyed had
increased their use of social media and online
messaging for business recommendations.
Of those who had started shopping at new
businesses, 73 per cent said at least one was
a small business, while 31 per cent planned
to increase their spending with small, local
businesses after the pandemic.
Celebrity Style
4Red carpet glamour had a welcome
return with the Venice Film Festival, as
stars showcased the most prestigious
fine jewellery creations. US supermodel
Taylor Hill (above) stole the show in
Chopard’s ruby suite.
Trend Spotting
4A classic staple of men’s jewellery,
the signet ring is having something of
a renaissance. An ideal gift for men of
all ages, the ring is traditionally crafted
from gold and features a family seal or
coat of arms (above). However, it can be
adapted to suit modern, youthful tastes
– think sterling silver with a skull,
animal, or minimalist logo.
Getty Images
Signet ring: Circle, Melbourne
Can-do attitude
4A US jeweller’s unusual
jewellery pieces – which are
made entirely from tin cans
– have been thrown into the
spotlight after being featured
in Oprah Winfrey’s magazine.
Thomas Paul Althaus started
his jewellery business, Canned
Goods, seven years ago after
creating a set of earrings and
a bracelet for his wife, using
the traditional 10th wedding
anniversary gift of tin.
Fast (food) fashion
4Tasmanian jeweller Emma
Bugg has revealed a brooch
she made from a real fast-food
hamburger is yet to decompose
after four years in her store.
Bugg set the burger – which
has since shrunk by about 10
per cent – in silver claws. “The
lettuce has changed colour to
brown, but aside from that it
looks pretty much the same [as
when I bought it],” she said.
Diamond discovery
4A US man has unearthed the
second-largest diamond ever
found at the Crater of Diamonds
State Park in Arkansas, after
initially mistaking the 9-carat
stone for a piece of glass.
“I almost didn’t have [staff] check
my finds, because I didn’t think
I had found anything,” Kevin
Kinard said. The park opened in
1972; more than 200 diamonds
are found there each year.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
Published by Befindan Media Pty Ltd
Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 64 930 790 434 | Phone: +61 3 9696 7200 | info@jewellermagazine.com
Publisher & Editor Angela Han angela.han@befindanmedia.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.

Proudly distributed by
(02) 9417 0177 | www.dgau.com.au

COVID-19 Update
62.6%
increase in online
spending year-on-year
during July 2020
* National Australia Bank Online Retail Sales Index,
3 September 2020
$3 billion
Additional support package
announced for Victorian businesses,
including $15.7 million in export
recovery and funding for SMEs
to access digital programs
19 October
Earliest date for Melbourne
Step Three restriction easing,
allowing all retail to reopen
MATT COMYN
CEO, COMMONWEALTH
BANK OF AUSTRALIA
“We face a long and uneven
recovery... One of the biggest
challenges for Australia in
2021 and beyond will be how
effectively we can move [on]
from the substantial and I think
very effective income support
that’s been in place.”
JOANNA MASTERS
CHIEF ECONOMIST,
ERNST & YOUNG
“Not only have we had a smaller
contraction than comparable
economies, but our economic
activity has outperformed
where the correlation between
the stringency of the lockdown
and GDP would suggest.”
42%
of retail businesses say they
would not have survived
without JobKeeper *
* Sensis September Business Index
Retail turnover increased
6.9% in August 2020
compared with August 2019
* Australian Bureau of Statistics, Retail Trade
Preliminary report, 23 September 2020
December
A ‘trans-Tasman
travel bubble’ between
Australia and New
Zealand could be formed
Treasurer Josh Frydenberg unveiled a
suite of insolvency reforms to protect small
businesses from the fallout of the COVID-19
pandemic... [allowing] insolvent companies
with less than $1 million in liabilities to
continue to trade while developing a plan
to restructure their debts.
PAUL ZAHRA
CEO, AUSTRALIAN
RETAILERS ASSOCIATION
* Smart Company, 24 September 2020 “We remain deeply concerned
about the closure of [Melbourne]
retail until mid-to-late October
at the earliest – that is simply
too close to Christmas trading
allow viable retail activity.”
Brisbane businesses
are more confident
about the future than
any other capital city
Sensis August Business Index
to
*
KPMG
CIBJO
De Beers
The webinar was
hosted by KPMG’s
Jane Cohen, Matt
Darby, and James
Stewart, with guest
Anthony Heraghty,
CEO Super
Retail Group.
4Professional services firm
KPMG has made its September
webinar, Retail 2021: Home,
But Not Alone!, available to
rewatch online.
The session explores four key
elements influencing retailers,
such as commercial leases,
JobKeeper, and insolvent
trading reforms, as well as the
long-term changes to the retail
sector and shopping behaviour
as a result of COVID-19.
David Kellie, CEO
Natural Diamond
Council, and De
Beers executive
Stephen Lussier
contributed to the
panel discussion
in the webinar.
4The latest edition of
CIBJO’s Jewellery Industry
Voices webinar series,
‘Cultivating Demand for
Natural Diamonds: How
to Do It & Who Should
Pay’, which took place on 1
October, is now available to
rewatch online.
It explores the effectiveness
of generic industry
marketing of diamonds – a
particularly important factor
in the lead-up to Christmas.
The Diamond
Insight Flash
Report #4 notes
that consumers
are showing signs
of optimism,
alongside a need
for reassurance.
4Diamond giant De Beers
has released the fourth
edition of its monthly
Diamond Insight Flash
Report series to identify
trends for the upcoming
holiday gifting season as
well as patterns of
consumer behaviour.
The report includes survey
results from 500 US
consumers and diamond
jewellery trend forecasting
by UK firm Adorn Insight.
16 | October 2020

Signature
Style
WORTH & DOUGLAS
PO Box 866, Tullamarine, VIC 3043
@wdrings | 03 9338 0091 / 1800 006 388 | sales@worthdouglas.com.au | www.worthdouglas.com

Created by members, for members
SHOWCASE
JEWELLERS
WE’RE HERE FOR YOU
Showcase Jewellers was established in 1981 by a group
of independent Jewellers who came together to
improve their buying power in the industry.
Today, Showcase Jewellers is a powerhouse of resources
essential for the independent jewellery retailer, especially in
the area of technology.
Our members have so many resources at their fingertips to
support the running of their business:
• Training
• Marketing
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• Human resources
• Central billing
• Financial planning
• Exclusive in-house
brands
• Conferences
• In-house loose diamond
inventory, both mined
and lab grown.
• Stock ranging
• Extensive supplier
base at both local and
international level
including the latest
fashion brands.
Alongside these resources, you have the support of an
experienced and engaged head office team, as well as
your fellow members. The Showcase Jewellers Group
provides a community and network in which your business
is supported and will positively thrive. We are enormously
proud of our community and hope to welcome you into
our family soon.
TOP SIX BENEFITS
NO JOINING FEES AT ALL
FREE WEBSITE SET UP
Your own website with ownership rights.
We will move or create your website on
your behalf, at no charge.
THE BEST SUPPLIER DISCOUNTS
Our supplier discounts go directly to our
members.
EXPERIENCED HEAD OFFICE STAFF
Here to support you every step of the way.
IN HOUSE MARKETING AGENCY
Access to marketing resources,
campaigns, digital assets, graphic design
and more.
EXTENSIVE RANGE OF LOOSE
DIAMONDS
In-house loose diamond inventory, both
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Join the Showcase Family
Email: enquiries@jimaco.com | Phone: (02) 8566 1800 | Visit: www.showcasejewellers.com.au

Our exclusiв diamd brands
SHOWCASE
JEWELLERS
SWAROVSKI CREATED
DIAMONDS
Over the past 125 years, Swarovski has always lived by the values of their founder Daniel Swarovski, and this includes offering a
customer experience equal to the brilliance of their stones. The Swarovski Created Diamond program is your guarantee of this
same spirit, trust, and quality. Swarovski Created Diamonds is exclusive to the Showcase Jewellers Group in Australia.
Remarkably beautiful and naturally captivating, Dreamtime Australian
Diamonds originate from the world renowned Argyle Diamond Mine, located
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Every Diamond is tracked so you can be assured your Dreamtime jewellery
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PASSION8 Diamonds are precision cut in a way that
creates exactly eight perfect hearts and eight perfect
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Interested in these exclusive diamond brands? Contact us today:
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News
Dates announced for early
2021 jewellery Trade Days
Jewellery businesses integrated into new
Palloys ordering and account management
means our B2B clients now have
the convenience of ordering everything they
need from one company, on one account, with
one statement.”
Multiple employees to make orders through
each business account, improving order
tracking and accountability.
A series of Capital City Trade Days are set to take place in
Brisbane, Sydney, Adelaide and Perth next year, as part of
Expertise Events’ 2021 jewellery industry schedule.
In Expertise Events, the organiser of the
International Jewellery & Watch Fair
(IJWF), has released details of its 2021
Capital City Trade Days which will take
place in February and March.
As previously reported by Jeweller, the
Trade Days were developed to help the
jewellery industry reconnect following the
cancellation of the 2020 IJWF, as well as
provide retailers with access to a range
of suppliers without travelling interstate.
Described as “intimate and local focused
events”, the Trade Days offer suppliers
an “easy and affordable opportunity to
connect with local retailers”.
Gary Fitz-Roy, managing director
Expertise Events, said, “We recognise that
in 2021, not everyone will want to or be
able to travel, nor have the time to do so.
“Starting at the beginning of February,
we will have a compact Trade Days format
– two days of trade, plus networking
opportunities. People want to get back
to reconnecting and rebuilding, and this
format is cost-effective for manufacturers,
distributors, and retailers.”
While the Brisbane and Sydney events
will focus on jewellery, the Perth and
Adelaide Trade Days will also include a gift
component to reflect the different needs
of these markets.
Victorian retailers will have the opportunity
to view new products at the dedicated
Jewellery Pavilion within the Melbourne
Gift & Lifestyle Fair, which is scheduled
for 6–8 February 2021 at the Melbourne
Exhibition Centre.
A Jewellery Pavilion will also be present
at the Gold Coast Gift & Lifestyle Fair on
3–5 July 2021, and at the Sydney Gift &
Lifestyle Fair on 18–21 September 2021.
Next year’s IJWF will be held from 28–30
August, themed ‘Be Reconnected’.
People want
to get back to
reconnecting
and rebuilding,
and this
format is costeffective
for
manufacturers,
distributors,
and retailers
GARY FITZ-ROY
Expertise Events
2021
Trade Day
Dates
Brisbane
13–14 February
Brisbane
Convention Centre
Sydney
20–21 February
ICC Sydney
Exhibition Centre
Perth
13–14 March
Perth Convention
Centre
Adelaide
20–21 March
Adelaide
Convention Centre
The new Palloys digital platform provides “endto-end”
services, from diamonds to refining.
Jewellers can now order products and
services from Palloys, AGS PJW, Regentco
and A&E Metals through a ground-breaking
new ordering and account management
platform.
The platform can be accessed through the
redesigned Palloys website and allows
jewellers to place orders for custom finished
jewellery, wedding rings, fabricated metals,
findings, gemstones, and metal refining
through one password-protected account,
invoiced under the Palloys name.
Alison Habbal, assistant operations manager
– jewellery at Palloys, told Jeweller, “Bringing
all of our companies together as Palloys
Pandora to close Sydney flagship store
as lease renegotiations fail
After 10 years, Pandora has opted not to renew
the lease on its flagship store in Sydney’s Pitt
Street Mall.
After failing to reach an agreement with
landlord Scentre Group, Pandora Jewelry
will close its Westfield Sydney flagship store,
located in the prestigious Pitt Street Mall
retail precinct.
The company opted not to renew its lease
on the premises – due to expire at the end
of September – following lengthy discussions
with Scentre, which is Australia’s largest
retail landlord and the operator of Westfield
shopping centres.
Pandora has occupied the site since 2010.
Steven Kratsas, marketing manager – jewellery
at Palloys, said, “This new interface took two
years to design and implement, and is intended
to make Palloys a ‘one-stop destination’ for all
jewellery needs and services.
“It is part of our commitment to leading the
industry in innovation and efficiency, and
upholding the highest possible standards
of service and quality,” he added.
One of the most notable upgrades to the new
ordering system is an ‘instant quote’ feature
for finished jewellery, CAD designs and prints,
fabricated metals, findings, and refining
through ABC Refinery, which holds triple
accreditation from the London Bullion Market
Association, Shanghai Gold Exchange and the
New York Commodity Exchange (COMEX).
CONTINUED ON PAGE 30
David Allen, general manager of the Pandora
Pacific division, said, “Over the past six-toeight
weeks we have had extensive discussion
with Scentre Group in an attempt to come
to a mutual agreement in the lease
renegotiation process.
“Unfortunately these discussions did not lead
to a satisfactory outcome for the business and
as such we have made the decision to end the
tenancy at term and close.”
He added, “It was a tough call and certainly
not one that was arrived at lightly, but without
due consideration from Scentre Group, the
trading conditions at Pitt Street Mall are
untenable and unjustifiable for the wider
organisation.”
A 2019 report by commercial real estate
services firm Cushman & Wakefield found
that Pitt Street Mall ranked among the
top 10 most expensive shopping strips
internationally, alongside New York City’s Fifth
Avenue, New Bond Street in London, Tokyo’s
Ginza, and the Champs-Élysées in Paris.
CONTINUED ON PAGE 30
20 | October 2020

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in the world by Alexa, the global ranking system
for analysing website readership.
Your own Jeweller is one of the most widely read
jewellery publications in the world and, according to
Alexa, the daily time spent on jewellermagazine.com
is more than 20 minutes while other business-tobusiness
websites average between 2–5 minutes
in engagement.
At the same time, Jeweller’s social media presence
dominates and our eMags boast 12 million reads.
It’s our commitment to excellence in reporting, high
quality presentation, and reader engagement that sets
us apart, which is why we say: Follow the Reader!
* Alexa Global Ranking statistics as at 4 October 2020.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY

News
MORE BREAKING NEWS
JEWELLERMAGAZINE.COM
In Brief
No reserve for 102-carat
flawless diamond
4Auction house Sotheby’s has
auctioned a 102.39-carat D-flawless
diamond without a reserve price.
The stone is one of only eight white
diamonds of that quality and size ever
offered at auction. The diamond was
cut and polished from a 271-carat
rough from De Beers’ Victor Mine in
Canada, and previewed in Shanghai,
New York, and Taipei before being
auctioned in Hong Kong.
NZ jeweller shows at
New York Fashion Week
4Christchurch-based jewellery
designer Sonia Therese was one of
just 10 jewellers chosen to showcase
her work at New York Fashion Week
in September. “I think the technical
term was ‘gobsmacked’,” Therese
said of being selected. Her pieces are
largely made from recycled materials.
“The jewellery is embeded and
infused with soul,” she added.
Movado signs deal with
Calvin Klein
4Movado Group has signed a
five-year licensing agreement with
Calvin Klein to create a new line of
watches and jewellery, to commence
in January 2022. Calvin Klein watches
were previously manufactured by
Swatch Group. However, the Swiss
company chose to let its licensing
agreement expire in October 2019
after 22 years, citing “turbulence and
uncertainties” at Calvin Klein.
Israel, Dubai bourses
sign historic agreement
4The Israel Diamond Exchange
(IDE) and the Dubai Diamond
Exchange (DDE) have signed a
collaboration agreement during
a virtual conference in order to
strengthen the trade relationship
between the two bodies.
Ahmed Bin Sulayem, executive
chairman DMCC and chairman DDE,
said, “This agreement paves the way
for further collaboration across a
range of commodities in what is a
very exciting time for development in
the region.”
From the mining
and refining
of the gold, to
the spinners
and goldsmiths
involved
in its final
construction,
the Melbourne
Cup has been
produced locally
from start to
finish taking
over 250 hours
ABC Bullion
Our business
model is simple,
it is transparent,
and ensures
we give our
retail partners
something
back for
supporting IJC
JOSH ZARB
Independent
Jewellers Collective
ABC Bullion to make 2020 Melbourne Cup
trophy from Victorian gold
The 2020 Lexus Melbourne Cup trophy contains 1.65kg of 18-carat gold and valued at more than $200k.
Ahead of the 2020 Lexus Melbourne Cup on 3
November, ABC Bullion has announced that
the gold used to manufacture the trophy for
the racing event will be sourced entirely from
Victoria, for the first time in its history.
Valued at more than $200,000, this year’s
trophy – which is also known as the ‘Loving
Cup’ – contains approximately 1.65kg of
18-carat gold mined from Kirkland Lake
Gold’s Fosterville Mine, located about 30km
east of Bendigo.
This year marks the 160th anniversary of
the ‘race that stops the nation’, and also
marks one of the most difficult periods in
recent history for the people of Victoria due
to the ongoing COVID-19 crisis.
A statement from ABC Bullion said, “This year
has proven one of the most challenging yet.
New buying group reaches another
membership milestone
Australia’s newest jewellery industry buying
group, Independent Jewellers Collective
(IJC), has built its membership to 50 stores,
surpassing its target for the year.
IJC was formed in January 2020 and
launched just as the COVID-19 pandemic
began to impact the Australian market.
Its business model promised to give
independent retailers more flexibility than
a traditional buying group, with a focus
on custom-built digital platforms and
“boutique” service.
Josh Zarb, CEO IJC, told Jeweller, “We have
been so humbled by interest in our group.
It is genuinely exciting to have been able to
build such a tight community of retailers
and supply partners so quickly. We had set
ourselves a target to be at 50 stores by the
end of June 2021 and obviously, we are well
ahead of this timeline.”
More than ever it is important to hold on to
the familiar, to our traditions.
The 2020 Lexus Melbourne Cup is a beacon
of resilience, when faced with hardship
and adversity.
“From the mining and refining of the gold,
to the spinners and goldsmiths involved in
its final construction, the Melbourne Cup
has been produced locally from start to
finish taking over 250 hours.”
To mark the occasion, ABC Bullion – which
is part of the Pallion group of companies
and has manufactured the Melbourne Cup
since 2016, as part of a deal with Victoria
Racing Club – has released a video about
the creation of the 2020 Cup and its
unique significance.
Zarb said the main driver of membership
with IJC was the “sense of community” and
the experience of the IJC team within the
jewellery industry.
“Retailers are looking for modern marketing
initiatives and a more upmarket look and feel
in external advertising, and this is something
we are supporting in all our campaigns.
“ Our business model is simple, it is
transparent, and ensures we give our retail
partners something back for supporting IJC,”
he explained, adding, “Our technology, our
simplicity of communication, and our bespoke
platforms are some of our biggest strengths.”
Zarb said more than 114 stores had
approached IJC to enquire about its services.
“It is important for us and our existing
retailers to continue to partner with proactive
CONTINUED ON PAGE 32
22 | October 2020

2020 Argyle Tender Diamonds
revealed ahead of mine closure
A USTRALI AN AR G YLE PINK D I A M O NDS
The 2020 Argyle Tender has been named ‘One Lifetime, One Encounter’ and
comprises 62 loose diamonds and 12 ‘Petite Suite’ sets. Image: Rio Tinto
Rio Tinto has unveiled the 2020
Argyle Tender of pink, red, and
blue diamonds, which has this
year been named ‘One Lifetime,
One Encounter’.
Described as “one of the final
collections” of Argyle Mine stones
ahead of its closure at the end of
2020, this year’s Tender comprises
62 loose diamonds, weighing a total
of 57.23 carats. In addition, 12 sets
of small pink, red, blue and violet
diamonds, collected over the past
five years, will also be offered.
Referred to as ‘Petite Suites’, the
diamonds weigh 13.90 carats in total.
Of the loose stones, this year’s
Tender features six named ‘hero’
diamonds including the Argyle
Eternity – the largest fancy vivid
round brilliant diamond ever
offered at the Tender. Weighing
2.24 carats, the Argyle Eternity
is vivid purplish pink.
Arnaud Soirat, chief executive Rio
Tinto Copper & Diamonds, said,
“Rio Tinto’s Argyle Mine is the first
and only ongoing source of rare
pink, red and violet diamonds in
the world. We have seen, and
continue to see, strong demand
for these highly coveted diamonds,
which together with extremely
limited global supply, supports the
significant value appreciation for
Argyle pink diamonds.”
Commenting on the One Lifetime,
One Encounter collection, Steve Der
Bedrossian, CEO SAMS Group –
which specialises in Argyle diamonds
– said, “The Argyle Tender is always
remarkable and the mine keeps
giving us extraordinary diamonds.
“This year’s Tender is notable as the
‘hero’ stones include the largest vivid
round brilliant cut, the largest vivid
pear shape, the largest purple-pink,
and also a trio of very rare blue and
violet diamonds.
“We have seen, and continue
to see, strong demand for these
highly coveted diamonds, which
together with extremely limited
global supply, supports the
significant value appreciation
for Argyle pink diamonds.”
ARNAUD SOIRAT
Rio Tinto
“And of course, this year feels even
more significant as there is the sense
that this will all be history very soon
– in the near future, we will be talking
about ‘the Argyle days’,” he added.
Harsh Maheshwari, director Kunming
Diamonds, shared similar sentiments,
telling Jeweller, “It has been quite an
emotional journey for us, from our
first Tender less than a decade ago,
to acquiring the Everlastings
Collection and being appointed an
Argyle Pink Diamonds Authorised
Partner [this year]. Knowing that we
won’t be able to have the opportunity
of seeing such a global phenomenon
in the near future as the mine shuts
is beyond belief.
CONTINUED ON PAGE 30

LVMH and Tiffany & Co. deal
collapses; court battle looms
LVMH has withdrawn from its $US16.2 billion acquisition of Tiffany & Co., with the
US company initiating legal proceedings in response.
Watches: Ellie II
Proudly distributed by
Tiffany & Co. has begun legal
proceedings against Moët Hennessy
Louis Vuitton SE (LVMH) following
the French luxury conglomerate’s
withdrawal from its $US16.2 billion
acquisition deal, with the two luxury
behemoths set to appear in court on
5 January 2021.
The international jewellery company
commenced legal action on 9
September, the same day LVMH
released a statement confirming
that it will not proceed with the
takeover, which was to be the most
expensive in its history, surpassing
the $US13 billion acquisition of
Christian Dior in 2011.
LVMH alleges Tiffany & Co. suffered
“material adverse effect”due
to the COVID-19 pandemic and
mismanaged the crisis.
Material adverse effect is known
as material adverse change under
Australian law, and refers to specific
matters that have a “measurable
financial impact above an agreed
threshold, such as a negative
impact on earnings”, according to
law firm MinterEllison.
A material adverse change clause
usually excludes negative impacts
resulting from general economic
or industry conditions.
Tiffany & Co. recorded a loss of
$US33 million for the first half of
the year, but made a $US32 million
profit for the three months to 31
July, compared with $US136 million
for the same period in 2019.
In addition, Jean-Yves Le Drian,
French European and Foreign Affairs
Minister, reportedly wrote to LVMH
on 31 August requesting that it delay
the final closing date of the Tiffany
deal until after 6 January 2021 in
order to “dissuade” US authorities
from imposing further import duties
on French luxury goods.
Such a delay would breach the
Merger Agreement, which stipulates
a closing date of no later than 24
November 2020. In addition, the
LVMH statement notes that Tiffany
& Co. separately requested a further
extension of the final closing date to
31 December 2020.
Tiffany & Co. filed suit in the Court
of Chancery of the State of Delaware
and “seeks, among other things, an
order requiring LVMH to abide by
its contractual obligation under the
Merger Agreement to complete the
transaction on the agreed terms”.
It claims LVMH failed to honour
its obligations, including filing
international regulatory clearances.
It also refutes assertions that it has
breached the Merger Agreement
and that the Le Drian letter is a valid
reason for LVMH to withdraw.
Roger N Farah, chairman Tiffany
& Co., says, “We regret having to
take this action but LVMH has left
us no choice but to commence
litigation to protect our company
and our shareholders.
CONTINUED ON PAGE 32
02 9417 0177 | www.dgau.com.au

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News
Michael Hill announces $3.1
million profit for the year;
launches new digital brand
Michael Hill International has released its financial
results for FY19-20, recording a modest profit of $3.1
million – a decline of 81 per cent, largely attributed
to the COVID-19 pandemic. Revenue was $492.1
million, compared with $569.5 million in FY18-19,
while same-store sales increased 2.7 per cent,
largely driven by New Zealand and Canada.
Daniel Bracken, CEO Michael Hill International,
described it as “a year of two halves”, noting that
sales had steadily improved until the widespread
lockdowns beginning in March 2020.
Michael Hill stores across Australia, New Zealand,
and Canada were temporarily closed for between
five and 13 weeks; 17 were permanently closed
over the course of the financial year, with one new
opening. Michael Hill International operated 290
stores as at 30 June 2020.
“While the COVID-19 closures had a severe impact
on headline sales and profit, I was particularly proud
of the determination, resilience, and agility of our
team across the business through the shutdown and
temporary closure periods,” Bracken said.
“The re-opening of our store network saw pleasing
sales recovery despite lower foot traffic, and a return
to strong margin performance against [the] prior
year. This reflected the importance of the strategic
progress we have made over the last 12 months
and the dedication of our team members and loyal
customers,” he added.
Notably, e-commerce increased by 54.7 per cent to
a record $24.7 million, compared with $16 million in
FY18-19. Digital sales now represent 5 per cent of total
sales, an increase from 2.8 per cent in the previous
financial year.
Branded collections also performed well,
representing 37.5 per cent of sales – an increase
from 32.5 per cent in the previous year.
Notably, Michael Hill has since launched Medley
Jewellery, a separate brand only available online
from its own website, and focused on young female
self-purchasers.
Vanessa Brennan, chief brand and strategy officer
Medley Jewellery, said, “There was an opportunity in
the market among a growing customer audience who
have a strong desire for stylish, quality and versatile
jewellery. They want affordable and on-trend pieces
that can be worn across a number of occasions.”
Medley Jewellery currently has five collections
– Alpha Female, The Foundations, Zodiac Hack,
Pearls That Pop and Etched Memories – crafted in
silver, plated 18-carat gold, plated rose gold, and
solid 10-carat gold and priced from $50–$300.
Luxury watch and jewellery box
brand finds new distributor
An image from the Wolf ‘My Legacy’ campaign.
Duraflex Group Australia (DGA) has begun
exclusively supplying European watch and
jewellery box brand Wolf to the Australian
market.
Wolf, which was founded by silversmith
Philip Wolf in Germany in 1834 before
expanding into Sweden and the UK, is
known for its high-quality handmade
jewellery cases, travel accessories, patented
automatic watch winders, and safes.
A statement from Duraflex said, “The Wolf
mark has been a symbol of decades of
innovation and the pursuit of the perfect
Australian Jewellers Supplies
takes over Peekays Findings
Following more than 45 years as a
family-owned business, Peekays Findings
– Australia’s leading supplier of quality
gold and silver findings, settings, and
clasps – has been taken over by Australian
Jewellers Supplies (AJS).
Peekays was founded by Paul Kornmehl in
1973 and his daughters, Anita and Yvonne,
took over the business in the 1990s.
Jim Kornmehl, managing director Peekays
Findings, said, “With Anita Kornmehl
passing some five years ago, the family
recently decided that the business needs
to be taken forward by the industry leader,
Australian Jewellers Supplies.”
He described AJS as “the perfect choice”
as they are also a family-owned business,
with more than 50 years in the industry.
“With nationally located branches, highly
experienced staff and a wonderful online
platform, AJS will certainly take Peekays
to the next level,” Kornmehl added.
Selwyn Brandt, director AJS, said, “Peekays
design. Every day, in beautiful Wolf cases
around the world, centuries-old treasures
live side-by-side with exquisite new designs.
“The five-generation family owned brand
understands that extraordinary objects are
representations of extraordinary moments
in life.”
Phil Edwards, managing director DGA, said,
“The addition of Wolf to the DGA portfolio
complements our existing stable of brands
perfectly. Wolf is a truly unique brand with
an unrivalled product offering that’s a
necessity for our market. We’re delighted
to be the exclusive agent and look forward
to growing this luxury brand locally.”
In addition to the watch winders – which
are compatible with both vintage and new
timepieces – DGA will also supply luxury
watch boxes and jewellery cases, as well as
smartwatch storage trays with integrated
charging.
DGA also distributes Swiss watch brands
Baume & Mercier, Luminox and Mondaine,
and jewellery brands Ania Haie, Thomas
Sabo and Bronzallure, among others.
has been one of AJS’ key suppliers for
many years, and we have always enjoyed
a wonderful working relationship.
“[The take over] was first discussed a few
years ago and since then it has evolved
organically to where it was a natural
decision for both parties.
“We plan to continue the amazing legacy
that Peekays has created over the last
40-plus years as the premier supplier of
quality jewellery findings in Australia.”
Brandt added, “As we are also a longstanding,
family-owned and operated
business, we put the highest value in our
customers and will continue to offer them
a personalised high level of service.”
Kornmehl said, “We think that this
positive change will be better for Peekays’
customers, and they will also be happy to
hear that current employee Raymond Tran
will continue to take their orders and that
Peekays’ phone, email and website will
still operate as it does now.”
26 | October 2020

News
Lovisa profits fall
more than 47 per cent
Second Hong Kong fair
moves online for 2020
Fashion jewellery chain Lovisa has
released its full-year financial results,
revealing net profits slumped 47.8 per cent
over FY19-20 to $19.3 million, largely as a
result of COVID-19 disruption.
Supply chain problems, including freight
bottlenecks and warehouse closures in
China, as well as slower economic activity
and temporary store closures due to
lockdowns, combined to reduce total sales
by 32.2 per cent during the six months to
30 June 2020.
Despite the trading disruptions, revenue
remained relatively stable for the year,
declining 3.2 percent to $242.2 million.
As a result of lockdown closures, Lovisa’s
e-commerce sales increased by 311 per
cent for the financial year.
Shane Fallscheer, managing director
Lovisa, said, “We are pleased with what
our team has been able to achieve through
the disruptions to our business over the
past six months, and whilst it has had a
temporary impact to sales and profitability
we remain confident in our growth
objectives and have been able to maintain
the balance sheet strength required to
deliver on them. This leaves us very well
placed for the future.”
The company incurred costs related to its
continued international expansion, adding
45 stores to its network – 66 new locations
offset by 21 permanent closures, including
two in Australia – bringing its total,
including 41 franchised stores, to 435.
Notably, Lovisa management took the
decision to permanently close all nine of its
Spanish stores “due to poor support from
landlords through the lockdown period”,
incurring an impairment charge of €2.1
million ($3.4 million).
The company has appointed a “senior
leasing executive based in the Northern
Hemisphere” to oversee future
international store openings.
Over the course of the year, Lovisa pursued
its most aggressive expansion strategy in
the US market, opening 29 new stores for
a total of 48. The country is now Lovisa’s
third-largest market after Australia (152
stores) and South Africa (62 stores),
overtaking the UK (42 stores).
It also opened 13 stores in France, bringing
its total from eight to 21.
Jewellery & Gem World Hong Kong – formerly the September
Hong Kong Jewellery & Gem Fair – will be run as a digital
event this year, before returning to a physical format in 2021.
Organiser Informa Markets has announced that the
Jewellery & Gem World Hong Kong (JGW) – previously
known as the September Hong Kong Jewellery & Gem
Fair – will be conducted as an online event, Jewellery
& Gem Digital World.
The fair had been postponed to 9–13 November from
its original September dates due to the COVID-19
pandemic. However, with an “uncertain” outlook,
the organiser has now cancelled the physical event
in favour of the digital format, scheduled for 27–29
October.
The news follows the cancellation of the Hong
Kong Watch & Clock Fair – organised by the Hong
Kong Trade Development Council (HKTDC) – whose
exhibitors will instead be included in the HKTDC
Autumn Sourcing Week Online from 16–27 November.
Informa Markets described Jewellery & Gem Digital
World as a “virtual show experience that seamlessly
integrates digital product meetings with a rich
programme of industry forums, discussions and
practical gemmology workshops”.
It will also include “custom digital catalogues,
assortment management solutions and personalised
showroom technology” for exhibitors.
David Bondi, senior vice-president Informa Markets
Asia, said, “We know how important our Jewellery
& Gem fairs are as powerful platforms where our
community can come together, create strong business
relationships and discover leads to drive up sales.”
A series of webinars focused on the Asian jewellery
industry will be held in the lead up to the event, while
the winners of the JNA Awards will be announced in
a virtual presentation on 27 October, the first day of
Jewellery & Gem Digital World.
The next Jewellery & Gem World Hong Kong trade
fair will take place in September 2021, with Bondi
revealing that it will take a “hybrid” structure that
combines physical shows with digital features.
PETTE COLLECTION
Set with Argyle pink diamonds
SAMS GROUP
AUSTRALIA
E pink@samsgroup.com.au
W samsgroup.com.au
P 02 9290 2199

Diamond organisation launches new
campaign with James Bond actress
Ana de Armas is the celebrity face of the Natural Diamond Council’s latest
campaign, ‘For moments like no other’.
DURAFLEX
Proudly distributed by
New range
now available
The Natural Diamond Council (NDC)
– previously known as the Diamond
Producers Association – has launched
a new advertising campaign ‘For
moments like no other’ with actress
Ana de Armas, who will star in the
upcoming James Bond film No Time
To Die.
The campaign, which will appear
in the US, UK, Chinese and Indian
markets, comprises a 30-second
advertisement, a variety of shorter
videos, a print media campaign, and
digital advertising.
It is designed to present diamonds as
“not solely the purview of romantic
interests or formal occasions”.
In a statement, the NDC explained,
“[The campaign] was developed to
celebrate the myriad connections with
which natural diamonds are worn or
exchanged, and to bring awareness to
the Natural Diamond Council’s ‘Only
Natural Diamonds’ online platform.”
Kristina Buckley Kayel, managing
director – North America, NDC, said,
“Ana is a true talent… This campaign
redefines traditional diamond
moments, celebrating a variety of
personal connections with these
natural stones.
“It’s a more contemporary approach
to the diamond dream, for meaningful
moments big or small.”
The campaign was filmed in Portugal
in July, and features de Armas in a
variety of settings with friends, family,
and a partner while wearing diamond
jewellery from brands including Anita
Ko, De Beers, Delfina Delettrez,
Jade Trau, Lorraine Schwartz and
Melissa Kaye.
“This campaign redefines
traditional diamond moments,
celebrating a variety of personal
connections with these natural
stones. It’s a more contemporary
approach.”
KRISTINA BUCKLEY KAYEL
Natural Diamond Council
Of the campaign, de Armas said,
“This has been a very difficult year for
so many people, and, in considering
this, I was inspired by the idea of a
diamond representing connection,
or reconnection in 2020’s case, with
our loved ones.
“For moments big and small,
ceremonial to intimate, grand to
spontaneous. There’s beauty and
power but also a sense of familiarity
and ease with natural diamonds.”
The clip debuted during the digital
broadcast of the Emmy Awards on 20
September before being distributed
through TV streaming services; print
advertising will centre on high-profile
consumer publications Vanity Fair
and US Vogue as well as a number of
fashion-focused online platforms.
02 9417 0177 | www.dgau.com.au

News
Rio Tinto executives resign following
destruction of Indigenous site
Mining conglomerate Rio Tinto has
confirmed CEO Jean-Sebastien Jacques
and two other senior executives will leave
the company, with significant implications
for its Australian projects.
The resignations came in the wake of
the company’s internal review into the
destruction of the Juukan Gorge caves,
located in the Pilbara region and described
as having “the highest archaeological
significance in Australia”.
The caves were destroyed by Rio Tinto in
a controlled blast on 24 May 2020 in order
to expand an iron ore mine, against the
wishes of traditional owners, the Puutu
Kunti Kurrama and Pinikura people (PKKP).
Following pressure from Rio Tinto
shareholders – including AustralianSuper
and the Future Fund, Australia’s $166
billion sovereign wealth fund – the company
announced that Jacques will step down as
CEO on 31 March 2021 or when a suitable
successor is found.
Notably, Jacques has been a vocal advocate
for Rio Tinto’s diamond division, which is
facing numerous challenges in the nearterm,
including the closure of the Argyle Mine
at the end of 2020 and ongoing legal disputes
with both its Canadian mining partners.
Expressing his desire to expand the diamond
division in 2017, Jacques said, “On average,
from the time you think there is a good
property to the time you get to diamonds
it’s 30 years, so the exploration people have
been under pressure for a long time. It’s an
exploration game for us.”
Arnaud Soirat is currently chief executive
of Rio Tinto copper and diamonds.
Rio Tinto has also pledged to review its
Land Use Agreements, which could impact
its closure plan for the Argyle Mine; like
the Juukan Gorge, Argyle is located in
Western Australia.
At the time of publication, Rio Tinto was yet
to submit its closure plan to regulators.
Following
pressure from
Rio Tinto
shareholders
the company
announced
that Jean-
Sebastien
Jacques
will step down
as CEO
New international representatives for colour
diamond organisation
in strategic locations around the world to
promote the desire, the beauty and passion
that natural colour diamonds create.
“Our philosophy, transparency, education
and collaborations with our sister trade
groups, labs, and the media gives us the
ability and strength to provide the service
and the right knowledge and information
about natural colour diamonds.”
The Natural
Color Diamond
Association
is proud to
announce that
we are building
a ‘United
Nations’ of
ambassadors
The US-based Natural Color Diamond
Association (NCDIA) is expanding its
international presence, announcing the
appointment of four new ‘ambassadors’
based in different countries.
The ambassadors will assist the NCDIA in
achieving its mission to promote natural
fancy colour diamonds and educate the
broader jewellery industry and consumers
about their unique traits and appeal.
Alan Bronstein, president NCDIA, said, “In
our effort to show a vision of leadership for
the future of the most extraordinary natural
gemstones, the Natural Color Diamond
Association is proud to announce that we are
building a ‘United Nations’ of ambassadors
The new ambassadors are:
Hong Kong and Asia: Ephraim Zion –
trained diamond cutter, founder of highend
jewellery manufacturer Dehres, and
a former governor of the Gemological
Institute of America (GIA)
Singapore: John Glajz – founder of jewellery
brand Glajz, Argyle Partner, and former
managing director Mondial Jewelers
Switzerland: Matthew Aldridge – director
of diamond and colour gemstone trading
business Gemcut and Argyle Partner
Italy: Marco Pocaterra – director of diamond
cutting and polishing business Diamwill and
CEO diamond trading business Diamond
Love Bond.
ALAN BRONSTEIN
Natural Color
Diamond
Association

News
2020 Argyle Tender Diamonds revealed
ahead of mine closure
CONTINUED FROM PAGE 23
“We, like many others, carry a sentimental
value with Rio Tinto’s Argyle Mine and the rare
stones.” He added, “We are extremely excited
about 2020’s Tender and the unique collection,
Petite Suites.
“They always amaze us with marvellous
stones, especially the ‘hero’ stones. It is very
rare to find Argyle Pinks in such sizes, and
they each have a unique attribute to them,
especially the Argyle Eternity.”
Award-winning jeweller John Calleija, whose
namesake brand has boutiques in Sydney, the
Gold Coast, and London, said, “The closure
of the mine is incredibly significant for the
industry and it’s also quite poignant for me
personally as Argyle pink diamonds have been
my passion for more than 30 years.
He added, “This year’s Tender really has some
extraordinary diamonds. Just look at the
magnificent Argyle Eternity, and you’ll know
that you really will have to wait an eternity for
another gem to rival this beauty.
“Having three spectacular blue ‘hero’
diamonds really showcases these precious
gems. Blue diamonds are often forgotten
when their pink and red sisters take centre
stage, but they absolutely deserve their place
in history!”
Michael Neuman, director Mondial Pink
Diamond Atelier in Sydney, said he was
most excited by the selection of violet-blue
diamonds in the Tender.
“The Argyle blues are unique in the world.
All other blues are coloured by the element
boron, whereas the unique, hydrogen-rich
chemical composition of Argyle blues is what
leads to the occasional ‘violetish blue’ or
‘blue-violet’ diamonds which are so sought
after by diamond connoisseurs and collectors
the world over,” Neuman explained.
“As far as we know, these are the only
diamonds which attain this rare and quite
beautiful violet hue.”
Neuman noted that a number of red diamonds
had also been included, continuing a relatively
recent trend in the Argyle Tender.
“This has been one of the main points of
difference of the past 10 years – the inclusion
of straight red diamonds, as opposed to
purplish-red, in each and every one, with
several reds in most.
“There’s probably been an average of less than
one straight red for every year of the Tender,
and more than half of them have appeared in
the last decade,” he added.
Of the Petite Suite sets, Der Bedrossian said
that in previous years, melee tenders often
took place separately in March.
However, including the most striking
smaller diamonds as sets in the main
Tender increased their appeal for jewellers,
as they could create a “special and unique
masterpiece” using all the stones from a set.
Neuman added, “They will enable jewellers
who end up purchasing them to create ‘legacy’
pieces as a testament to the range of colours
available from Argyle and for collectors to own
a ‘set’ of diamonds which had been carefully
curated over the mine’s final years.”
Indeed, Calleija told Jeweller, “My passion for
these magnificent gifts of nature will certainly
continue, as Calleija is fortunate to have one
of the world’s finest collections of Argyle pink
diamonds and their beauty will continue to
inspire me for years to come.”
Due to the COVID-19 pandemic, selected
buyers have been invited to ‘virtually preview’
the Tender stones.
Physical viewings will take place later in
the year at the Argyle Mine in the Kimberley
region, and in Perth, Singapore and Antwerp.
Bids close on 2 December 2020.
Jewellery businesses integrated into new Palloys ordering
and account management platform
CONTINUED FROM PAGE 20
There is also a new ‘Diamond Database’, which allows
jewellers to order certified or non-certified stones loose
or set in finished designs, in sizes 0.30-carat to 6-carat
and melee.
“Our jewellery division offers an end-to-end jewellery
service including design, print, mould, casting and
finishing and now we also offer diamonds online. Handmaking
jewellers can also purchase our fabricated
metals, findings and casting granules at the same time,”
Habbal said.
“This new interface took two years to
design and implement, and is intended to
make Palloys a ‘one-stop destination’ for
all jewellery needs and services.”
STEVEN KRATSAS, Palloys
“The instant quoting for CAD files, casting from their
own mould library, fabricated metals and diamonds
allows jewellers to enjoy accurate and instant quotes
they can pass onto their customers, giving the jewellers
the competitive advantage the need to secure a job by
giving the customer a quote on the spot, or eliminating
the guesswork when designing to fit within a budget.”
The platform also has an emphasis on customisation,
with jewellers able to select from more than 245,000
designs and adjust the metals, features, and stone size
according to the customer’s budget. The jeweller can
then view a 360-degree render of the design before
placing the order.
The first version of the site launched on 2 July and the
number of active accounts has since reached nearly 4,000.
Kratsas said the response had been “very positive,
with the vast majority of users speaking highly about
the website and its ability to report live prices in a few
clicks.” He added that more features are planned to be
added this year, including metal accounts and a Palloys
account status.
Pandora to close Sydney flagship store as lease
renegotiations fail
CONTINUED FROM PAGE 20
It was the second most-expensive in the Asia-
Pacific region, behind only Causeway Bay in
Hong Kong, and recorded the largest yearly
increase in rent of any location in the top 10.
However, the COVID-19 pandemic resulted in
a dramatic decrease in footfall. An analysis
by Roy Morgan and UberMedia found that the
number of mobile devices in the Sydney CBD
on Sunday 20 September was 8,842, compared
with 24,147 recorded on Sunday 5 January.
When approached for comment on the
Pandora negotiation, a spokesperson
for Scentre Group told Jeweller, “We
don’t comment on individual commercial
arrangements with our retail partners.”
The Group – which recorded a $3.6 billion loss
in the first half of the year – recently made
headlines for its rent dispute with long-term
tenant Mosaic Group, which resulted in the
temporary closure of 129 stores. The dispute
was later resolved under confidential terms.
Scentre Group collected 86 per cent of its
monthly rental billings for August, totalling
The decision
to close the
Pitt Street
Mall store
leaves
Pandora
with three
Sydney CBD
locations
$183 million. Pandora is not alone in
permanently closing stores due to failed
landlord negotiations during the COVID-19
crisis. Michael Hill International has
rationalised its store network in Australia,
while fashion jewellery chain Lovisa entirely
withdrew from the Spanish market due to
landlord intransigence.
The decision to close the Pitt Street Mall
store leaves Pandora with three Sydney CBD
locations. Two are company owned, and one
is franchised to “an owner with whom we
enjoy a great partnership,” Allen said.
30 | October 2020

S E CUR E
E A RRI NG B ACK S
P r o u dly d e sig n e d a n d
m a n u fac t u r e d in the U K
New buying group reaches another membership milestone
CONTINUED FROM PAGE 24
retailers that want to learn from each other and share with each other.
We are here for the marathon, not the sprint so we value the close
working relationships we have with all of our stores,” he explained.
IJC also recently held a two-hour Zoom session for suppliers, which
was “well received” and will be conducted regularly in the future.
“We set this buying group up with equal importance placed on our
suppliers and retailers,” said Zarb, adding, “We used this Zoom session
to present our IJC point of difference and delivered a wealth of information
on current retail trends and opportunities, as well as providing numerous
ways in which IJC can support suppliers in this changed [post-COVID]
environment.”
Ahead of the busy holiday shopping season, Zarb said IJC would
continue to offer “hands-on support and expertise” as well as an
exciting Christmas promotion.
LVMH and Tiffany & Co. deal collapses; court battle looms
S A F E
S ECU R E
NON-S LIP
H YPO-A LLERGE NIC
C OMFOR T ABLE
CONTINUED FROM PAGE 26
Tiffany is confident it has complied with all of its obligations
under the Merger Agreement and is committed to completing the
transaction on the terms agreed to last year. Tiffany expects the
same of LVMH.”
He added, “We believe that LVMH will seek to use any available
means in an attempt to avoid closing the transaction on the agreed
terms... There is no basis under French law for the Foreign Affairs
Minister to order a company to breach a valid and binding agreement,
and LVMH’s unilateral discussions with the French government
without notifying or consulting with Tiffany and its counsel were a
further breach of LVMH’s obligations under the Merger Agreement.”
“We are not aware of any other French company receiving such a request,
[therefore] it is all the more clear that LVMH has unclean hands.”
LVMH filed a countersuit in the Delaware court on 28 September. In a
statement, it asserted that the COVID-19 pandemic has had a “devastating
and lasting” impact on the jewellery company and that Tiffany & Co. failed
to include a “pandemic or epidemic carveout” clause in the original Merger
Agreement, which would have excluded the COVID-19 downturn from
being considered a Material Adverse Effect.
The filing also states: “Tiffany’s mismanagement of its business
constitutes a blatant breach of its obligation to operate in the
ordinary course,” adding that it was “burning cash”, “slashing capital
and marketing investments” and “taking on additional debt” while
improperly paying dividends to shareholders.
However, Tiffany & Co. said the claims of taking on debt were
“misleading” and that it “has never missed or reduced a dividend
payment” since 1987, including after the September 11 terrorist
attacks and during the Global Financial Crisis.
Proudly distributed by
Reports that the deal was in trouble first surfaced in early June,
when the LVMH board met in Paris to discuss its progress. However,
as recently as 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.”
The four-day trial will be presided over by Joseph Slights III, Vice-
Chancellor of the Court of Chancery of the State of Delaware.
02 9417 0177 | www.dgau.com.au

INSIDE
Now & Then
Holdsworth Bros. Jewellers
Celebrating 136 Years • MELBOURNE, VIC • A moment with Chris Holdsworth, co-director
MILESTONES
1884
Hampden William
Holdsworth opens a
jeweller and watchmaker
store at 241a Chapel
Street, Windsor
1891
George Holdsworth
joins his brother in
the business, which is
renamed Holdsworth
Bros. Jewellers
L to R: The first store, located at 241a Chapel Street, Windsor, featuring its original name H.W. Holdsworth
Watchmaker & Jeweller; inset, Hampden William Holdsworth | The ‘new’ store at 21-23 Chapel Street in 1923
Holdsworth Bros. Jewellers was
established as H.W. Holdsworth,
Jeweller & Watchmaker, on Chapel
Street in the thriving suburb of Windsor,
Melbourne, in the spring of 1884 by
Hampden William Holdsworth.
Hampden was trained as a jeweller in
Geelong, and opened his store at age 24.
His premises replaced that of a parasol
and umbrella maker.
Hampden was rewarded for his choice of
location as this is where he met and later
married a pretty local girl named Ellen.
Later, Hampden asked his older brother
George – also a jeweller – to join the
business and in 1891 they changed the
business name from H.W. Holdsworth
to Holdsworth Bros. Jewellers.
After 20 years the brothers were able
to buy corner premises at 21-23 Chapel
Street. In 1913 they built a beautiful
modern jewellery store and factory,
consisting of a two-storey shop and
dwelling on the site.
That shop is still standing, although it
is now a convenience store.
World War I and the subsequent Great
Depression were major periods of
difficulty. During World War II, the shop
was forced to close as resources were
spent on the war effort and essential
goods and services.
I clearly remember the 1990 recession,
during my father’s time with the business;
we had to sell our family home and the
wholesale side of our business was put
into voluntary administration.
We emerged on the other side with two
stores, Knox and Eastland – which are
the same two we have today – and we
repurchased the wholesale business.
Holdsworth Bros. Jewellers is one of
three original tenants at Eastland.
The curfew and lockdown of Melbourne
during COVID-19 is the first time in 75
years Holdsworth Bros. Jewellers has
been forced to close its storefront, so this
would be the greatest challenge of my
ownership of our family legacy.
Finding your way into the family jewellery
business is not very hard! I started on the
shop floor when I was 14, doing whatever
was needed.
After completing my commerce degree
I took on the bookkeeping and computer
work for the head office, then completed
the Gemmological Association of
Australia courses in Gemmology and
Diamond Technology.
Following that, I travelled the world for a
year with no intention of returning. Dad
died from cancer in 2000, leaving the
business to my mum, so my brother Tim
and I returned to help her. Within five
years she had retired, and Tim and I
were running the business ourselves.
There is an ad I like from the Prahran
Chronicle dated 19 September 1884
announcing the opening of Hampden’s store.
It reads: “Jewellery! Jewellery! H.W
Holdsworth respectfully begs to announce
that he has opened a manufacturing
establishment at the above address where
he is prepared to execute any article in the
1913
The brothers buy the
corner store, 21-23 Chapel
Street, and build a new
modern jewellery store,
factory, and dwelling
1918
Hampden’s sons Roy,
Keith and Wallace
Holdsworth take over
the business after
fighting in WWI
1965
Roy retires and his son
John Holdsworth takes
over the business
1967
John Holdsworth
opens a second store
at the new Eastland
shopping centre
1972
John opens a third
store in Frankston
1985-1989
Stores in Knox City
shopping centre,
Brighton and Highpoint
are opened
1990-1991
Australia falls into
recession; Holdsworth
Bros. Jewellers closes
four stores – including
Chapel Street
2000
John Holdsworth
passes away, leaving
the business to his
wife Anna
2006
Anna retires, with
sons Chris and Tim
Holdsworth taking
over the business
Above: The Eastland store is one of the shopping
centre’s original tenants, opening in 1967
trade that may be entrusted to him at
the lowest charges compatible with good
workmanship and guaranteed material.”
I could print this ad today, 136 years later.
We do a brilliant job of fixing, restoring
and making fine jewellery to an extremely
high standard for a fair price.
The business surviving for four
generations is, I think, a matter of
serendipity.
Holdsworths are notoriously slow
breeders, meaning there were never
more than two generations of the
right age to work together. If there
were more, I imagine that would
have created conflict!
Doing things the same is just as
important as adapting to change.
Maintaining our values and the core
aspects of what we do is part of why we
are still here. However, where we see
advantages to changing the way we do
things, we will take those on board.
Our business is traditional and looking
at photos from our stores in the ‘50s
isn’t much different from looking at
them today. Resisting the changes from
external factors that aren’t in line with
our business model is just as important
as recognising changes in the market.
Jewellery has a history spanning tens of
thousands of years – it is probably the
second-oldest profession! I don’t see
jewellery disappearing in my lifetime.
Read the full length interview
on Jewellermagazine.com
October 2020 | 33

10 Years Ago
Time Machine: October 2010
A snapshot of the industry events making headlines this time 10 years ago in Jeweller.
Historic Headlines
4 Pandora gears up to launch IPO
4 Online aid to push Swiss watches
4 Robberies take a nosedive in 2010
4 Georgini expands into bridal market
4 Life after beads for jewellers
Diamond Exchange spirals
into trouble
Prominent online jewellery retailer Diamond
Exchange has been hit by an application to wind
up the company, which resulted in the business
putting trading on hold in September while
it sought to resolve the issue. The shutdown
coincided with a series of consumer and trade
complaints made to the JAA.
Supreme Court documents state that Timothy
Stanford of Morgan Trusscolt Capital – who
is claiming an amount of $235,923.38 against
Diamond Exchange – made the application
Diamond Exchange chief financial officer Simon
Middleton told Jeweller he was hopeful the issue
would be resolved that week, without the need
for legal action. The JAA had began working with
Diamond Exchange to expedite refunds.
October 2010
ON THE COVER Protea Diamonds
Editors’ Desk
4Fight! Fight! Fight!: “This turf war
[between diamonds and charms]
reminded me of a schoolyard incident.
In one corner was the older student
– the incumbent who considered the
other to be an upstart... not worthy
of the attention they received.
In the other corner was the new kid
at school, wanting to be admired and
trying new things to become popular
and trendy.”
STILL RELEVANT 10 YEARS ON
Make Sales Sparkle at Christmas:
“Inventory control is crucial in the
lead-up to the Christmas period, when
over-and under-stocking can have dire
consequences for your annual figures.
Retailers should aim to be more flexible
with their orders over this period.”
O’Neils to pursue growth with
Sapphex acquisition
Brisbane gem wholesaler O’Neils is gearing
up for growth after buying rival Sapphex from
industry veteran Terry Coldham.
Sapphex has two offices; one that trades as
Affiliated Importers in Melbourne, and the
other in Sydney. O’Neils will expand under
the new name of O’Neils Affiliated.
Brendan McCreesh, O’Neils co-owner, said
the acquisition provided both “economies of
scale” and “gives us a whole new scope to
fully develop some of the ideas we’ve been
working on for the last few years.”
READ ALL HEADLINES IN FULL ON
JEWELLERMAGAZINE.COM
Employment rules could catch
out retail jewellers
Retailers are unclear about the distinction
between part-time and casual workers under
the new employment Acts, it emerged at a trade
fair seminar presented by EMA Consultants
principal Rod Reid.
Reid said that if casual staff come to work at the
same time every week and work a predetermined
number of hours, they could be classed as parttime
under the new rules.
He suggested jewellers could sign individual
“flexibility arrangements” with staff, or pay
employees over the Modern Award rate to offset
overtime penalties.
Soapbox
4The One and Only Brand: “A change
in consumer thinking can only be
achieved with a bit more risk-taking
on the part of the jewellery industry
to highlight that not all jewellery is
the same.
Your own brand – your store and
identity – is your personal pot of
gold. It is what will transcend trends,
fashions, and fads. As a result, it
will be most effective when it is a
genuine reflection of you.”
– Natalie Barney, director Deborah
Windfield Jewellery
iPad technology to
transform industry?
Already touted as the future of retail store
service, one jewellery photographer believes
the iPad could revolutionise how suppliers
operate too.
Conrad Vanecek of Jewels Australia, who
catalogues product for jewellery brands including
Opals Australia, Cashelle and Ikecho Pearls, said
the new techology has dispensed with the need
for a paper portfolio, calling it “a game changer”.
With the iPad, a sales rep can update their stock
styles as soon as stock becomes available.
Meanwhile, photos of jewellery appear very
crisp and attractive on the iPad screen, with its
accurate colour calibration and high resolution.
34 | October 2020

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Retail Update
A time for hard work and optimism
The Christmas shopping season is crucial for retailers, and in the lead up to this most important time,
the Australian Retailers Association (ARA) is advocating for our sector to increase government support.
When last we spoke in May I was talking
about the ARA’s Retail Recovery Protocol
– ways for storeowners to stay open amid
the COVID-19 pandemic across Australia.
But as we’ve learned from this event,
anything can happen, and predicting the
future is impossible at the best of times.
Firstly, we are encouraging members
to actively undertake the government’s
subsidised and accredited infection control
training, which the ARA provides.
We are also supporting broader measures
that will enhance safety:
Back then, no-one foresaw the events that
have since occurred in Victoria, where a
second wave of the virus prompted the
imposition of a protracted lockdown.
• The restriction of movement to one
person per household in the same way
we have for essential services
and supermarkets in recent weeks.
It’s a lockdown that is decimating not only
that state’s economy, but also having ripple
effects across the nation given Victoria’s
importance in the supply chain.
The ARA is working with members to
mitigate the impact on the retail sector
there, but unfortunately, what the state
is offering as far as a financial lifeline –
especially to small retailers – is not enough.
In fact, we are sadly anticipating a large
number of small retail operations in Victoria
will not survive, leaving thousands of
employees out of work.
And it may take as long as a decade to see
the once bustling and vibrant shopping
districts of Melbourne regain their full glory.
At the federal level, we are encouraged by
the extension of the JobKeeper program,
which has proven to be a vital tool in
supporting retail spending.
But as the economy continues to worsen,
we will see more people unemployed, and
for those on JobSeeker, we don’t believe it
is fair that their social safety-net returns to
below-poverty levels.
COVID-safe shopping
This is a critical time of the year for
retailers, particularly those in the
discretionary categories where as much as
two-thirds of their revenue is made in the
summer shopping season.
As of 1 September 2020, the ARA had
277 members from the jewellery sector,
representing 1,208 stores.
We realise how important this time of year is
particularly for jewellers. Hiring extra casual
workers and bringing in new inventory is
a difficult task when shops are closed, so
leading up to the holidays, each day counts.
The longer the wait to fully reopen, the more
difficult it will be to cash-up and fill the
coffers before the end of the year.
We believe a progressive opening up of the
retail space – in a safe manner – is the most
important first step in Victoria.
Shopping is safe – COVID-19 transmissions
within retail remain extremely low, with a
recent survey of ARA members across the
country indicating that 93.4 per cent had
no cases of COVID-19 transmission in their
stores or distribution centres.
From a practical point of view, there are
many steps retailers throughout Australia
need to take to not just create but maintain
a COVID-safe environment.
We realise how
important this
time of year is,
particularly for
jewellers. Hiring
extra casual
workers and
bringing in new
inventory is a
difficult task
when shops are
closed
• Mandatory mask wearing by both
customers and staff to help protect
and mitigate any risk of transmission.
• The introduction of COVID marshals,
consistent with the South Australian
approach, for larger retailers.
• Extra COVID-safe measures identified
by the Victorian government to avoid
strict lockdowns.
Hope springs eternal
I understand the pain many of our retailers
are feeling right now, but I also know how
resilient and innovative we are. To see so
many businesses successfully adapt from
a pre-COVID environment to a post-COVID
environment is very heartening.
The bricks-and-mortar shops that adapted
to online delivery and/or click-and-collect,
and the clothing brands that made masks
fashionable to wear, there are countless
stories about how retail businesses have
transformed since COVID.
Yet there is still much work to be done
as we embark on the rebirth of retail.
Paul Zahra is CEO of the Australian
Retailers Association. As a leading retail
expert, he has worked in the industry for
nearly 40 years, from ASX-listed companies
to small businesses. retail.org.au
The Australian Retailers Association (ARA) is the largest association representing the country’s $310 billion
retail sector, which employs more than 1.2 million people. Providing expert advice across multiple disciplines
including leasing and wage rates, the ARA’s mission is to ensure retail success by informing, protecting,
advocating, educating and saving money for members.
October 2020 | 37

Completing my Diploma in
Gemmology has benefited
me as a jeweller in more
ways than I ever expected.
I have always had an interest
in gemstones and found
the course was not only
informative and challenging
but immensely rewarding.
Studying with the GAA has also
allowed me to meet like-minded
people from many facets of the
jewellery industry and grants me access
to resources that I will continue to use
throughout my professional career.
Emma Meakes FGAA
Jeweller, John Miller Design - WA
Diploma in
Gemmology
Enrolments now open
For more information
1300 436 338
learn@gem.org.au
www.gem.org.au
Be
Brilliant
Gem-Ed Australia
ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY
Passionately educating the industry, gem enthusiasts
and consumers about gemstones

LEARN ABOUT
Gems
Jade Part I: Jadeite
L to R: Yewn High Jewellery earrings | Tiffany & Co. pendants | Wallace Chan brooch
Below: Artisan Jewelry Ring, Lydia Courteille ring
The lustrous texture and luminous colours
of polished jade have been prized for
thousands of years. Ancient cultures in
North, Central and South America, New
Zealand, Asia and Europe valued jade
for its beauty, hardness and durability;
properties that made it suitable for use
in implements, jewellery, regalia and
decorative items.
Wearers believed jade endowed them with
long life, good health and fortune, and today
jade jewellery still has strong traditional
associations in many cultures.
The name ‘jade’ is the commercial term
used for jadeite and nephrite. Despite their
similar appearance, these minerals have
distinct gemmological properties.
Both are silicates; jadeite is a sodium and
aluminium silicate, while nephrite is a
calcium and magnesium silicate.
Both are polycrystalline in structure, with
many interlocking microscopic crystals,
making them some of the toughest
materials in the gem world.
So, what is the difference between the two?
This month, we focus on jadeite.
Typically, the name jadeite is associated
with a rich deep green colour, but the gem
is found in many hues – pale green, deep
green to black, shades of mauve and blue,
as well as white, red, brown and yellow –
and is often mottled. The richer and more
even the colour, the higher the value.
In China, jadeite of fine green colour
and translucency was once reserved
for the Emperor’s court and is known
as ‘imperial jade’.
‘Tomb jade’ is the name used for reddish
brown jade, while ‘icy jade’ or ‘water jade’
denotes the colourless, almost transparent
form of the gem.
Jadeite has a hardness of 6.5-7 on Mohs’
scale, making it suitable for use in a range
of jewellery. However, it is the gem’s tenacity
and capacity to be carved and fashioned,
along with its vitreous lustre, that makes it
attractive to jewellers and gem carvers.
As with many other gemstones, jadeite is
treated to improve colour and lessen the
appearance of blemishes.
A classification system based on the type
of treatment applied to the gem is used
to describe the quality (and hence value)
of jadeite.
The system uses the letters A, B and C, and
was developed by traders in Hong Kong
where much of the world’s jadeite is traded.
‘A’ refers to untreated jadeite; however, it
may be waxed and as this is a removable
treatment that affects only the surface of
the gem, it does not have to be disclosed.
Jadeite
From the French
translation of the
Spanish phrase piedra
de ijada, meaning
‘stone of the side’
Colour: Many, from
pale and deep green
to pink, lavender,
and black
Found in: Myanmar
(Burma), Guatemala,
and Russia
Mohs Hardness: 6.5–7
Class: Pyroxene
Lustre: Subvitreous
Formula: NaAlSi 2
O 6
‘B’ jadeite has been treated with acid to
remove stains and noticeable inclusions.
This treatment can damage the gem’s
surface, making it fragile. Consequently, a
further treatment using resin to impregnate
the gem is used to enhance its durability.
The classification ‘C’ refers to ‘B’ jadeite
that has been also been dyed to improve
the gem’s colour.
Both ‘B’ and ‘C’ jadeite must be disclosed
as treated gems.
Given that the prices of ‘A’ jadeite can be
in the millions of dollars whilst ‘C’ jadeite
can be a few dollars for the same sized
piece, it is helpful to be able to distinguish
between them!
There are many simulants sold as jadeite.
Some gems that can look similar and are
sold to confuse the buyer include bowenite,
aventurine, prehnite, chrysoprase and
chalcedony. Standard gem testing will
identify simulants quite easily.
Key sources today of quality jadeite are
Myanmar (Burma), Guatemala and Russia.
Susan Hartwig FGAA combines her love
for writing with a passion for gems and
jewellery through her gemmology blog,
ellysiagems.com. For more information
on gemmology courses and gemstones,
visit gem.org.au
October 2020 | 39

STRATEGY FEATURE
Retail Rent Review
SEEING
EYE to EYE
RETAIL RENT REVIEW
The COVID-19 pandemic has caused the bubbling tension between
retailers and landlords to boil over – but the crisis has cleared the way
for a new paradigm, writes ARABELLA RODEN.

BY THE NUMBERS
Retail Reality
Leasing premises is one of the highest
fixed costs associated with traditional
retail, alongside staff. Yet unlike staff
contracts, lease agreements are largely inflexible
– often with fixed minimum terms of five years
– and can increase beyond inflation for years
at a time regardless of trading conditions,
demanding tenants sacrifice margin or
constantly increase sales.
During good economic times, these fixed terms were
somewhat tolerable for businesses. However, the retail
environment has become increasingly challenging in
recent years; changing consumer habits, shrinking
margins, and increased competition have all served to
erode profitability.
Simon Fonteyn, managing director of retail leasing data
firm LeaseInfo Group, says, “Over the past five years, there
has been an increasing amount of capital required for
retailers to do business. In terms of leasing structures,
rents have generally been outstripping sales. Typically,
rents have escalated between 4–5 per cent per annum,
whereas retail sales have increased by, on average, 2 per
cent per year.”
Fonteyn says there was already a “shake-out” occurring
in the sector prior to the COVID-19 pandemic, pointing to
the high-profile collapse of several fashion and footwear
retailers – such as Bardot, Ed Harry, and Ziera – in 2019.
The arrival of the virus in January 2020 “accelerated
and amplified cracks that were already visible” in the
retail sector, according to the KPMG white paper Beyond
COVID-19: The Shifting Foundations in Retail Property,
which was published in June 2020.
“Retail precinct footfall had been in decline for years as
e-commerce penetration grew – recording 8.1 percent in
cumulative footfall losses over the three years to 2020.
Retailer profit margins and retail landlord yields were
being squeezed since 2017 and consumer confidence had
been in decline for most of 2019,” the paper’s authors note.
By mid-year, the Australian economy was in recession for
the first time in nearly three decades, and the effective
unemployment rate had reached 13 per cent, according
to Federal Treasurer Josh Frydenberg.
Consumer spending see-sawed, with the Australian
-8.1%
retail precinct
footfall decline,
2017–2019
KPMG, Beyond COVID-19:
The Shifting Foundations of
Retail Property
4–5%
average yearly
increase in retail
rental cost
Simon Fonteyn
analysis
1,338
shopping centres
in Australia
The Retail
Doctor Group
5.1%
vacancy rate in
shopping centres,
June 2020 – a
20-year peak
JLL Australia
12%
proportion of
Australian retail
sales that took
place online in
March 2020
Australia Post, 2020
eCommerce Industry Report
Bureau of Statistics (ABS) recording the most precipitous
fall and meteoric rise in retail trade figures consecutively
in April and May. At the same time, foot traffic at shopping
centres and retail precincts collapsed by up to 80 per cent,
leaving businesses out in the cold.
In the midst of the unforeseen and turbulent conditions
precipitated by the virus, Paul Zahra, CEO of the Australian
Retailers Association, notes that some landlords have
been unwilling to accept this new reality.
“The challenges endured by retailers over the course of
the pandemic have put a spotlight on the high cost of
rents,” he explains.
“Unsustainable annual increases to rent have been
a persistent problem for some time now, with rents
far outpacing revenue growth amid a changing retail
environment. We expect many stores will require ongoing
rent relief to help them recover – and when retailers win,
landlords win.
“Unsustainable annual increases to rent have
been a persistent problem for some time now,
with rents far outpacing revenue growth amid
a changing retail environment.”
PAUL ZAHRA, Australian Retailers Association
“Landlords need to remember that we are in a recession.
It’s a false economy for landlords to try to extract rent from
retailers that need cash reserves to survive,” he adds.
Indeed, Scentre Group, Australia’s largest shopping centre
landlord, recorded a $3.6 billion loss in the first half of
the year, including a $4 billion reduction in the value of its
property portfolio.
Negotiations with long-term tenant Mosaic Group – which
owns Rivers, Katies, and Noni B – collapsed in August,
resulting in the temporary closure of 129 stores by Scentre
Group. The dispute was resolved under confidential terms.
In September, Scentre Group’s negotiations with Pandora
Jewelry over its Pitt Street Mall flagship store also
collapsed. Pandora opted not to renew the lease and close
the store, which had been operating at the Sydney CBD
site for 10 years.
Peter Ryan, director of retail strategy firm Red
October 2020 | 41

REAL ESTATE GIANTS
Australia’s
Largest
Retail Property
Groups by Gross
Lettable Area
Communication, predicts that retailers will be in ‘survival
mode’ for at least the next two years as a result of the
pandemic. “Foot traffic is down, there has been a ‘forced’
shift to online retail, and sales and margin are under
enormous pressure,” he says.
“As household disposable incomes succumb to economic
pressure, stores will be subjected to intense pressure –
some of it appropriate, a lot of it unwarranted. Lease costs
and inclusions must be reduced or they run the risk of
becoming uneconomic.
“No retailer will be able to support high rents any longer
and therefore renegotiating terms is a critical success
factor both in terms of survival and growth,” Ryan says.
It’s a conclusion supported by the KPMG paper, which
notes, “Even if COVID-19 is quickly resolved, retailers
and landlords will need to ‘lean in’ to create a new and
more sustainable retail business model, which in turn
will require adaptations to the property model.”
Given the impact of the pandemic, two questions remain:
what will the retailer-landlord relationship look like, post-
COVID, and how can retailers shift the balance toward
more favourable terms?
Examining the retail landscape
According to analysis by the Retail Doctor Group’s Brian
Walker, Australia has 1,338 shopping centres, which
comprise 85 per cent of stores and attract 85 per cent
of overall shopping visitation.
These shopping centres are, in the main, owned and
operated by real estate companies including Scentre
Group, Vicinity Centres, and Stockland, many of which
are publicly traded.
85%
OF RETAIL VISITATION TAKES
PLACE IN SHOPPING CENTRES
Ideally, the relationship between retailer and landlord
is one of mutual benefit; while the latter collects rental
income, the former is meant to enjoy increased and highquality
footfall as well as reduced occupancy cost.
ASX: SCG
37 shopping centres in
Australia and 5 in NZ
Approximately
3.8 million sqm
lettable retail space
ASX: VCX
64 shopping centres
Approximately
2.5 million sqm
lettable retail space
ASX: SGP
35 shopping centres
Approximately
1.02 million sqm
lettable retail space
QIC Global Real Estate
Government-owned
26 shopping centres and
retail precincts
Approximately 1.42 million
sqm lettable retail space
ASX: GPT
12 shopping centres
Approximately
960,800 sqm
lettable retail space
Yet it is not always so.
Frank Salera, director Salera’s – a jewellery chain which
has been dealing with landlords since 1953 and operates
20 stores across Victoria and Queensland – observes,
“The key challenge is that landlords seek to maximise
the returns to their shareholders, who expect year-uponyear
increases – and this objective is irrespective of the
challenges of increasing retail performance, which is
often declining.
“This results in a situation where now, more than ever,
retailers are required to ‘throw the keys on the table’ [threaten
to vacate] before the landlords will consider a rent that affords
the retailer a minimum return on investment.”
“The key challenge is that landlords seek to
maximise the returns to their shareholders,
who expect year-upon-year increases –
and this objective is irrespective of the
challenges of increasing retail performance,
which is often declining.”
FRANK SALERA, Salera’s
It’s a perspective shared by Balaji Sambasivam, chief financial
officer of large chain The Jewellery Group (TJG), which
operates 67 stores under the Mazzuchelli’s and Zamels
brands. Notably, TJG’s store count has decreased dramatically
since 2010, when it operated more than 120 stores.
When asked about the challenges of negotiating leasing
agreements, he said, “Landlords were unilaterally
considering only their property valuation and returns, with
less scope to look at the retailer’s commercial viability of
operating the store.”
He added, “There was lots of pushback in negotiating the
multiple stores as one portfolio, as they were stating that
each store has different cost dynamics and the owners’
expectations were different.”
When negotiating the terms of a lease, retailers have
historically been at a disadvantage, with Ryan noting
that they must often supply trading information to
landlords “only for them to turn around and use that
information to negotiate onerous terms based on a
percent-of-sales formula”.
42 | October 2020

Retail Rent Review | STRATEGY FEATURE
NO RESOLUTION OUTCOME
ALTERNATIVE FUTURE: THE RETAIL LANDSCAPE
If current trends continue unabated, without
a flexible and reasonable response from
landlords, the retail landscape in Australia
could look dramatically different in the
coming years.
Overall, retail footfall has been in decline
since at least 2017 and at an accelerating
rate – which will likely continue as
e-commerce penetration increases.
Yet over the same period, rents have
increased, on average, by 4–5 per cent
per year, according to LeaseInfo Group
managing director Simon Fonteyn.
Tellingly, the vacancy rate across Australian
shopping centres reached its highest rate in
more than 20 years – 5.1 per cent – in June
2020, according to data from commercial
real estate firm JLL Australia.
For CBD-based shopping centres, the
vacancy rate is at more than 10 per cent.
Shopping precincts and strips have fared
even worse; an analysis by real estate
advisory firm Plan1 Project Management
found that Melbourne’s Chapel Street had
a vacancy rate exceeding 20 per cent
in June 2020.
Across the city’s 11 major retail strips, the
vacancy rate was 12.3 per cent, an increase
of more than 4 per cent when compared
with 2018.
Speaking at the Australian Financial
Review’s Virtual Retail Summit earlier this
year, Julia Forrest, a portfolio manager at
investment firm Pendal Group, speculated
that vacancy rates would likely increase
further, and that more retailers would opt
for holdovers – month-to-month contracts –
rather than long-term leases.
Peter Ryan, director of retail consultancy
RED Communication, says “The economic
reality is that we face an extended period
of poor market conditions with some
economists suggesting the impacts could
last a decade or more and that we have not
seen the worst of it yet.”
“The economic reality is that
we face an extended period of
poor market conditions with some
economists suggesting the impacts
could last a decade or more
and that we have not seen
the worst of it yet.”
PETER RYAN, RED Communication
However, Ryan believes “online is only part
of the solution” and that stores will “regain
their position as the centre of the customer
relationship – [but] when that happens
though is the critical question.”
Without a sustainable reduction in rent,
Ryan says retailers will face increasing
pressure to exit tenancies.
Meanwhile, Fonteyn argues that shopping
centres will not disappear from the
Australian landscape – but that they will be
“forced to change”: “Their model is getting
shoppers in, getting them to spend, and
getting them to stay as long as possible.
“After
COVID-19,
that has to be readjusted.
There will
be another iteration of
different types of use within
shopping centres.”
He adds that shopping centre
owners are constrained by strict
planning laws. “It’s not that easy to
introduce new shopping centres.
“There have been a couple of new centres
built [in the past 10 years], but the majority
have been there for decades and have
simply expanded their trading area.”
However, the shift toward mixed-use,
including residential, offices, services, and
lifestyle, may be hampered as consumers
increasingly opt to avoid crowded spaces
due to safety concerns.
Additionally, the KPMG white paper Beyond
COVID-19: The Shifting Foundation of Retail
Property notes that ‘destination shopping’
at large-scale centres is in decline, with
consumers increasingly preferring to
spend locally in what is referred to as
‘village shopping’.
At the same time, replacing tenants has
become “increasingly difficult”, with
landlords “having to work much harder to
attract new tenants and repurpose their
centres to make them relevant to their
communities.”
In order to justify rental costs, the report’s
authors suggest that landlords provide
“supporting infrastructure” for retailers
who are moving toward omni-channel
sales, such as “kerb-side pick-up zones,
dark stores/floors, shared click and collect
counters, or parcel lockers”.
If these changes do not occur, the value
of shopping centre assets will continue to
decline – as will the Australian retail sector.
October 2020 | 43

1
0%
0% Investments by retailers and landlords in
Australian retail footfall had been in decline for years - 1%
1
before COVID-19
the shopping Investments experience Australian by retailers had been and consumer landlords in confidence
- 1% working to the reduce shopping the experience rate of footfall had been decline
12 month rolling average YoY growth rate
- 2%
Index (>100 = positive outlook)
1
STRATEGY FEATURE | Retail Rent Review
working to reduce the rate of footfall decline
Jan 2017 – Mar 2020
- 2%
Jan 2017 – Apr 2020
- 3%
1
- 3%
- 4%
150
1
0%
- 4%
Australian retail
Investments by retailers and landlords in
- 1%
- 5%
140
1
footfall had been
the shopping experience had been
- 5%
working to reduce the rate of footfall decline
in decline for years
- 6%
- 2%
- 6%
130
before COVID-19
- 7%
- 3%
- 7%
120
12 month rolling average
2017 2017 2018 2018 2019 2019 2020 2020
YoY growth rates from - 4%
110
January 2017 – March 2020
2017 2017 2018 2018 Positive 2019outlook
2020 2020
- 5%
-3.9% -3.9% -6.7% 100-6.7% -8.1% -8.1% -11.7% -11.7%
Source: KPMG report,
Negative outlook
using ShopperTrak data,
- 6%
90
Jan 2017-March 2020
. .
- 7%
80
Consumer confiden
2017 2018 2019
2020
Cumulative Cumulative % growth % in growth footfall in footfall since 2016 since 2016
70
deteriorating prior t
Zahra describes another “information imbalance”:
“Smaller retailers, in particular, don’t fully know
their rights and what they can ask for. Landlords
are in the business of collecting rent, whereas
for retailers, rent is just one of many parts of the
business they need to manage.”
Additionally, many Australian states and territories
have required a minimum five-year term for
commercial leases. While providing stability for
retailers and security for landlords, these terms
have made it more challenging for retailers to
respond to downturns.
As a result, several states have taken steps to
amend the legislation governing commercial
leases.
“In NSW, which accounts for about a third of all
Australian retail, there used to be a requirement
of minimum five-year terms, but that has now
changed [with legislation passed in 2017],”
Fonteyn explains.
In South Australia, amendments to the Retail
And Commercial Leases Act came into force
in June and have streamlined the process for
acquiring a certified exclusionary clause to
shorten a lease term.
The changes also provide added protection and
reduce confusion for small and medium retail
tenants. John Chapman, South Australian Small
Business Commissioner, explains that the
amendments resulted from a lengthy period of
consultation and an independent judicial review.
“Some of the changes that have flowed through
2017 2018 2019 2020
Notes: (1) Based on ShopperTrak 60 data, ShopperTrak uses in-store foot traffic counters to collate foot traffic data;
-3.9% -6.7% -8.1% -11.7%
Notes: (1) Based on ShopperTrak data, ShopperTrak uses in-store foot traffic counters to collate foot traffic data; (2) G
Sources: Livewire Markets, Chart of the day: foot traffic for Australian retailers; AFR, Weak retail spending an un
Sources: Livewire Markets, Chart of the day: foot traffic for Australian retailers; AFR, Weak retail spending an uninten
include that landlords will be required
2019; ANZ - Roy Morgan Australian consumer confidence; KPMG analysis (2020)
2019; to provide ANZ - Roy Morgan in Australian penalties consumer for parties confidence; “not KPMG providing analysis (2020) the right
10
prospective tenants with a disclosure statement information or doing the right thing, or seeking
.
and a draft lease as soon as negotiations
information they are not required to,” according to
commence,” Cumulative % growth Chapman in footfall says. since 2016
Chapman. These 2017 penalties had not been 2018 updated 2019
since 1995.
“What that is aiming to do is make sure people
have as much information up front so they can
Notes: (1) Based on ShopperTrak data, ShopperTrak uses in-store foot traffic counters to collate foot traffic data; (2) Growth rate from previous to current year’s 12-month average (e.g. Jul 16
Sources: Livewire Markets, go Chart away of the and day: think foot traffic about for Australian it early. retailers; That provides AFR, Weak retail spending an unintended consequence of the banking royal commission; Savills Research Qua
2019; ANZ - Roy Morgan Australian consumer confidence; KPMG analysis (2020)
transparency around the stages of negotiation.”
“Shopping centres have tried, generally,
to change the mix to ‘experiential’
retailing – lifestyle precincts, casual
dining precincts, gyms – and away from
more traditional retail... Unfortunately
that has backfired during COVID-19
because experiential retail has been
hardest hit.”
SIMON FONTEYN, LeaseInfo Group
Additionally, the South Australian Small Business
Commission has produced a Retail Commercial
Leasing Guide, which is now required to be
provided to prospective tenants.
“This document is very much aimed at helping
tenants understand their obligations and what
a lease may contain, with frequently-askedquestions
and indeed tips on what to look out for,”
Chapman says.
Other changes include a “significant increase”
In the past five years, Fonteyn notes that shopping
centre landlords have also made significant
efforts to improve footfall, namely by shifting the
retail mix toward services and lifestyle.
“Shopping centres have tried, generally, to
change the mix to ‘experiential’ retailing – lifestyle
precincts, casual dining precincts, gyms – and
away from more traditional retail like apparel
and footwear.
“Unfortunately that has backfired during
COVID-19 because experiential retail has been
hardest hit,” he explains.
“Centres have also become more ‘all hours’ –
opening early and closing late – and they appeal
to different types of shoppers throughout the day.”
It’s a trend Salera has also observed: “With or
without COVID, the centres have spent the last
few years in considering how to maintain centres
as a hub of consumer activity.
“In the past, specialty retailers and department
stores formed the basis of attracting shoppers to
centres, which then created a demand for food
and lifestyle – such as cinemas.
“The apparent trend is that now landlord owners
are focusing on food and lifestyle as the primary
attraction for consumers, who will then frequent
the specialty stores.”
7.5%
AUSTRALIAN
UNEMPLOYMENT
RATE, JUL ‘20
82.5%
INCREASE IN
E-COMMERCE
SALES FOR ALL
RETAILERS, APR ‘20
80%
DECLINE IN
SHOPPING CENTRE
FOOTFALL, Q1 2020
44 | October 2020

Retail Rent Review | STRATEGY FEATURE
As Fonteyn notes, the viability of the lifestyledriven
strategy has been significantly hampered
by COVID-19, at least in the short-term.
Whether footfall will recover to previous levels
remains to be seen, given that COVID-19 has also
accelerated another major retail trend of the past
five years: e-commerce.
Facing the headwinds
COVID-19 dealt a devastating blow to the
Australian economy, plunging it into recession
and increasing the official unemployment rate to
7.5 per cent, its highest level in 22 years.
At the same time, shopping centre footfall
declined by more than 80 per cent in 2020, when
compared with 2019, during the nationwide
lockdown. It remains about 20 per cent lower
in states that have emerged from restrictions,
according to data from ShopperTrak.
The KPMG white paper notes, “The higher the
footfall, the more time consumers dwell and the
more confident consumers are in their financial
wellbeing, the more money they spend with
retailers, who can then pay rent to landlords and
make a profit.
“The COVID-19 physical distancing measures
and the resulting recession work against all
three of these value drivers – footfall, dwell times
and consumer confidence.”
For practical reasons, consumers increasingly
turned to e-commerce while under lockdown and
have adapted to its convenience.
TRENDS OVER TIME
CENTRE OF
CHANGE: RETAIL
EVOLUTION
Since 2015, several major trends have
been noted in shopping centres. These
have occurred as a result of changing
consumer behaviour as well as external
pressures on specific categories within
the retail sector.
Foot traffic has been driven by different
factors: The number of department
stores and discount department stores
in shopping centres has shrunk.
Meanwhile, supermarkets – such as
Woolworths – and lifestyle businesses,
such as gyms, as well as cinemas
have been making up some of that lost
foot traffic.
Shopping centres have become
more ‘all hours’: Early opening and
late closing has increased in order to
appeal to different types of shoppers
throughout the day.
A move toward mixed-use
development: Shopping centre
landlords have shifted their model
to include a combination of retail,
residential, and offices. In the future,
this mixed-use model could also
include hotels.
Instability in the discretionary retail
sector leading to changing tenancy
mix: Retailers, particularly in fashion
and footwear, have been vulnerable
to increased competition from large
international entrants to the market, as
well as online-only fast retailers. This
has led to a ‘shake out’ of such tenants.
The Australian Financial Review reported that in
August 2020, e-commerce sales increased 56 per
cent for omni-channel retailers when compared
with April 2019. For online-only retailers, the
figure was 109 per cent.
That shift – however temporary – away from
bricks-and-mortar shopping has placed significant
pressure on retailers and landlords alike.
Vicinity Centres – which operates 60 shopping
centres across Australia, including Melbourne’s
Chadstone and Chatswood Chase in Sydney – was
recently forced to launch a $1.4 billion capital
raising to mitigate the decline in rental income,
while its overall real estate portfolio declined in
value by $1.8 billion for the first half of the year.
While retail sales fell a record 17.7 per cent in
April due to widespread lockdowns, the figure
rebounded 16.3 per cent in May as government
stimulus flowed through to consumers and
businesses, before stabilising in June.
However, the spending was largely concentrated
in necessities such as groceries, hardware, and
homewares. Fonteyn said the jewellery category
had been “heavily impacted”, though urban areas
had again borne most of the brunt.
With bricks-and-mortar retailers across
discretionary categories in dire straits, the
necessity of rent reductions, waivers, and
deferrals became clear.
“Meeting rental obligations is a significant
concern for retailers, with many stores still
suffering diminished revenue, particularly
17.7%
FALL IN RETAIL
SALES, APR ‘20
12.3%
16.3% 2%
VACANCY RATE
INCREASE IN RETAIL
SALES, MAY ‘20
OF MAJOR
MELBOURNE
RETAIL STRIPS
AVERAGE YEARLY
INCREASE IN TOTAL
RETAIL SALES
October 2020 | 45

STRATEGY FEATURE | Retail Rent Review
INSIGHTS
The Response
to COVID-19
When it comes to
assessing the impact
of COVID-19 on
shopping centres,
Simon Fonteyn,
managing director
of retail data firm
LeaseInfo Group,
argues that the
figures paint a
nuanced picture.
“[The impact is]
location-specific,
sector-specific,
geographically
specific – and within
shopping centres,
certain categories
are doing better than
others. Generally
speaking, the
smaller shopping
centres – what we
IMPACT ON SHOPPING CENTRES
PAIN AND GAIN
% change
by precinct
format
Sm all shopping
centres
Large format
stores 2
Medium
shopping c entres
Major
retail strips
Large shopping
centres
Me lbourne
CBD
Outlet
precincts
Reference periods
A vs. BA vs. C
27/01 –1 6/03 27/01 –2 7/04
-20%
-10%
-19%
-30%
39%
-47%
14%
-32%
-39%
-45%
-59%
-66%
-87%
-87%
Impact of COVID-19 on shopping centre
footfall by type. Source: KPMG/GapMaps.
term Neighbourhood centres – have been the least impacted
because customers are tending to spend and shop locally,
particularly for groceries. The most impacted have been
CBD shopping centres, for obvious reasons: the lack of office
workers and no international tourists,” he explains.
“In between those, in general the bigger the shopping centre,
the more impact has been felt, usually because of what their
mix entails. The exception to that rule would be shopping
centres in regional areas, which have not been impacted to
the extent of metro areas.” Fonteyn’s analysis is supported by
data from KPMG and GapMaps (see chart, above).
In terms of shopping strips or precincts, Fonteyn says the data
point to even more of a “mixed bag”.
“Some have been devastated by COVID-19. As an example, I
was recently at a strip mall in northwest Sydney which used to
be very busy, and the number of vacancies astounded me. Strip
malls have been affected because a lot of the businesses that
tend to go there are SMEs [small and medium enterprises] and
they have been hit really hard.”
“There are also high vacancy rates in Oxford Street in Sydney
and Chapel Street in Melbourne – the fashion districts – and
that gives you an idea that it’s really a mosaic.”
This information should be taken into account when predicting
how centres may recover in the medium- and long-term.
Paul Zahra
Australian Retailers
Association
“Many landlords are treating
the Code’s minimum
provisions for rent relief as
their maximum requirement,
and are unwilling to offer
rent abatement higher than
50 per cent of the total rent
relief. However, it is unfair to
be entirely critical, as we’ve
also received a lot of positive
feedback.”
Peter Allen
Scentre Group & Shopping
Centre Council of Australia
“We all accept that
retail leases are legal
obligations and enshrined
in the laws of the states and
territories, yet we are also
commercial people and we
understand there needs to
be many factors taken into
consideration as we come to
an agreement.”
John Chapman
South Australian Small
Business Commissioner
“The vast majority of the
[mediations have been]
successful with the parties
in agreement. We don’t
expect a lot to go to court.
What we are finding is that
a lot of people, once we go
to the other party, come to a
resolution. They go away and
start talking again, and that’s
a great outcome.”
discretionary retailers and stores in CBD or tourist-dependent
locations,” Zahra says, adding that retailers would also incur
costs due to COVID-19 safety requirements.
On 7 April, the National Cabinet released a Commercial
Tenancy Code of Conduct to guide good-faith rent
renegotiations between retailers and landlords.
At the time, Peter Allen, CEO Scentre Group and chairman
of the Shopping Centre Council of Australia (SCCA), said,
“We all accept that retail leases are legal obligations and
enshrined in the laws of the states and territories, yet we are
also commercial people and we understand there needs to
be many factors taken into consideration as we come to an
agreement on temporary arrangements.
“Our aim is, in a proportionate and measured way, to share
the financial risk and cash flow impact during the COVID-19
[pandemic] with the interests of all our stakeholders.”
“It is in our commercial interests as well as the
broader economy that SMEs have longevity within
our centres as they provide products and services
our customers want and support local jobs.”
ANGUS NARDI, Shopping Centre Council of Australia
Between March and May, SCCA members were able
to complete more than 6,400 revised rent agreements
with small and medium-sized retailers, representing
approximately 45 per cent of those who had requested relief.
As of 14 August, the SCCA’s assistance extended to retail
tenants totalled $1.6 billion.
Angus Nardi, executive director SCCA, said, “Our industry
has provided substantial rental assistance to both SME
[small-and-medium enterprise] and non-SME retailers...
We have strived
to strike a balance between helping those who need it while
at the same time confronting our own financial pressures in
the face of ongoing disruptions to regular trading to protect
public health.”
He added that SCCA members would continue “working closely
and co-operatively” with SMEs, saying, “It is in our commerical
interests as well as the broader economy that SMEs have
longevity within our centres as they provide products and
services our customers want and support local jobs.”
46 46 | October | August 2020 2020

Retail Rent Review | STRATEGY FEATURE
Top 3 retail categories offered
rental assistance
26%
21%
14%
CAFES, FOOD CATERING & TAKEAWAY
RETAIL SERVICES (I.E HAIRDRESSERS,
KEY-CUTTING & SHOE REPAIR)
CLOTHING, FOOTWEAR &
ACCESSORIES
AT THE TABLE
Approaching
Negotiation
Meanwhile, Grant Kelley, CEO Vicinity Centres, has drawn ire
for suggesting that lease agreements could include base rent
plus a variable component based on retailers’ e-commerce
sales, justified by bricks-and-mortar stores acting as
‘showroom and fulfilment channel’.
Across the retail spectrum, the ARA’s Zahra reveals that
renegotiation results have been moderately successful:
“We have heard from retailers that the majority of landlords
are sticking strictly to the provisions specified by the National
Cabinet’s Code of Conduct, however some landlords are
extending better offers than the code requires which is
welcome feedback.
“Disappointingly, we have heard that many landlords are
doing as little as possible under the law. Many landlords
are treating the Code’s minimum provisions for rent relief
as their maximum requirement, and are unwilling to offer
rent abatement higher than 50 per cent of the total rent
relief,” he says.
“However, it is unfair to be entirely critical, as we’ve also
received a lot of positive feedback. One medium-sized
landlord wrote to all tenants to advise them of a six-month
holiday for rental payments to affected tenants.”
The most potent and visible example of the conflict between
retailers and landlords has been the public campaign of Premier
Investments, Australia’s largest retail tenant and the owner of
brands such as Peter Alexander, Just Jeans and Smiggle.
Led by chairman Solomon Lew and CEO Mark McInnes,
Premier refused to pay rent during a six-week shutdown in
the first wave of the pandemic, and has since advocated for
a percentage-of-sales-only model.
Prominent chains, such as jeweller Michael Hill and fashion
retailer City Chic, chose to rationalise their store network
and close locations due to the intransigence of landlords.
In the jewellery category, Salera said his business was offered
the opportunity to renegotiate with landlords, but the terms
were “not acceptable”.
In contrast, Sambasivam said The Jewellery Group’s
landlords were “by and large more than willing to discuss
the opportunities to defer, renegotiate or waive rent”.
On the state level, support has been extended by various
governments to assist retailers. The Victorian Government’s
lCommercial Tenancy Relief Scheme, which includes a
moratorium on evictions for SME tenants meeting certain
criteria – has been extended to 31 December 2020.
Judy O’Connell, Victorian Small Business Commissioner,
Judy O’Connell
Victorian Small Business
Commissioner
“We want to help tenants and
landlords negotiate the best
possible rental outcomes, so
they have one less thing to
worry about and can focus on
coming out of this pandemic
in good shape. We’re
confident the new reforms
to commercial tenancy laws
will give tenants and their
landlords the much-needed
support and security they
need during these incredibly
tough times.”
Jane Cohen
KPMG
“I don’t necessarily think
retailers will be able to get
more out of the landlords,
but both will be able to
create more value if they
shift to a more collaborative
approach.”
Peter Ryan
RED Communication
“The problem about
renegotiating rent is one of
fairness to both parties. A
landlord must get a return on
investment or the asset will
become starved of capital
and operational expenditure
– and that includes
promotions which attract
customers.”
RENT READY
NEGOTIATION CHECKLIST
FOR RETAILERS
Assessment
Examine your business model and decide whether it is
viable for the long-term: what is the existing occupancy
cost, and what is a sustainable rent going forward? How
expensive is the store fit-out and how long will it take to
amortise the cost?
Analyse market trends and uncertainty to determine
whether a short, flexible lease is preferable to a longer term
Analyse the performance of your store and the shopping
centre or precinct: is it in the best possible location in terms
of the centre’s retail mix, and delivery of quality foot traffic?
Would it be better suited to another area, or even moving to a
shopping strip?
Given the changes in consumer behaviour, how is the
shopping centre management planning to support retailers
and drive foot traffic over the next two to five years?
Education
Seek advice from your buying group or industry
organisation, such as the Australian Retailers Association:
inform yourself about the landlord’s obligations, what you are
entitled to as a tenant under legislation, and what you are not
required to provide – such as cash flow projections or financial
statements
Refer to the relevant retail tenancy legislation in your state
– several have been updated in recent years with increased
protections and flexibility for tenants
Check your relevant Small Business Commissioner’s
website for guidelines and frequently asked questions
regarding commercial tenancies
Negotiation
Bring an attitude of fairness and good faith to the
conversation, but recognise that the survival of your business
is paramount
Be honest with the landlord about what you can afford
The Australian Retailers Association recommends retailers
avoid signing a non-disclosure agreement, as this limits
their options for collective bargaining
If you are unable to come to an agreement, seek support
from your state or territory’s relevant Small Business
Commissioner, as many are equipped to provide mediation
services at low or no cost
August October 2020 2020 | | 47 47

STRATEGY FEATURE | Retail Rent Review
KEY
TRENDS
FOR
RETAILERS
told Jeweller, “We want to help tenants and
landlords negotiate the best possible rental
outcomes, so they have one less thing to
worry about and can focus on coming out
of this pandemic in good shape.
“We’re confident the new reforms to
commercial tenancy laws will give tenants
and their landlords the much-needed
support and security they need during
these incredibly tough times.”
By July, O’Connell’s office – the Victorian
Small Business Commission – had received
825 applications to resolve rent disputes;
of those that were finalised, 96 per cent
resulted in rent relief for the tenant.
Meanwhile, South Australian Small
Business Commissioner Chapman said,
“The vast majority of the [mediations
have been] successful with the parties in
agreement. We don’t expect a lot to go to
court. What we are finding is that a lot of
people, once we go to the other party,
come to a resolution. They go away and
start talking again, and that’s a great
outcome,” Chapman said.
He added, “There will be those periods for
businesses who were shut down and a lot
of them have already come to agreements
with their landlords.
“There will be others that haven’t. There will
be those that open up and landlords saying,
‘Well, you’re open now, I want all my rent.’
That is not realistic in some cases and there
will be a lot subject to negotiation.”
Indeed, the need for negotiation and
managed expectations – on the part of
both retailers and landlords – is critical
in the post-COVID period.
Bridging the gap
For retailers, the COVID-19 pandemic
dramatically rebalanced the value
equation with landlords, most notably by
the decrease in footfall, the increase in
e-commerce trading, and the rising
number of store vacancies.
“Since the early 2000s at least, supply has
always exceeded demand for shopping
centre space. As a result of COVID-19, with
the number of retailers that have gone out of
business, you are seeing a situation where
demand exceeds supply,” Fonteyn explains.
“Retailers can’t afford now to hold any space
that is not making money. Large groups
may have one or two stores that they are
prepared to take a loss on, but the majority
will have to be profitable or breakeven. The
pandemic has simply created a seismic shift
in supply and demand – and hence, rent.”
“There will be [consumers] who
jump straight back to the way
they were, but even if just a small
percentage move [their shopping
patterns], it makes such a difference
on these fixed-cost businesses – both
the landlords and the retailers.”
Jane Cohen, KPMG
Indeed, at the Australian Financial Review’s
Virtual Retail Summit, held on 25 June, Ian
Bailey, managing director Kmart Group,
confirmed that 10–20 year leases and
yearly increasing rents would no longer be
acceptable to large anchor retailers.
“None of us are going to be signing anything
like that in the future because what this
period of time has told us is things can
happen where sales decline completely
outside of the control of the retailer – and
rents do not,” he said.
Jane Cohen, a partner at KPMG Australia
and co-author of the white paper, observes
that consumer behaviour has been
drastically changed by the virus and those
trends are likely to continue, placing more
pressure on both landlords and retailers to
create a more sustainable framework.
“There will be people who jump straight
Higher vacancy
rates means
there is less
competition for
retail space, both
in centres and
precincts
Economic
uncertainty
creates a good
environment for
negotiating a
new, better deal
as landlords
look for repeat
income
Large shopping
centres are still
beholden to
shareholders,
putting upward
pressure
on rents
The consumer
shift to ‘village
shopping’
makes smaller
centres more
appealing for
retailers
As e-commerce
grows, shopping
centres must
adapt to offer
infrastructure
for omni-channel
retailing
back to the way they were, but even if just
a small percentage move, it makes such a
difference on these fixed-cost businesses –
both the landlords and the retailers,” she says.
It’s a conclusion supported by Fonteyn, who
says, “Post-COVID, it’s a whole new world.
People are preferring to work from home,
at least part of the time, because they don’t
have to bother with the commute and it’s
convenient for them.
”That means the consumer behaviour will
change; they might shop more locally, so
there will be less demand in the CBD.”
Salera notes, “Landlord’s expectations of
achievable rent will need to change. In the
short run, the only way that landlords will
accept the possibility that they will generate
less rent from sites is when they get an
increased level of vacancy.
“This may well escalate in the years
immediately after the end of the COVID
financial support as more businesses
are very likely to close their doors due to
unsustainable rent.”
Zahra adds, “If retailers fall over due to
rental costs, landlords may not be able to
replace them – it’s better to have a tenant
with reduced rent than an empty store. It
would make more sense to come to an
arrangement that allows that tenant to
continue to trade profitably.”
For retailers, the balance of power has
tipped slightly in their favour. In addition to
further regulatory protections and free statebased
mediation services, the Australian
Competition and Consumer Commission
(ACCC) issued a draft determination granting
new collective bargaining powers to the ARA
and its members.
“The ACCC’s draft determination will help
our members exchange information and
collectively bargain with landlords to achieve
more productive outcomes during this
uncertain time,” Zahra says.
“The provision is time-bound, and is
48 | October 2020

Retail Rent Review | STRATEGY FEATURE
scheduled to elapse on 1 September
2021, which will provide retailers with a
crucial opportunity to inform themselves
and understand what is going on in the
marketplace. This will help press the reset
button on future lease agreements.”
Meanwhile, Sambasivam predicts that “the
valuations and cost structure of operating
the stores will come to realistic levels, and
landlords’ objective at this point in time is
ensuring that more stores are open for trading.”
When it comes to the timing of a negotiation,
Fonteyn observes that landlords have been
“very accommodating” for his clients and
have presented the most favourable terms
in 10 years.
“Landlords are desperate for certainty or
repeat income, so the next year or two is a
great time to negotiate if you are due for a
lease renewal,” he says, adding the caveat
that with so much uncertainty retailers may
instead take a ‘wait-and-see’ approach.
He notes that many commercial tenants are
“on holdover” – paying rent month-by-month:
“They are dealing with all the COVID-19
legislation and paperwork, so most are not
even thinking of renewals at the moment, they
are just getting through to September.”
In the long-term, Fonteyn predicts rents will
adjust in line with the retailer’s sales:
“Retailers can’t continue to run businesses
that are not profitable. It’s going to be
much more about what’s sustainable for
“If retailers
fall over due
to rental costs,
landlords may
not be able to
replace them
– it’s better to
have a tenant
with reduced
rent than an
empty store.
It would make
more sense
to come to an
arrangement
that allows
that tenant
to continue
to trade
profitably.”
Paul Zahra,
Australian
Retailers
Association
that business – and if the business is
profitable, then the rent should align more
broadly with the average for that sort of
category,” he explains.
While jewellery stores have previously
been “in the crosshairs of shopping
centres” to pay a higher rate per square
metre for premium sites, Fonteyn advises
that jewellers will be less receptive, as the
vulnerabilities of the category have been
laid bare.
Speaking at the Virtual Retail Summit,
Julia Forrest, a portfolio manager at
investment firm Pendal Group, said,
“We’re looking at it as an opportunity for
rents to be reset to sustainable levels
and once they’re at sustainable levels it
will give us the confidence to put a high
multiple on those earnings as retailers
and sales improve.”
She rejected a Premier Investments-style
model as unacceptable to shareholders.
Salera views the future of retailer-landlord
negotiations through a pragmatic lens:
“There are certain lease parameters that
landlords have considered to be nonnegotiable,
and I doubt that we will see a
situation where small to medium retailers
will be able to vary these core terms.
“However, I believe that landlords will be
inclined to be more lenient in areas where
they have greater latitude to negotiate,
rent being one such area.”
Those sentiments were echoed by
KPMG’s Cohen, who said: “I don’t
necessarily think retailers will be able to
get more out of the landlords, but both
will be able to create more value if they
shift to a more collaborative approach.”
Sambasivam reached a similar
conclusion, saying, “I am sure the
relationship will be more amicable with
more mutual benefits, rather than it being
a ‘my way or highway’ approach.”
Meanwhile, Ryan cautions both retailers
and landlords against dismissing the
requirements of the other. “A landlord
must get a return on investment or the
asset will become starved of capital
and operational expenditure – and that
includes promotions which attract
customers. A retailer needs the lowest
rent possible to survive,” he explains.
“It is not landlords’ job to subsidise a retail
business, but lease costs should reflect
what is being delivered to the retailer.
If it is the wrong type of foot traffic or a
low level of foot traffic, then the onus
falls to the landlord to either improve the
outcome or reduce the rent.”
With realistic and flexible terms in place,
retailers can thrive in the new trading
environment – and landlords can expect
stable profits over the long-term. The
result is mutually assured success,
rather than destruction.
USEFUL REFERENCES
Victorian Small Business Commission
13 87 22
NSW Small Business Commissioner
South Australian Small Business
Commissioner
Small Business Development Corp. (WA)
13 31 40
Queensland Small Business
Commissioner
1300 312 344
Business Tasmania
1800 440 026
Tenancy Unit, Consumer Affairs (NT)
1800 019 319
ADDITIONAL RESOURCES
Australian Retailers Association (ARA)
1300 368 041
National Cabinet Mandatory Code of Conduct
Australian Treasury
KPMG Beyond COVID-19: The Shifting
Foundations in Retail Property
October 2020 | 49

PROTECT YOUR LEGACY
WATCH WINDERS | WATCH BOXES | SAFES
JEWELLERY BOXES | TRAVEL BOXES
Proudly distributed by
02 9417 0177 | www.dgau.com.au

2020
Holiday Stock Special
Christmas
Showtime
Ahead of the all-important
Christmas shopping period,
Jeweller has compiled a selection
of jewellery and watches ready
to stock that will inspire and
delight your customers.
October 2020 | 51

Holiday Stock Special
JEWELLERY
Ania Haie
Duraflex Group Australia
302 Fine Jewellery
Stuller
Balancing a centrepiece
of natural labradorite
with a scattering of
sparkling cubic zirconia,
the unmistakably chic
Midnight Star pendant is
the perfect addition to a
day or evening ensemble.
This holiday season, help your
customers find the perfect gift
with 302 Fine Jewelry, Stuller’s
collection of on-trend, relatable
pieces that help women express
their individuality. In stocking
the 302 Fine Jewelry range, you
will also receive ready-to-use
marketing materials and a preloaded
social media calendar.
stuller.com/302finejewelry
Set to become your everyday
favourites, the Pearl Mini Hoop
Earrings – crafted in 14-carat
gold-plated 925 sterling silver
– feature an on-trend baroque
pearl drop.
aniahaie.com.au
Bella Donna Silver
Harmony Ball pendants are timeless
and uniquely classic, coming from
the ancient tradition of chiming
jewellery, also known as ‘angel
callers’. The magical, gentle chiming
sound soothing and relaxing when
worn, bringing joy to everyday life.
Handmade in sterling silver, Harmony
Balls represent friendship and love,
which makes them the perfect gift for
loved ones.
Australian Fine Jewellery
This Sterling Silver Adjustable 50cm
Necklace featuring an Australian
South Sea cultured pearl is the musthave
jewellery piece for this summer.
Available in both 1mm and 2mm chain
thickness and in black Tahitian pearl.
australianfinejewellery.com.au
Affirmation Harmony Balls are often
given by best friends and family as a
special keepsake. Each day you wear
your Harmony Ball, you will set your
intention for yourself and for the world
with an affirmation, such as ‘love’,
‘prosperity’, or ‘peace’. Every time you
hear your pendant chiming, you will be
reminded of your affirmation, helping
to focus your mind toward positive
manifestation and potential.
belladonnasilver.com.au
Bronzallure
Duraflex Group
Australia
Fall for the
luminous details
in the Altissima
collection,
including sparkling
pavé cubic zirconia.
An audacious and
authentic feast for
the eyes, the Preziosa
collection blends a
selection of genuine
gemstones with either
white cubic zirconia or
black spinel.
bronzallure.com
Coeur de Lion
Timesupply
The Natural Selection collection includes beautiful
natural gemstones that give each piece a unique
and special look. This iconic GeoCube set features
gorgeous soft purple amethyst, soft green
aventurine, pastel pink rose quartz and white howlite,
interspersed with sparkling Swarovski crystals.
coeurdelionjewellery.com.au
Dansk Copenhagen
Timesupply
The spring/summer range introduces
new finishes in earthy matte grey and
gold, with statement earrings and
pendants, such as these softly looping
tiered earrings and pendants from the
Tabitha collection.
danskcopenhagen.com
52 | October 2020

Athan
Athan introduces the Italian-made
adjustable double-loop trace chain,
with lobster clasp. Available in
9-carat and 18-carat yellow, white,
and rose gold, and in lengths 42cm–
45cm and 50cm. Also available as a
standard chain.
For more than 20 years, Athan
has supplied the jewellery industry
with the highest quality 18-carat
Italian-made tennis mounts. In
addition to the classic four-claw
diamond cut style in a variety of sizes
and settings, Athan now offers the
traditional wire-prong style in sizes
3pt to 20pt.
athan.com.au
Blush Pink Diamonds
SAMS Group Australia
Each Blush Pink Diamonds piece
is created with certified pink
diamonds from the Argyle Mine
and carefully crafted in 18-carat
gold with fine white diamonds.
pinkkimberley.com.au
Diamonds by DGA
Duraflex Group Australia
DGA is proud to
partner with one of
the world’s leading
diamond jewellery
manufacturers to bring
you high-quality pieces
at exceptional price
points. Our diamonds
are all ethically sourced,
natural stones. The
range includes 9-carat
and 18-carat gold bridal
sets, wedding bands,
and fashion earrings,
bracelets, rings and
pendants. New designs
now available in rose
gold. dgau.com.au
Proudly distributed by
02 9417 0177 | www.dgau.com.au

Holiday Stock Special
JEWELLERY
Fabuleux Vous
The Le Ombré Crown Necklace
sits on a 45cm wheat chain and
is made from sterling silver,
with the coin pendant oxidised
to create an intriguing shadowed
effect. The matching Le Ombré
Crown Earrings feature the same
striking oxidised effect, and sit on
sterling silver hooks.
fabuleuxvous.com
Hurst
Miln & Co.
Hurst hinged silver bangles are
handmade and hand-engraved
in New Zealand. The 5mm EN
5G S/S Bangle (far right) is set
with five red garnets, and is
also available with sapphire,
amethyst or emerald.
milnco.com.au
Proudly distributed by
02 9417 0177 | www.dgau.com.au
Ichu Jewellery
Freshwater pearl is the centrepiece
of Ichu Jewellery’s new sterling
silver and gold-plated collection.
The elegant Twisted Pearl Necklace
frames a single freshwater pearl,
coupled with a fine cable chain –
perfect for layering or solo wear
and paired with the matching
earrings. Available in white pearl
with sterling silver, white pearl with
9-carat gold plated, and lavender
pearl with sterling silver.
ichu.com.au

S&S
Georgini
West End Collection
The newly-released Lusso
Earrings are a standout
feature of the Georgini Luxe
Collection. Featuring 4.5
carats of cubic zirconia,
the earrings make a
statement and are ideal
for bridal and other special
occasions. With new Georgini
collections released every
two months, the range
remains contemporary and
fresh all year round, catering
for seasonal influences and
celebrated dates.
georgini.com.au
STONES& SILVER
STERLING SILVER JEWELLERY
Create Special Memories
KL Diamonds
KL Diamonds is the home of all the incredible Argyle
natural fancy colours, from light champagne to the
deepest pinks. Locally made with a lifetime warranty,
KL Diamonds jewellery makes for the perfect Christmas
gift. The beautifully crafted Argyle Champagne Rain Drop
Pendant (left) features a stunning champagne centre
stone surrounded by white diamonds, while the Argyle
Pink Moon Ring (above) sparkles with a blush Argyle
pink set with sparkling white diamonds.
kldiamonds.com.au
Mark McAskill
New to the Mark McAskill range this year, these
bold E730 Shepherd Hook Drop Earrings
feature a pair of octagonal radiant-cut London
blue topaz in 8x5mm size. Eight round brilliant
cut diamonds in three claw settings highlight
the centre stones, totalling 0.10 carats. Also
available in morganite and peridot.
with the perfect Christmas gift for that
special young lady she will treasure forever.
The stunning new Penelope Diamond Ring
can be worn alone as a striking dress ring or
paired with a variety of engagement ring styles.
The dainty design features both marquise and round
brilliant cut diamonds in claw settings, styled to create
a crowned effect, totalling 0.18 carats. Available in
9-carat or 18-carat white gold, or platinum.
markmcaskill.com.au
FREE gift box included
Ph: +61 3 9587 1215
Email: info@stonesandsilver.com.au
stonesandsilver.com.au

Holiday Stock Special
JEWELLERY
Nomination
Composables
Timesupply
New from Nomination is
a collection of fun and
enticing composable links. From
cheeky little boys and
cute puppies to double links
for super mums, or 18-carat
gold links with crystal 18, 21,
30 or 40 numerals – perfect for
celebrating a milestone birthday
– the latest links make for the
perfect gift or self-expression.
nomination-jewellery.com.au
DGA diamonds are all natural and
ethically mined. The range includes
9K and 18K gold bridal sets, wedding
bands, fashion earrings, bracelets,
rings and pendants.
New season designs now available.
Paterson Fine Jewellery
Given the high gold price, it is an ideal time
to think of platinum for a strong fully-lined
men’s signet ring – one of this season’s
biggest trends. From classic minimalist
rings ready to be engraved, to stylish
designs set with natural gemstones, these
pieces are a must for your Christmas stock.
pfj.com.au
Proudly distributed by
Qudo
Timesupply
New from Qudo are the gorgeous
shimmering Swarovski Crystal Delite
interchangeable tops in Royal Blue,
Royal Red and Laguna Turquoise –
bright, vibrant colours perfect for the
warmer months. Also just released is
the new Aurora Boreale Sesto top (top
left), which picks up the colours around
it and changes as the light reflects.
Alongside the exciting fresh colours are
new shapes, including the softly rounded
10mm Sesto top. Meanwhile, the new
Canino Deluxe 10.5mm is a smaller,
flatter style, surrounded by crystals.
timesupply.com.au
02 9417 0177 | www.dgau.com.au

Holiday Stock Special
JEWELLERY
Nomination Instinct
The new Instinct Collection from
Nomination offers beautiful natural
stone bracelets in stylish designs,
ideal for layering and representing
excellent value for money. The
perfect unisex gift, these pieces
look great layered together or
with the Composable bracelets.
nomination-jewellery.com.au
Pandora
Pandora helps to celebrate the
holidays with elegant, hand-finished
jewellery that makes every moment
shine a little brighter. From
sparkling sterling silver to Pandora
Rose pieces, the Pandora Timeless
collection is designed to elevate and
celebrate. Give the gift that shows
loved ones how special they are.
au.pandora.net

Holiday Stock Special
JEWELLERY
Stones & Silver
Introducing the new Zodiac Range of rings
and stud earrings, made from 925 sterling
silver and measuring 10mm diameter. All 12
zodiac star signs are available. An ideal gift
for Christmas and all year round.
RAS
Timesupply
New to Australia and New
Zealand, RAS delivers the
best in Spanish design
and craftsmanship, with
a unique and artistic feel.
These beautiful earrings
from the Orange Bouquet
collection feature a
brightly coloured enamel
florals, perfect for a fresh
summer look, with a
matching pendant.
timesupply.com.au
The signet ring is an iconic piece of
jewellery for men, but these accessories are
also being embraced by women. Simple and
timeless, this feminine heart-shaped signet
ring is crafted from 925 sterling silver set with
a small sapphire. Also available in 14-carat
yellow gold plated and rose gold plated with
either a pink cubic zirconia or ruby.
stonesandsilver.com.au
Pink Kimberley
SAMS Group Australia
Argyle pink diamonds are beyond rare, and among
the most precious in the world. Pink Kimberley
jewellery is crafted from an exquisite blend of white
diamonds and natural Australian pink diamonds
from the Argyle Mine, located in the East Kimberley
region of Western Australia. An Argyle Pink Diamond
Certificate accompanies all Pink Kimberley pieces
containing pink diamonds greater than 0.08ct.
pinkkimberley.com.au
Platinum
Mens Signet Rings
Order now
to get in time
for Christmas!
Go platinum for a strong fully-lined men’s signet ring.
Don’t miss out on sales and ensure you’re keeping stock
of this season’s most trending item.
03 9555 9344
SALES@PFJ.COM.AU
WWW.PFJ.COM.AU

Thomas Sabo
Duraflex Group Australia
Discover the new Charming Collection from
Thomas Sabo! A limitless variety of dainty and
fun necklaces, bracelets, rings, pendants and
earrings awaits. Express your personality – stack
and layer sterling silver and gold plated designs
to create your own mix-and-match looks.
thomassabo.com.au
Simply
Better
Iconic. Swiss. Sustainable.
Worth & Douglas
Worth & Douglas is inspired by all things Australian
with the latest addition to the Memento line, the
Australiana Collection. From kookaburras to koalas,
these pendants are available now in silver or gold,
and each comes with Memento box and chain.
Signet rings are
enjoying a revival
right now as a key
jewellery accessory for
all genders and price
points, and sales are
on the rise. Worth &
Douglas’ new sleek and
solid signet designs are
available in all precious
metals and optionally
set with white and blue
diamonds.
wdrings.com
The stop2go
collection
This timepiece stands for
quality, precision and style.
The stop2go has the unique
functionality of the Original
Swiss Railway Clock: Whilst
the second hand temporarily
halts at 12:00, the minute hand
gracefully jumps to the next
minute in time. Since 1944,
this unchanged design offers
perfect readability day and
night thanks to the patented
BackLight design.
CRYSTAL ORNAMENT
Maleras
Shillcombe
Maleras – formerly known as
Mats Jonasson – is internationally
acclaimed for crystal sculptures of
wildlife, flowers and folklore themes.
It has been in production since
1890 at the glassworks in southern
Sweden’s ‘Kingdom of Crystal’
region. Using techniques such as
casting, glassblowing, hand painting
and engraving, Maleras reflects a
sustainable artisan tradition. Each
piece is a collectable work of art.
maleras.se/en
Proudly distributed by
02 9417 0177 | www.dgau.com.au

Holiday Stock Special
WATCHES
Baume & Mercier
Duraflex Group Australia
The Clifton Baumatic Day-Date,
Moon-Phase creates a new
aesthetic for the Clifton range,
exceptionally crafted in a solid
block of rose gold or steel.
It features a new, smaller
complication with a unique
look as well as a self-winding
movement with five-day
power reserve. In addition
to functional excellence, the
timepiece exemplifies Baume &
Mercier’s pursuit of proportion
and harmony in the choice of
materials and colours.
baume-et-mercier.com
Citizen
The Citizen Promaster
BN0158-18X is proof that a
dive watch can be fun and
functional. Equipped with
Eco-Drive technology, it is
powered by light and never
needs a battery. Featuring
a one-way rotating elapsed
time bezel and screw
down crown, it is stylishly
understated with its
dazzling emerald green
dial. It take you to your
limits and is the perfect
companion for a life of
adventure.
citizenwatches.com.au
Classique
SAMS Group Australia
Classique was created
to provide quality Swiss
timepieces to the
world, and now proudly
boasts the widest range
of watches in Australia.
We create innovative
timepieces whose
components are of the
highest quality and
possess a distinctive
and unmistakable
personality. Fashions
may change, but
Classique watches
retain their uniquely
timeless quality.
classiquewatches.com
EasyRead Time Teacher
Standard
EasyRead Time Teacher
EasyRead’s best-selling standard
watches feature a Seiko movement,
fabric strap and a special teaching
dial that children find very easy to
understand and remember. Mums and
dads will love this watch as it makes
teaching this skill simple and fun.
EasyRead Time Teacher
Waterproof
EasyRead Time Teacher
This high-quality waterproof watch
from EasyRead Time Teacher is
perfect for the active child. Milled
from a stainless-steel billet, with a
stainless screw-in back plate and
four O-rings at the crown, it has
a toughened glass lens recessed
0.5mm for protection, and houses a
Seiko movement.
easyreadtimeteacher.com
Maserati
West End Collection
Maserati tells a story
about the past and future;
about a brand that
became an icon of
elegance, uniqueness
and power. West End
Collection is extending
the incredibly popular
Maserati watch range
this year with the
Gentleman’s Accessories
Collection of Maserati
pens, bracelets and
cufflinks, to answer that
all-important question:
what do you give a man
who has everything?
maseratistore.com/au_en
Mondaine
Duraflex Group
Australia
Carrying through
Mondaine’s
distinctively
modern style,
the Official
Swiss Railways
Essence 41mm
watch is the ideal
Christmas gift for
the minimalist in
your life. As stylish
and smart as it is
bold and casual, this
is the ultimate goanywhere
timepiece.
mondaine.com.au
Pierre Lannier
Heart & Grace
The perfect balance
between glamour
and minimalism,
this timepiece
is designed with
beautiful Swarovski
crystals around
the dial. The watch
features a stainless
steel case and silver
face, paired with a
genuine white leather
strap. Elegant, chic
and inspired by
haute couture, it is
the perfect gift this
summer.
60 | October 2020

Cluse
Heart & Grace
An extension of
Cluse’s elegant
Feroce range, the
Feroce Petite features
a smaller case size
for a delicate and
feminine look.
The gold mesh
strap and blue
mother-of-pearl dial
add to the watch’s
uniquely stylish
finish. Packaged in
a limited-edition gift
box, it is the perfect
addition to the
Cluse collection.
cluse.com
The simplest time teaching
system for children
Be Smart | Be Cool
12 months warranty
JAG
Duraflex Group
Australia
JAG is internationally
renowned as an iconic
Australian brand. The
new JAG fashion watch
collection offers a range
of styles for men and
women with a casual
urban feel.
jag.com.au
Luminox
Duraflex Group Australia
The Bear Grylls Survival
3749 timepiece is designed
for the extreme, combining
the legendary ability
of Luminox watches to
withstand the elements
with special new details
from Bear Grylls. Whether
it’s the countdown
dive zone, the SOS in
Morse code or the 300m
water resistance, these
timepieces will be your
trusty companions and
help you conquer any
conditions. Also available
with an orange strap
equipped with a compass.
luminox.com.au
Bright Colours • Interchangeable Straps
Cool Designs • Perfect Gift Idea
Their parents are
your existing customers.
Made and
designed in France
with an automatic
movement, this
statement-making
watch has been
crafted so that
you can see the
intricate movement
through the glass.
A classically stylish
yet striking addition
to any man’s wrist,
the watch features a
stainless steel case
and matching link
strap with a black
skeleton dial.
pierre-lannier.com
Police
Duraflex Group
Australia
The Batur model
from Police,
pictured with blue
dial and dark blue
silicon strap, is
equipped with both
analog and digital
time display. The
large 48mm case
and bolt-and-screw
designs add to the
tough masculine
feel. Water
resistant to 50m.
policelifestyle.com
EasyRead fashion watches feature a
unique time teacher dial that children
understand, with a step by step system
they can easily remember.
AWARD WINNING DESIGN
Speak to Roger on 0418 970 214
info@easyreadtimeteacher.com
www.easyreadtimeteacher.com

TREAT YOUR MAN
THIS CHRISTMAS!
WITH A RINGERS WESTERN
OUTBACK WATCH FOR
ONLY RRP $119 .00
(normal RRP $169)
Holiday Stock Special
WATCHES
Sekonda
Duraflex Group Australia
The SK1845 Men’s Watch
(right) features a stainless steel
case with a stylish blue and
champagne bezel, with matching
blue dial and baton time markers
and a date function. Meanwhile,
the SK40035 Ladies’ Watch (far
right) boasts elegant, feminine
details including a white motherof-pearl
dial with crystal halo
and time markers, paired with a
classic fine mesh strap.
dgau.com.au
TW Steel
Duraflex Group Australia
The limited-edition ACE403 (left)
offers the highest quality at an
exceptional price. Powered by a
Swiss chronograph, it features antireflective
sapphire crystal, Swiss
Super Luminova hands and time
markerts, water resistance to 300m,
and a five-year worldwide warranty.
Meanwhile, the Canteen TW1013
gives the original Canteen timepiece
a fresh new look. It combines a
steel case with shiny bezel and
anti-reflection sapphire crystal with
a stylish dark grey strap of crocodile
leather lined with black rubber.
au.twsteel.com
WATCH BANDS
TOTAL VALUE
RRP $203 .95
And receive a
Trucker hat for free
VALUED AT RRP$34.95
• 100m Water Resistant
• Screw In Crown
• Screw Down Back
• Stainless Steel
• Day / Date Indicator
• Anti Smash Glass Protection bezel
@RingersWestern
www.RingersWestern.com
@ringerswestern
Duraflex Watch Bands
Duraflex Group Australia
This stainless steel link watch
band with steel buckle is the
perfect companion for your dive
watch. dgau.com.au
Hirsch Straps
Duraflex Group Australia
Embodying classic style, the
18mm Crocograin Exotic
Embossed Leather Strap in
Brown adds a sophisticated
touch to your timepiece.
hirschstraps.com
E orders@samsgroup.com.au
W samsgroup.com.au P 02 9290 2199

Holiday Stock Special
LOOSE STONES
K&K Export Import
With Australia’s widest range of gemstones, K&K can
assist you with all your coloured gemstone needs.
Lively blue and teal shades, minty greens, warm peach
and pink gems are our current favourites for their
brightness and cheer. Natural fancy colour diamonds
are also available in a variety of sizes and hues, as well
as rose cuts and salt-and-pepper diamonds.
Discover a rainbow of possibilities with K&K.
03 9654 4449
Argyle Pink Diamonds
SAMS Group Australia
When thinking pink, look no
further than SAMS Group
Australia. With one of the largest
ranges of Australia’s most
precious Argyle Mine diamonds, all
SAMS Group pink stones are cut
and polished by Argyle, with Argyle
certificates and lot numbers.
pinkkimberley.com.au
ATHAN
WHOLESALERS
(03) 9663 2321
ATHAN.COM.AU
- IMPORTERS OF FINE ITALIAN JEWELLERY -

Holiday Stock Special
LOOSE STONES
Fabuleux Vous
Featuring Forté, a classic sterling
silver collection representing all
things strength & courage.
Kimberley Rough Diamonds
Established in 2011, Kimberley Rough Diamonds
specialises in uncut, natural diamonds straight
from the Argyle Mine. Explore your creativity and
try a rough diamond in your jewellery design.
kroughdiamonds.com.au
Kunming Diamonds
The Argyle Tender is
a beguiling treasure
of nature that many
aspire to see and few
get to collect. Kunming
Diamonds, an Argyle Pink
Diamonds Authorised
Partner, presents this
4PP diamond – one of
only 124 round brilliant
cut Fancy Intense
Purplish Pink diamonds
offered at the Tender.
Rarity meets
exquisite beauty in
this pear-shaped VS2
pink diamond, which is
part of a finite supply
of Argyle stones.
represents a rarity of its
gems. Its colour is 5P
on the internationally
acknowledged pink
grading system, placing
it firmly among the elite
ranks of iconic pink
diamonds.
Blue diamonds
represent less than one
per cent of all fancy
colour diamonds. This
Fancy Intense Blue
oval-shape diamond in
VVS clarity has a unique
combination of shape,
colour saturation and
intensity that only 1 out
of 60,000 fancy colour
diamonds displays.
Kunming is proud to
have this stunning blue
stone in its collection.
Yellow diamonds
have an illuminating
quality that reflects the
radiant brilliance of the
sun. This Fancy Intense
Yellow cushion-cut
diamond is one of only
a handful with similar
characteristics in the
2-carat weight category.
kunmingdiamonds.com
Stuller
The Notable Gems curated collection from Stuller features gems cut for
maximum beauty and colour impact. The selection includes excellent cuts
and makes, unusual shapes, larger sizes, and unique, breathtaking stones
such as our new multicolour tourmalines.
stuller.com/notable-gems
www.fabuleuxvous.com
E: helen@fabuleuxvous.com | P: +64274203137

Holiday Stock Special
TOOLS, EQUIPMENT & SERVICES
Bon Bon Marketing
Increase your December sales by
38 per cent this year! The concept is
simple – any customer who spends
$150 or more in-store gets to pick a
bon-bon off the Christmas tree. Each
bon-bon contains a beautiful highquality
piece of jewellery, with one
containing a stunning grand prize of
a $3,000 diamond ring. However,
the key to success with this
promotion is in the details, which
Bon Bon Marketing has refined to
a science over 18 years. Now, the
complete formula is available to you.
Book now to make your
Christmas shine in 2020.
0408 435 801
Chemgold
With the high price of
gold and palladium, the
Chemgold team have
developed the industry’s
most innovative 18-carat
white gold alloy. Using an
exclusive 13.2 per cent
PGMs formula, you will
save approximately $10
per gram. Apart from the
value it represents, this
new alloy is a way to offer
your customers a unique
option for their next special
order. Available as casting or
stockgauge.
chemgold.com
Bear Grylls Survival
3740 Master series
More on luminox.com.au
Proudly distributed by
02 9417 0177 | www.dgau.com.au

Holiday Stock Special
TOOLS, EQUIPMENT & SERVICES
Gemax
Stuller
The Gemax Pro II Digital Microscope
is ideal for taking high-resolution
pictures of rings, earrings and smaller
jewellery pieces, as well as diamonds
and gemstones. The professional
microscopic lens – paired with the LCD
viewing panel – provides a crystalclear
image, which can be captured
and saved in an SD memory card.
stuller.com/tools
Watch: Kediri
Foredom
Labanda
Foredoms’ new variable speed MADC20
Dust Collector is whisper quiet at 52dbA,
with powerful suction of 115CFM. A
double filter system of a polycarbonate
collection chamber and HEPA filter
eliminates more than 99 per cent of
debris up to 0.3 microns. A quality-built
single-station unit, the MADC20 has
casters for easy portability,
is simple to use, and is nearly
maintenance-free.
labanda.com.au
Model: Luang
Proudly distributed by
Morris & Watson
With a dedicated
casting department and
more than 40 years of
experience Morris &
Watson are continually
working to provide
high-quality products,
expert knowledge and
friendly service. Visit the
website to learn more
about CAD Design, 3D
Printing, Mould Creation
and Casting with Morris
& Watson.
morrisandwatson.com
02 9417 0177 | www.dgau.com.au

Peter W Beck
Peter W Beck, Australia’s most trusted,
privately owned gold refiner and assayer
has, over the past 40+ years, carved out
a reputation for honesty, accuracy and
reliability. We have the knowledge and
expertise required to refine gold, silver,
platinum and palladium to the highest
standard. We are proud to have achieved two
Quality Management System ratings, putting
us at the forefront of Australian refining,
manufacturing and dsign. We employ a team
of highly-skilled professionals with vast
experience in the unique requirements of
refining using sophisticated systems and the
latest technology.
CE4041 CEO TECH
This new CE4041 makes a strong statement.
Powered by a Swiss made chronograph movement,
it features anti-reflection sapphire crystal,
and a comfortable black silicon rubber strap.
DISCOVER TW STEEL
Combined with the Peter W Beck Original & Accurate
Ring Stick, the Perfect Fit Classic Tray is designed to make
it easy for your customer to choose a ring in a profile,
width and finger size that is their perfect fit. The Classic
Fit Tray holds Peter W Beck’s unique selection of 49
classic wedding rings, covering the most popular profiles
and common finger sizes, from I to Z7+, and seven widths.
pwbeck.com.au
Proudly distributed by
02 9417 0177 | www.dgau.com.au

Holiday Stock Special
TOOLS, EQUIPMENT & SERVICES
Palloys
Now you can access
all of Palloys’
products and services
in one location
through the new
proprietary ordering
system and software.
Register today and
experience all Palloys
has to offer.
palloys.com
Mats Jonasson
Maleras
Hand Made Swedish
Crystal
Since
1890
Proudly distributed by
M 0425 766 668
E shillcombe@bigpond.com
A 20 Sandham Street, Elsternwick 3185, VIC
W www.matsjonasson.com.au
02 9417 0177 | www.dgau.com.au

Holiday Stock Special
TOOLS, EQUIPMENT & SERVICES
Podium
View Podium’s library of free eBooks to help you navigate the
best business practices in the Information Age. Podium is
a software platform that helps jewellers interact with their
customers through SMS text messaging and influence purchase
decisions by streamlining the collection and management of
online reviews. It helps businesses be found and chosen, and to
gain insights into their customers’ experience.
podium.com/ebooks
Yehuda
The Sherlock Holmes 2.0 CVD and HPHT
Lab-Grown Diamond Detector can identify
mounted and unmounted diamonds in
bulk, quickly and accurately. When tested
by Project Assure – an independent and
comprehensive assessment program
– it detected 100 per cent of lab-grown
diamonds. Simple to use and with a compact
and portable design, the Sherlock Holmes
is also one of the most affordable detectors
in its category. It is an indispensible
tool for jewellery retailers.
yehuda.com
AUSTRALIAN
JEWELLERY TOOLS
WHOLESALER
SPECIALISING IN QUALITY JEWELLERY
TOOLS & EQUIPMENT WITH EXCEPTIONAL SERVICE
Glues
(07) 3876 7481
sales@labanda.com.au
FAX: (07) 3368 3100
www.labanda.com.au
Australian Fine Jewellery is the trusted source
for the very best in pearl jewellery and mountings in
sterling silver, 9K, and 18K gold.
With over 30 years experience, we have something for
everyone; boasting the largest stock of loose
Australian pearls and pearl jewellery in Australia.
Call or email us for a FREE catalogue today.
m: 0407 777 966 e: tony@australianfinejewellery.com.au
australianfinejewellery.com.au

Only $6,495 USD
yehuda.com +1.212.221.5985

THE SHErlOck HOlmES 2.0
lab-Grown Diamond Detector
by
12 Synthetic Diamond Detectors that can check multiple stones and
jewellery were tested by the ASSUrE Program.
ONlY 2 were found to detect All of the Synthetic Diamonds tested.
Thus, giving you 100% PrOTEcTION!
For your convenience, please check out the table below for the synthetic detection rate of
all 12 detectors that can test multiple stones and jewellery at once.
Manufacturer
Detector
Synthetic Diamond
Accuracy (%)
Price in
$USD
Yehuda
The Sherlock
Holmes 2.0
100% $6,495
De Beers Group SYNTHdetect 100% $18,500
NGTC GV5000 99.00% $43,200
DRC Techno J-Smart 89.40% $22,499
Arotek/GII QChKAdC 88.90% $7,700
DRC Techno D-Secure+ 85.90% $11,999
DRC Techno J Detect 9000 85.40% $9,999
Gemometrics GemPen 84.90% $2,300
DRC Techno J.Mini 84.40% $6,499
Massive Tech Lab G-certain 82.40% $9,999
Massive Tech Lab J-Certain 80.40% $13,999
Taidiam Technology
DiamondDect 5
(HPHT only)
77.40% $5,730
Scan the QR Code below to read the full report of the Assure Program
performed by UL Laboratories, and see for yourself.
yehuda.com

CELEBRATING
Local Talent
LINNEYS
Hand Carved Pearl &
Diamond Pendant
Metal: 18-yellow gold
Gemstones: Baroque
Australian South Sea
pearl, white diamond
Alan Linney
Perth, WA
JEWELS OF THE KIMBERLEY
Alluvial Three-Piece Suite –
Bangle, Cocktail Ring & Pendant
Metals: 18-carat white and yellow gold
Gemstones: White, yellow, cognac,
and champagne diamond
Jodi Penfold
Broome, WA
BERJANI
JEWELLERS
Waves Ring
Metal: 18-carat
white gold
Gemstones: White
diamond
Berj Ohanessian
Sydney, NSW
Australia and New Zealand are not only home to some of the
rarest gemstones in the world, but also the most talented jewellers.
Jeweller showcases a tapestry of local masterpieces that have been
meticulously crafted with great artisanship, right here on home soil
JULIAN BARTROM
Le Dragonfly En Tremblant Brooch
Metal: 18-carat yellow gold
Gemstones: Blue topaz, peridot, green,
blue and pink tourmaline, Ceylon
sapphire, white diamond
Julian Bartrom
Auckland, NZ
ROD VALENZ
Gatsby Ring
Metal: Platinum
Gemstones: Ceylon sapphire,
white diamond
Rod Valenz
Melbourne, VIC
72 | October 2020

JAN LOGAN
Samos Earrings
Metal: 18-carat white gold
Gemstones: Turquoise,
London blue topaz,
blue topaz
Roselee Modica
Sydney, NSW
THE VILLAGE
GOLDSMITH
Tane Pendant
Metal: 18-carat
yellow gold
Gemstones: Pink and
purple sapphire, paua,
baroque South Sea pearl
Ian Douglas
Wellington, NZ
DAVID MICHAEL JEWELS
12-Carat Ring
Metal: 18-carat yellow gold
Gemstones: Brown and white
diamond, violet sapphire
David & Michael Robinson
Gold Coast, QLD
CALLEIJA
Cerelia Mint Tourmaline Ring
Metal: 18-carat rose gold
Gemstones: Mint tourmaline, vivid
fancy colour diamonds
John Calleija
Gold Coast, QLD
MATTHEW ELY
JEWELLERY
Heliodor, Diamond
& Ruby Earrings
Metal: 18-carat yellow gold
Gemstones: Heliodor, ruby,
white diamond
Matthew Ely
Sydney, NSW
GERARD McCABE
Kaleidoscope
Earrings
Metals: 18-carat
white gold
Gemstones: Blue,
purple, pink, orange,
and white sapphire
Gerard McCabe
Adelaide, SA
MUSSON JEWELLERS
Casablanca Ring
Metals: 18-carat white
and rose gold
Gemstones: Ceylon
sapphire, pink and
white diamond
Olivar Musson
Sydney, NSW
October 2020 | 73

INSIDE
My Store
Rebus Signet Rings
LONDON, UK with Emmet Smith, founder and managing director • SPACE COMPLETED January 2018, following a five-month renovation
4Who is the target market?
The Rebus customers are a diverse bunch – young,
old, male, female, traditional, hip, traditionally-hip,
and many from overseas too.
I did not design the store with a particular
focused demographic in mind; I just went with
my gut and created an environment that I wanted
to spend time in – and one that my staff were
also proud to be part of and in which they could
feel comfortable.
The ambience feels warm, like a relaxed, welcoming
members’ club. This is achieved through the colour
palette, gold fixtures and details, and inviting
furniture. I figured if I could get the basics right and
my staff felt good, then this would naturally translate
to our customers, who we think of as guests.
4Which features encourage sales?
I’ve never had the attitude of ‘encouraging sales’.
I’ve always felt very proud – even protective – of my
craft, which is hand-engraving, so I want to display
and communicate the processes Rebus craftsmen
go through to create our jewellery.
So, our display cabinets are not stuffed full of
product. Instead, I like to be a bit more considered
and tell a story by displaying things that pose
questions and conversation. ‘Communicate
and celebrate’ is our ethos. The bar helps
with that as well!
4What is the store design’s ‘wow factor’?
The people. Downstairs, the Rebus workshop
has 10 incredible craftsmen.
To the unfamiliar eye, it appears crammed with all
sorts of strange-looking objects – chisels, arcane
heraldic imagery, jars of liquids and powders, gas
torches burning, and Victorian reference books.
Introducing our guests to this environment
and the Rebus team is a pleasure which
everyone appreciates.
74 | October 2020

FEATURE
Refining Stock
LIQUID
GOLD:
REFINING
& COVID-19
Booming precious metal prices, coupled with lower
jewellery spending, have increased demand for
refining services in 2020, writes ARABELLA RODEN.

RECENT STATS
Precious Metal
Trends
During times of economic uncertainty,
conventional wisdom dictates
that precious metal prices rise;
this is attributed to increased demand from
investors, who flock to ‘safe haven’ assets
which historically hold their value.
This trend has held true during the current global
health crisis due to COVID-19. “Metal prices had
already been trending positively pre-COVID-19. The
pandemic has lead to ‘binge-buying’ of investment
bullion which has, in turn, affected metal prices for
the jewellery industry,” says Chris Botha, operations
manager Pallion.
Peter Beck, managing director of Adelaide-based
company Peter W Beck, which refines gold, silver,
platinum and palladium, notes, “We have observed
that precious metal prices at this point in time are
strong. However, we are not sure if this is directly
related to the COVID-19 pandemic or the general
uncertainty of the world’s economic position [due
to other factors].”
“Metal prices had already been trending
positively pre-COVID-19. The pandemic has
lead to ‘binge-buying’ of investment bullion
which has, in turn, affected metal prices
for the jewellery industry”
CHRIS BOTHA
Pallion
One of those factors may be the ongoing trade
tensions between the US and China.
“Precious metals have always filled that [safe-haven]
role,” says Richard Hayes, CEO The Perth Mint, which
is owned by the Government of Western Australia and
refines the majority of gold mined onshore, in addition
to gold and silver scrap.
At the same time, restrictions on retail trading, rising
unemployment, and plummeting consumer confidence
have combined to flatten discretionary spending on
luxury items, depressing jewellery demand.
The combination of higher prices for metals and lower
demand for finished jewellery makes metal refining an
attractive option for jewellers.
Darren Sher, director Chemgold, says, “While the
impact of COVID-19 has been devastating for us all,
$2,048
gold price per
ounce in US Dollars,
August 2020 –
a record high
Source: World Gold Council
46%
decline in global
demand for gold
jewellery, H1 2020
Source: World Gold Council
27%
second-quarter
decline in
platinum jewellery
demand
Source: World Platinum
Investment Council
$29
silver price per
ounce in US
Dollars, August
2020 – a sevenyear
high
Source: Stockhead
$2,229
palladium price
per ounce in
US dollars,
September 2020
Source: Kitco
the one positive aspect for the jewellery industry is
that precious metal stock can be refined, and jewellers
can then get the fine metal back, receive payments, or
pay their accounts.”
He adds, “With the major increase in the gold price
in the last few years, in some cases, there may be
minimal loss on the original cost of the metal they
purchased years ago.”
The potential is not limited to gold, however – it also
applies to other major refining metals, including
silver, platinum, and palladium.
Golden opportunity
The gold price reflects myriad factors beyond mere supply
and demand, as it is frequently used as a financial “hedge”
against currency fluctuations, inflation, and interest rate
cuts, as well as geopolitical instability.
Notably, the gold price has been rising for nearly a
decade – and has increased by 30 per cent this year
alone. In July 2020, it surpassed its previous high of
$US1,921 – reached in 2011 – and in August broke
through the $US2,000 per ounce threshold.
Hayes explains that the price of gold has also been
“turbo-charged” in Australian Dollar terms, due to
the exchange rate with the US Dollar.
“While the impact of COVID-19 has been
devastating for us all, the one positive
aspect for the jewellery industry is that
precious metal stock can be refined, and
jewellers can then get the fine metal back,
receive payments, or pay their accounts”
DARREN SHER
Chemgold
At the same time, demand for physical gold has been
constrained by the pandemic.
“The global gold market has been turned on its head
by the novel coronavirus [COVID-19], with demand in
China and India collapsing due to lockdowns while
in the West investors rushed to buy bullion as a safe
asset to weather a period of financial turmoil,” noted
a recent Reuters report.
Indeed, the World Gold Council’s Gold Demand Trends
Q2 2020 report, published 30 July, revealed that global
gold jewellery demand had fallen to half its 10-year
average, and tumbled 46 per cent in the first half of
2020 compared with the same period in 2019.
October 2020 | 77

REFINING FEATURE | Liquid Gold
QUICK NUMBERS
Notable
Trends
“Q2 saw a continuation of the hostile
global environment for gold jewellery
demand. Lockdown restrictions
shuttered many markets, and
consumers faced the challenging
consequences of economic downturn
at a time when gold prices were
moving from strength to strength,
making affordability an issue for
many,” the report explained
During the same period, platinum
jewellery demand fell 27 per cent,
according to The World Platinum
Investment Council (WPIC)’s most
recent Platinum Quarterly report.
“Lockdown restrictions
shuttered many markets,
and consumers faced the
challenging consequences
of economic downturn at a
time when gold prices were
moving from strength to
strength, making affordability
an issue for many”
– Gold Demand Trends Q2 2020 report
WORLD GOLD COUNCIL
Platinum jewellery manufacturing
saw sharp declines in China and India,
alongside a collapse in demand in the
US and European retail markets.
Meanwhile, silver jewellery
fabrication is predicted to decrease
by 7 per cent in 2020 – its most
significant contraction in four years.
Yet Hayes points out that despite
reduced demand from the jewellery
sector, the silver price has mirrored
gold’s upward trajectory.
“Silver has very much followed gold,
but in the last couple of weeks silver
prices have strengthened more
strongly – they have outpaced the
gold price increases [in the first
quarter of 2020],” he says.
Adam Van Sambeek, treasury
manager at Morris & Watson in
Auckland, notes that alongside
increased demand from investors,
“supply constraints brought on by
trade and production restrictions
have also pushed gold and silver
prices higher”.
These factors – ‘safe-haven’ appeal
57%
increase in
palladium price
per ounce, 18
March – 22
September 2020
50%
capacity of South
African gold,
platinum and
palladium mines
under COVID-19
restrictions
Peter W Beck.
360k
ounces reduction
in platinum supply
due to COVID-19
restrictions
Source: World Platinum
Investment Council
7%
decrease in
silver jewellery
fabrication
throughout 2020
Source: The Silver
Institute
and reduced supply – assisted gold,
silver, platinum and palladium prices
to a robust recovery from an initial the
coronavirus demand shock, which saw
prices plunge in March as the pandemic
peaked in the US.
“Silver has very much followed
gold, but in the last couple
of weeks silver prices have
strengthened more strongly –
they have outpaced the
gold price increases [in the
first quarter of 2020],”
RICHARD HAYES
Perth Mint
In particular, palladium – a key agent in
creating white gold, aside from nickel
– fell 43 per cent from its February
peak of $US2,754, driven by a dramatic
decrease in demand from the Chinese
automotive industry.
However, by 22 September, it had
recovered to $US2,229.60.
Indeed, palladium has been the best
performing commodity for the past two
years, according to Forbes, with prices
increasing by more than 85 per cent
between August 2018 and March 2019.
The pandemic’s impact on platinum
is less dramatic, and prices have
also stabilised. The WPIC report,
published 8 September, noted, “Due
in part to supply issues unrelated to
the pandemic, plus the robust nature
of physical investment demand, the
potential efects of the pandemic on
platinum’s market balance are far less
negative than previously expected.”
It predicts supply and demand will remain
relatively balanced for the remainder of
2020, with declines of 14 per cent and 11
per cent respectively.
The lower volumes are largely
attributed to COVID-19 closures and
restrictions in South Africa, the largest
producer of the metal. South Africa is
also also a key producer of gold and,
notably, palladium, alongside Russia.
Russian palladium mines have been
largely unaffected by the pandemic, and
its production of the metal is expected
to increase by 2.5 per cent for 2020,
according to an analysis by data firm
Fitch Solutions.
The world’s largest palladium producer,
Nornickel, has not changed its 2020
guidance, with operations chief Sergey
Dyachenko saying, “We expect saleable
metal production volumes to recover
during the rest of this year.”
Refined strategy
With precious metal prices remaining
high and jewellery demand subdued,
jewellers have an opportunity to create
liquidity through refining.
“In terms of normal working stock,
having stuff just sitting around –
especially if you’re paying lease costs
on it – is relatively expensive.
“So having it refined and turning it into
cash, so that you can recycle that cash
into additional manufacturing stock,
would tend to make a lot of sense at
this stage,” says Hayes.
“This period of strong precious
metal pricing and difficult
trading is an opportunity
for jewellers to manage any
precious metal stock, in either
finished or unfinished form,
through refining... It is possible
that precious metal value alone
will return more than the
original purchase price of the
product”
PETER BECK
Peter W Beck
At Chemgold, Sher observed that when
COVID-19 restrictions came into effect,
“The demand for our refining services
increased substantially. Jewellery
retailers and manufacturers sent in
large amounts of scrap and lemel to
ensure they could have extra funds if
needed.
“We also found an increase in the number
of sweeps received. With restrictions
easing, we have found the demand is back
to its normal level,” he adds.
At Pallion, Botha says, “Our refinery
facilities refine next to half of Australia’s
precious metals output and have
continued to work round the clock to
meet marketplace demand since the
pandemic. We have seen record-high
refining jobs coming through [from] the
jewellery industry.
78 | October 2020

SUMMARY
Key Points
“Many jewellers during these trying
times have been conducting spring
cleans and sending their lemel scraps
for refining to assist them to weather the
storm. This was also compounded by the
upcoming end of the financial year.”
Meanwhile, Van Sambeek says,
“Temporary [store] closures as a
result of COVID-19 gave our clients an
opportunity to do some long overdue
house cleaning.
“Due to the high gold and
palladium prices, high-carat
and white metals containing
platinum and palladium are
the best to refine first”
ADAM VAN SAMBEEK
Morris & Watson
“The high gold price, in conjunction
with economic uncertainty, has seen an
increase in refining, with many clearing
old or slow-moving stock, surrendered
for cash or metal.”
Beck has also noticed a “definite increase”
in demand for precious metal refining in
recent months. “We believe this is mainly
to act as a source of cash flow for both
retail and manufacturing jewellers in these
difficult times,” he explains.
“This period of strong precious
metal pricing and difficult trading is an
opportunity for jewellers to manage any
precious metal stock, in either finished
or unfinished form, through refining.”
Beck recommends jewellers begin by
refining old stock that has been in store
for more than four to five years.
“Because of the current strong precious
metal prices, it is possible that precious
metal value alone will return more
than the original purchase price of the
product,” he adds.
Meanwhile, Sher says jewellers should
refine “fairly regularly” as fees are low
in proportion to the payments received
for precious metals.
“The advice is to, where possible,
keep all your metals separate in these
categories: silver, yellow gold, white gold
and platinum,” he adds.
“This can make refining charges more
economical as two-metal refining (gold/
silver) is less expensive than four-metal
(gold/silver/platinum/palladium) and
platinum-only. We provide guidance on
how to separate metals to ensure fees
are as low as possible.”
Van Sambeek advises, “Due to the high
gold and palladium prices, high-carat
and white metals containing platinum
and palladium are the best to refine
first.”
“But as most metal prices are up, any
refining will help release funds quickly
during this time,” he adds.
And when choosing a refiner during
the uncertainty of COVID-19, Hayes
recommends taking a careful approach,
pointing to several US refiners who
have declared bankruptcy in recent
years, leaving their customers’ metal
in the general creditors’ pool.
“Avoid taking unwanted credit risks –
especially if there are financial
liability issues,” he
advises.
Botha
adds,
“There are very
few true ‘refiners’ in Australia – many
who claim to be refiners are merely
aggregators. Make sure you send your
refining job to an entity that actually
refines; otherwise all you are doing is
paying a middleman.
Peter W Beck.
“We are the only independent London
Bullion Market Association (LBMA)
and Shanghai Gold Exchange (SGE)-
accredited refinery in Australia and you
can take a virtual tour of our refining
facilities on YouTube.”
Indeed, stock management is a critical
component of retail even in periods
of growth, but the importance of
generating cash flow by refining – where
appropriate – is vitally important during
the current crisis.
As jewellers begin to reopen their doors
and consumer spending on discretionary
items increases throughout the second
half of 2020, a solid refining strategy
strengthens a jewellery business’
position – and gives it a better chance
to survive and thrive.
Precious metal
prices have
increased
Economic
uncertainty
has pushed
investors towards
‘safe havens’
Jewellery
demand has
declined
Falling consumer
confidence
and retail
restrictions due
to COVID-19 have
combined to
reduce jewellery
sales
Refining can
financially
benefit
jewellers
In the short-term,
refining can assist
in maintaining
liquidity
Stock
management
is critical
Post-crisis,
refining ensures
jewellers have
fresh stock
and resources
October 2020 | 79

FEATURE
Diamond Industry Update
CORONAVIRUS
ROUGHS UP
DIAMONDS
The coronavirus has forced shutdowns at every stage of the diamond ‘pipeline’, from mines
to bourses, the polishing centre of Surat, and retailers. Yet, the pandemic may represent an
unlikely opportunity to rebalance the supply chain, writes ARABELLA RODEN.

RECENT STATS
Impact on
the Diamond
Industry
The unprecedented challenge of the
COVID-19 pandemic has added
another burden to the already fragile
international diamond industry, producing
concurrent shocks to both demand and supply.
“We’ve never had an environment where commercial
activity right across the whole pipeline, let alone the
whole luxury goods industry, has simply come to a halt,”
David Prager, executive vice-president corporate affairs, De
Beers, said earlier this year.
Most significantly, the virus has crippled the retail sector in the
US, which is the world’s largest diamond jewellery market and
has been the epicentre of the pandemic since late March.
Limitations on social interaction, as well as widespread
unemployment, financial uncertainty, and reduced
confidence saw the country record a 7.5 per cent reduction
in consumer spending in March, followed by a 12.9 per cent
decline in April.
While the ensuing months have seen a modest recovery,
the lost ground is yet to be regained.
Examing retail by category, a New York Times analysis
of data collected by market research firm Earnest Data
– which tracks the debit and credit card purchases of 6
million Americans – found jewellery spending was 75 per
cent lower in the week to 1 April than it was in 2019.
Notably, publicly-listed US-based jewellery company Tiffany
& Co. reported a 45 per cent decline in US revenue for the
first half of the year.
This was, in part, responsible for French luxury
conglomerate Moët Hennessy Louis Vuitton SE (LVMH)’s
decision to pull out of its planned acquisition of the jeweller.
Even with many US states easing lockdown restrictions,
industry experts note that the retail jewellery sector’s
recovery will not be immediate.
The JCK State of the Industry Report 2020, published in
September, surveyed nearly 1,000 retail jewellers, with 58
-75%
US jewellery retail
spending in the
week to 1 April
Source: Earnest Data
$US3.9bn
Indian polished
diamond exports
Apr. - Aug. 2020.
A decline of
41 per cent on 2019
Source: GJEPC
58%
US jewellers who
predict a recovery
to 2019 levels will
take eight months
or more
Source: JCK State of the
Industry Report 2020
66%
decline in polished
imports to Antwerp,
June 2020
Source: Antwerp World
Diamond Centre
per cent predicted a recovery of their business to 2019
levels would take eight months or more; 11 per cent put
the figure at two years.
With the US struggling, some industry experts pinned hopes
for a robust recovery on the Chinese market; in April, Kent
Wong, managing director of Chow Tai Fook – China’s largest
jewellery company – predicted it would take “three or four
months” for the company to be “back to normal”.
“We’ve never had an environment where
commercial activity right across the whole
pipeline, let alone the whole luxury goods
industry, has simply come to a halt”
DAVID PRAGER
De Beers
However, its quarterly report for the three months to June
30 indicated sales had declined 20.2 per cent compared
with the same period in 2019; same-store sales declined
by 75.5 per cent in Hong Kong and Macau, and 11.2 per
cent in Mainland China.
The results were even more dismal for major jewellery
retailer Luk Fook, which also operates stores throughout
the Chinese mainland, Hong Kong and Macau. Revenue
was down 60 per cent during the June quarter, while
profits slid 80 per cent.
Matters of the midstream
Alongside retail, the diamond midstream has also
suffered. In Antwerp, polished imports fell 71 per cent
in March and exports 51 per cent.
The trend continued in June, with only a marginal
improvement: imports declined 66 per cent, and exports
44 per cent, according to figures from Antwerp World
Diamond Centre.
In India, where approximately 90 per cent of the world’s
Otober 2020 | 81

CORONAVIRUS ROUGHS UP INDUSTRY | Diamond Industry Report
L to R: Jewellery retailers around the world are hoping for consumer confidence to return
QUICK NUMBERS
Mined Over
Matter
diamonds are cut and polished, the
manufacturing industry was already
under pressure even before the
pandemic reached its shores.
The sector has also
been embroiled in an
ongoing liquidity crisis
since 2018, attributed
to lack of demand and
tightening of lending
criteria.
Dinesh Navadiya,
Gujarat regional chairman of the
Gem & Jewellery Export Promotion
Council (GJEPC), stated, “The industry
has already witnessed [a] $US846
million fall in exports in February 2020
compared to the same month last year,
and the crisis is deepening further
and could get worse than what was
witnessed during the 2008 [crisis].”
A GJEPC provisional report for the
April–August quarter noted that cut
and polished natural diamond exports
totalled $US3.9 billion, compared with
$US8.3 billion for the same period in
2019 – a decline of 41 per cent.
Rapaport reported that US polished
diamond imports “fell 50 per cent, to
$US806 million, in July” – a steeper
decline than in June. Approximately 39
per cent of Indian-cut diamonds are
exported to the US and 41 per cent to
Hong Kong and Mainland China.
With sluggish demand from these
markets, Indian manufacturers have
been left with a significant amount of
excess inventory – to the point that
trade organisations have called for
members to stop importing rough.
“A good part of the inventory is not
moving, and the trade should be
cautious and take steps to reduce
inventory further,” the GJEPC said
in a statement issued in August.
Diamond industry analyst Chaim
Even-Zohar previously recommended
the Indian government discuss a threeor
even four-month moratorium on
diamond imports.
He posited that implementing such a
measure would rebalance supplies,
clear the glut of material in the
midstream, and avoid a price collapse
similar to the current oil crisis.
Indeed, Navadiya recently confirmed,
“The GJEPC’s move to call for a
voluntary ban on rough imports for
a couple of months has helped clear
the diamond pipeline, which, in turn,
has generated some liquidity for
manufacturers.”
Colin Shah, chairman GJEPC, added,
“As there are orders coming from the
US, Hong Kong and parts of Europe
for certain types of polished goods, the
sector is on the path of recovery. The
upcoming holiday season in the western
100%
deferrals offered
to De Beers
sightholders at
mid-year Sights
Source: De Beers
56%
De Beers revenue
decline H1 of
2020 compared
with 2019
Source: De Beers
$179.4m
Alrosa rough
diamond sales
increase, July
2020–August 2020
Source: Alrosa
28–31m
Alrosa revised
2020 diamond
production target
Source: Alrosa
countries, would further boost the demand for
gems and jewellery.”
“The situation at the start and at the
end of our trading session in March
was completely different – that is
why we had to adjust and offer
more flexible sales terms”
SERGEY IVANOV
Alrosa
As of 11 September, approximately 5,000
diamond manufacturing firms had reportedly
returned to operation following lockdown,
at 70 per cent of capacity to accommodate
social-distancing guidelines.
A rough matter for mining industry
With diamond manufacturers unable –
or unwilling – to build inventory due to
suppressed retail demand in the first half
of the year, mining companies were forced
to offer unprecedented flexibility to sight
holders.
These terms have included 60-100 per
cent deferments, lifting mandatory buying
requirements, and buying back up to 30 per
cent of inventory.
Sergey Ivanov, CEO of Russian mining
conglomerate Alrosa – the largest diamond
producer by volume – noted how quickly the
situation changed.
82 | October 2020

CORONAVIRUS ROUGHS UP INDUSTRY | Diamond Industry Report
Above: De Beers Rough Diamond Sales, Cycle 1 2019 to Cycle 2 2020.
“In this turbulent environment, the
situation at the start and at the end of our
trading session in March was completely
different. That is why we had to adjust and
offer more flexible sales terms on the go,”
he said.
“The uncertainty in February was followed
by severe restrictions and even the
suspension of trading because of border
closures and quarantine measures across
the world. Needless to say that this has had
an extremely adverse effect all along the
diamond pipeline,” he added.
In April, Alrosa’s rough diamond sales
fell 96 per cent compared to March and
remained subdued throughout May, June,
and July. However, August saw sales figures
almost entirely recover to pre-pandemic
levels, increasing from $US22.7 million in
July to $US202.1 million.
Meanwhile, De Beers’ rough diamond sales
revenue declined by by $US1.3 billion –
56 per cent – compared with 2019.
The average realised price per carat
declined by 21 per cent, compared with an
8 per cent decline in the overall average
rough diamond price index.
Indeed, De Beers has recently reduced
prices by 5–10 per cent for rough below
1 carat.
However, like Alrosa, its sales results for
the period of 19 August–10 September
appeared promising; it recorded a
provisional result of $US320 million,
compared with $US287 million during the
same period in 2019.
Bruce Cleaver, CEO De Beers Group, said:
“Diamond markets showed some continued
improvement throughout August and
into September as COVID-19 restrictions
continued to ease in various locations, and
manufacturers focused on meeting retail
demand for polished diamonds.
“Overall industry sentiment has become
more positive as jewellers in the key US
and Chinese consumer markets gained
confidence ahead of the important yearend
holiday season, supported by strong
bridal diamond jewellery demand across
markets.”
Notably, the volume of diamonds entering
the pipeline also declined due to mandated
closures as a result of the pandemic.
De Beers’ overall rough diamond production
decreased by 27 per cent in the six months
to 30 June; it has reduced its 2020 forecast
by 20 per cent, to 25–27 million carats, while
Alrosa indicated in May that it would reduce
its output by up to 17 per cent, to 28–31
million carats.
Concluding perspective
Beyond coronavirus lockdowns, the
diamond industry must maintain prices by
managing ongoing supply and
demand shocks.
Even-Zohar pointed to the necessity of
diamond mining companies to support
the midstream by complying with import
moratoriums, should they be put in place,
and even offering credit in order to “share
the financial burden of their customers”.
“Producers need the Indian cutters, and
IN SUMMARY
Key Points
Optimism
following
retail
decline
Some signs of
improvement
in the critical
US and China
markets
Clearing
out the
midstream
Inventories
clearing due to
flexible terms
from miners
Mining
companies
in recovery
Robust sales in
August despite
lower prices
Demand and
supply may
rebalance
Reduction in
supply coupled
with holiday
demand augur
well for price
stability
there is no alternative to India. Over the years
the Indian industry has produced enormous
wealth for them… Now the shoe is on the other
foot,” he says.
“Once the diamond supply chain
begins to reopen... trading volume
will gradually begin to normalise
and prices will likely find a more
sustainable and reliable level”
PAUL ZIMNISKY
Diamond industry analyst
Meanwhile, diamond industry analyst Paul
Zimnisky noted in April, “Once the diamond
supply chain begins to reopen, which will
require the opening of borders, retail outlets
and manufacturing and trading hubs globally,
trading volume will gradually begin to normalise
and prices will likely find a more sustainable
and reliable level.”
At the time of publication, it appeared his
prediction was coming to fruition. The Zimnisky
Global Rough Diamond Price Index appears
to have plateaued over the past six months,
following a precipitous drop between January
and March.
Further down the pipeline, the RapNet Diamond
Index has shown continual improvement over
the past three months, across virtually all
sizes of polished diamonds from 0.30-carat
to 3-carat.
This improvement has indeed been attributed to
a rebalancing of supply and demand: “polished
supply gaps” and “improving holiday orders”.
Thus it appears that, while presenting
significant challenges in the short term, the
coronavirus pandemic may yet solve the
persistent problem of the unbalanced diamond
supply chain and at last deliver the price
stability that is crucial to all in the pipeline.
84 | October 2020

We Are Here For You

BUSINESS
Retail Strategy
BUILDING VALUE THROUGH
BRANDING
Target Innovation Strategy Marketing Story Advertising Awareness Quality Loyalty
Brand aid: how to build brand equity
for your business
The way your business is perceived by potential customers can be the difference between making a sale or losing it to
a competitor – and the key to controlling that perception is branding, advise RICH KIZER and GEORGANNE BENDER.
Branding is a buzzword that’s been around
for a long time, and with good reason;
your brand and its perception in your
community are critical to your store’s
success. But along with that branding
buzz, there is also a lot of confusion.
The good news is that branding isn’t hard to
implement – it is easy once you understand
what it is, and what it is not.
Defining your brand
You may have spent hours designing the
perfect logo for your store – or paid for
someone else to do so – but that’s not your
brand. You know the ‘swoosh’ that appears
in every Nike ad? It’s a logo, not a brand.
Your brand is more than your website, your
blog, or your presence on social media. It’s
more than your ads, brochures, business
cards, bags and everything else you use to
put your store name out there. Your brand is
even more than the name you chose to hang
over your front door.
Each of these things are critically important
to your brand identity, but they are the
components used to build your brand, not
the brand itself.
A brand is the emotional connection – the
physical reaction – customers feel when
they hear your store name, see your logo,
visit your website or walk in your front door.
It’s the space you occupy in the mind of the
customer, and the experience they can get
only from you.
The best way to describe a brand was
coined by Adrienne Weiss, CEO of branding
and marketing business Adrienne Weiss
Corp: “A brand is a country with its own
unique language, customs and traditions.”
Using this definition, here is a checklist of
things to do to help you build your brand.
Step 1: Write your store’s story
It’s hard to write about the things that got
you to where you are today, but you have to
do so. Start with why you decided to open a
store, then write about what makes you and
your store unique; talk about how you make
a difference in your customers’ lives and in
your community.
Make it a fun adventure people will want
to read. If you get stuck, ask your family and
staff – and maybe even customers – for help.
A brand is
the emotional
connection –
the physical
reaction –
customers
feel when they
hear your store
name, see your
logo, visit your
website or
walk in your
front door
When your story is finished, spread the
word about who you are through your instore
signage, on your website, your social
media channels, marketing, advertising –
anywhere and everywhere you can.
Step 2: Create an ‘elevator pitch’
We used to kick ourselves after someone
asked us what we do and we’d reply, “We’re
professional speakers.”
Afterwards, we’d think of all the ‘cool’
things we should have said. Now we say,
“We are consumer anthropologists. We
study consumers in their natural habitats
and share what we find in our keynote and
seminar presentations.”
If you’ve ever answered, “I own a jewellery
store” when asked what you do, then you
know that feeling of missed opportunity.
Write a 60-second condensed version of
your store’s story – known as an ‘elevator
pitch’ – and you’ll never find yourself in that
position again.
Step 3: Create a unique look
Branding requires discipline and
consistency. Every single thing – from the
smallest details like bags to fonts, need to
86 | October 2020

Retail Strategy
be properly tell your brand story.
Weiss says the brand itself should act like a
water filter.
With that in mind, think about who you are
and what you want representing your store.
If the item, or service, you are considering
is in alignment with your store’s story and
would easily pass through your brand filter,
then go ahead and use it.
Here’s an example: Bunnings is widely
known for using the colour dark green, so
if a supplier offered employee aprons in
yellow, even at a great price, would they fit
through Bunnings’ brand filter? No.
Tiffany & Co. has trademarked its unique
shade of robin’s egg blue, and McDonald’s
has the golden arches.
Any other colour in each of these examples
would be unacceptable because they would
never make it through the company’s filter.
Branding tips
Expanding on Step 3, here are some of the
things you need to ‘filter’ to ensure they
properly represent your brand:
• Select a signature colour, or colours, and
use everywhere – We once met a retailer
whose signature colour was red. Her store
was well known for its bright red shopping
bags; people saved them and carried them
around town, and they became walking
billboards for her store.
One Christmas, she decided it would be
fun to try silver shopping bags. It was a big
mistake as no-one in her town recognised
that the bags came from her store.
As a result, she had to rebuild that part of
her brand identity.
• Choose your fonts carefully – It’s a good
idea to use both upper- and lower-case
letters in your branding as all-caps can be
tough on older eyes.
Additionally, make sure that your font is
easy to read – some that look great in a
14-point become hard to read when blown
up on signs.
that’s not who you are.
You can always add your signature colour
to good quality plain bags with inexpensive
custom stickers, and the same thing goes
for boxes.
Get creative with your gift cards too; we
have encountered a lingerie retailer who
nestled gift cards in scented tissue paper
inside a shiny box.
• Bring your brand to the sales floor – Your
sales floor is your largest brand-building
element. There isn’t a single part of your
store (restrooms included) that’s not part of
your brand identity.
Take an objective look around: Have you
included your signature colours? Are you
using quality fixtures? Is the merchandise
well-signed and do the signs incorporate
your brand’s font? Are sales staff easily
identifiable?
• Create one-of-a-kind in-store
experiences – Customers will stay close
to your store if you give them a reason.
Classes, in-store events and loyalty clubs
are all good reasons.
Build your brand and your visibility by
hosting one major and two to three minor
in-store events each month – note that
even in the midst of a pandemic, you can
do virtual events or a combination of virtual
and physical.
A major event attracts new customers to
your store; minor events, like classes and
demonstrations, attract smaller numbers
of shoppers. Both are important.
• Build a strong brand presence online –
In the past, shoppers let their fingers do the
walking through the phone book; today they
visit your website.
These days a website is not an option.
You need a real website that is easy to
remember, as in www.thenameofyour
store.com.
Websites have become the equivalent of
business cards, and your homepage is also
your ‘greeter’.
BRANDING
BASICS
Define
yourself
Articulate the
story, values, and
‘personality’ of
your business
Create
a brand
language
Use visual
and verbal
cues –such as
slogans, colours,
and fonts – to
reinforce your
brand
Be consistent
and cohesive
Monitor your
brand frequently
and allow
enough time
for it to be
established
The photos and information you post on
your website, social media and emails also
represent your brand. Think about what you
post before you post it. Check your spelling
and test links to make sure they work.
Even your email address says a lot about
who you are and is useful in building
your brand. Create an email address that
comes from your own domain name, as in
yourname@thenameofyourstore.com.
• Become a shameless self-promoter –
Other than word-of-mouth, the cheapest
way to build your brand is through PR –
public relations. That’s why you should send
out a press release for everything of interest
that you do.
The media wants and needs your input. Did
you know that the majority of stories that
appear in your local media came from a
one-page press release sent by someone
like you who had a story to tell? You can
build brand equity simply by tapping “send”
in an email.
If you’re too busy to handle the public
relations by yourself, then promote a staff to
the position of ‘PR manager’.
They will act as the media contact person,
who will collect the names of local editors
and reporters, write and distribute press
releases, be your store ambassador at
local functions and Chamber of Commerce
events, and more.
• Be patient – You will likely to get sick
and tired of your brand before it begins to
automatically register with your customers
or potential customers.
The ‘marketing rule of seven’ says that a
person must see or hear your message at
least seven times before they take action or
even remember you.
So, resist the urge to change your logo,
colours or tagline – anything that is
considered part of your brand identity –
and give it time to stick.
• Customise bags, boxes and gift cards
– You run a unique and upscale store, and
while it might be easy to purchase plastic
bags similar to those used in supermarkets,
Make sure that it’s consistent with your
brand image, and a good example of
what shoppers can expect when they visit
your store.
RICH KIZER and GEORGANNE BENDER
are retail strategists, authors, and
consultants. Visit: kizerandbender.com
87 | October 2020

BUSINESS
Selling
Stop talking to PWOTs and use your
sales time effectively
The art of maximising sales centres on weeding out those customers who are a PWOTs – a ‘potential waste of time’
– and instead identifying the shoppers who actually want to buy from you, writes BRIAN JEFFREY.
If you’re going to sell anything, you must
deal with real customers, and your
challenge as a salesperson is to separate
the real from the unreal.
While it’s not difficult, too few salespeople
do it – and end up wasting their time trying
to sell to people who have no intention
of buying.
Why do so many salespeople spend time
on customers who are PWOTs – ‘potential
waste of time’? In some cases, they haven’t
learnt to recognise one. In other cases,
they don’t have anyone else to talk to and
would rather spend time with a PWOT
than with no-one.
Another problem with spending time with
PWOTs is the opportunity cost: you’re not
spending your time with someone who
might actually buy something from you.
And if you think a PWOT is bad, try dealing
with his close cousin, the DWOT – a ‘definite
waste of time’!
The attraction of the PWOT
A lot of sales staff are heavy-duty ‘people
persons’; they really enjoy talking and
socialising with others. Often, this means
their focus is on developing the relationship
and less on developing business. As a result,
they spend too much time with other nice
people persons who just want to have a chat.
Salespeople who have the ‘amiable’
personality type need to be particularly
sensitive to this. People with an amiable
personality are known as ‘shopkeepers’ and
their strength is building relationships.
Unfortunately, sometimes they are so
keen on being friendly that they forego
the unpleasantness of actually having to
ask someone to buy something for fear of
upsetting the relationship.
Identifying time wasters
As mentioned previously, some sales staff
fall into the PWOT trap because they simply
don’t know how to recognise them.
Here are some clues to help you detect
real customers from the unreal ones – aka
PWOTs and DWOTs:
Failing to keep appointments and ignoring calls are sure signs of a PWOT.
Disguising their lack of power – PWOTs and
DWOTs often try to create the impression
that they wield more purchasing influence
than they really do, and they will often evade
questions regarding money or funding.
Resenting you for asking questions – your
questions put them in danger of exposure
as time wasters, so they give vague or
dissatisfying answers to your specific
enquiries regarding their needs and
intentions. They won’t make it easy for
you to sell to them.
Showing little respect for your time and
effort – these people will often fail to keep
appointments, hide behind their voicemail,
and don’t return your calls, emails, or texts.
Trying to get you to alter your standard
operating procedures – PWOTs and DWOTs
will try to muddy the waters to delay the
ultimate non-decision; they will quibble on
price, product, terms, and more.
PWOTs and DWOTs are not all bad or
thoughtless people; often, they are fine
individuals who simply can’t say no to a
salesperson because they don’t want to
hurt his or her feelings. On the other hand,
sometimes they are ego-driven individuals
who live in a make-believe world.
Focus on real customers
The opposite of PWOTs and DWOTs are
real customers or potential customers.
PWOTs often
try to create the
impression that
they wield more
purchasing
influence than
they really do,
and they will
often evade
questions
regarding
money
These people are where you and your sales
staff should focus your efforts in order to
maximise results.
Here are some key characteristics:
Questions are welcome – these customers
or shoppers know you need to get certain
information if you are to help them make an
informed buying decision.
Realistic about money – simply put, these
people are not trying to buy two dollars’ worth
of business for a dollar, and they understand
the concept of cost versus value. For those
bigger purchases, they have a budget in
mind, and know the difference between
wished-for money and money in the bank.
Clear decision-making process – these
customers know what they want to buy,
and they know that the sooner they make a
decision, the sooner they will get that item
or service.
Demonstrate value for their time and
yours – interactions with real customers are
respectful and professional, and they will
hesitate to make an appointment if they feel
it would be a mutual waste of time.
Cut your losses
Real salespeople want to spend their time
with real customers, so make sure you find
out who’s who and start qualifying your way
to even greater sales success.
Learn to differentiate the real from the
unreal and focus your efforts where it
counts. You’ll find your sales going up and
your frustration going down.
If you suspect you’re dealing with a PWOT,
extradite yourself from the situation as
quickly and courteously as possible and
move along. You may end up keeping them
as friends or acquaintances – just don’t let
them eat up your valuable selling time!
Replace your PWOTs with real buyers and
put more money in your pocket.
BRIAN JEFFREY has more than 40
years’ experience in sales management,
training and business consulting.
Visit: quintarra.com
88 | October 2020

BUSINESS
Management
Do you already have a sales prodigy
working in your business?
While natural skill can play a part in anyone’s success, the element that makes the biggest difference
comes down to another factor entirely – the willingness to learn, explains DAVID BROWN.
We’ve all met those people who are
blessed with skills that the rest of us
don’t have.
Whether it be in business, playing the
piano, memorising information, or even
excelling at golf, these people exhibit their
skills with effortless ease while the rest of
us flap around like fish on a jetty!
We tend to credit them with exceptional
natural skill – and for many of them skill
is an important factor, but not always as
much as you would initially think.
In his book Outliers, author Malcolm
Gladwell introduces us to the ‘10,000
hours rule’ – the transformative impact
of spending 10,000 hours of concentrated
learning on a specialised task.
Gladwell credits much of the success
of many famous people to the time they
spent developing their craft as much as
their natural talent.
With 10,000 hours of training, he
maintains, most people can achieve a
world-class level in a particular field,
simply by putting in the time to hone
their skills.
This is backed up by Matthew Syed in
his book Bounce.
Syed focused on the high percentage
of young men and women, including
himself, who lived on the same street
and achieved national level success in
table tennis.
The odds that one street in an English
city could possibly have such a high
statistical probability of generating so
many champions, in a relatively lowprofile
sport, is low.
Clearly the environment, which included
a table tennis facility which was open 24
hours a day, along with a local coach who
excelled at teaching the sport, played a
significant role.
Nature and nurture
Hungarian behavioural psychologist
Laszlo Polgar studied the impact of
starting early and subjecting a child to
Practice –and patience – makes perfect when it comes to business.
intensive training in a particular field.
He based his conclusions on the family
history of 400 famous child prodigies.
Eventually, Polgar decided to test his
theories on his own family.
He deliberately chose a partner – his
Russian-born wife – who was willing to
go along with his plan to turn their future
children into prodigies.
They selected chess as their avenue
for learning and, upon the birth of each
of their three daughters, subjected them
to intensive training.
All three went on to become world-class
players, despite the fact that women are
noticeably underrepresented in the elite
levels of the game.
So, what does all of this mean for your
retail business?
You may not share the intensity of Laszlo,
but evidence tends to show that you can
teach yourself, and your staff, whatever
skills you wish.
The key to success is whether or not you
are willing to commit the time and energy
required to get results. Now, this does
not mean you need to start hiring five-
The staff
member who
seems unable to
sell diamonds
could become
your best
diamond seller
if you are
willing to invest
the time in their
training and
support
year-olds to get them up to speed by a
reasonable age!
Nor does it mean you have to spend
10,000 hours to master a new skill –
which equates to six hours of practice
a day for 4.5 years – or expect that from
your staff.
The central point of both Gladwell and
Syed’s books is that expertise and skill
can be learned rather than innate –
anyone can master a skill with sufficient
desire and willingness.
The staff member who seems unable to
sell diamonds could become your best
diamond seller if you are willing to invest
the time in their training and support.
Foster your skills
At the same time, business success itself
says less about talent and more about your
ability to embrace the topic and spend the
time understanding the skills you need.
Understanding numbers is a case in
point. Many business owners feel that
handling their company’s financial affairs
is something that only a select few can do,
but this is not the case. No-one is born an
accountant!
Getting your head around your finances
and overall business performance is
about taking the time to understand the
different factors involved.
While some have an innate ability to
grasp numbers, for the vast majority it is
something that is learned – and the more
you expose yourself to the necessary
lessons, the quicker you will comprehend
the data required.
So, in order to be successful, take the
time to develop your skills – and those
of your staff – in the areas of expertise
that will pay the highest dividends for
your business.
DAVID BROWN is is co-founder
and business mentor with Retail
Edge Consultants. Visit:
retailedgeconsultants.com.
89 | October 2020

BUSINESS
Marketing & PR
Adapting marketing strategies to the changing
patterns of consumer behaviour
During and post-COVID, consumers have been exhibiting unfamiliar buying patterns. For retailers, it’s a case of
same, same, but different – and the approach to marketing should reflect that, says BARRY URQUHART.
They’re back: in every state and territory
in Australia, bar Victoria, consumer foot
traffic in key shopping centres and prime
retail precincts is reportedly at around 86
per cent of the levels recorded in March,
immediately prior to the declaration of the
COVID-19.
And in nearly every way, the consumers
are the same as before; the faces
are familiar, addresses have not
changed. Neither have the credit
and debit card details.
Loyalty cards are still valid and
accumulating points – however,
there appears to be little consumer
commitment to the businesses
issuing them.
Advertising messages are eliciting fewer,
and slower responses, while promotional
activities are generating less interest,
fewer responses and attendances.
Customers are, quite simply, exhibiting
differing buying patterns. So, what is a
retailer to do in this new ‘COVID normal’?
Scouting the landscape
First, let’s examine those marketing
strategies that have been ineffective in
the wake of COVID-19.
Big price-discounting campaigns are,
seemingly, not increasing revenues as
the price savings are being accepted –
if not expected.
However, volumes do not reflect the
enhanced value offers.
Consumer loyalty and repeat business
with individual stores and brands
appears to be tenuous at best.
Relationships are founded on each
transaction, alongside competitive
pricing, payment options, and incentive
post-purchase services, yet those
relationships are now fractious,
hard-earned, and short-term.
At the same time, online sales have
not proven to be the saviour for all
stores, particularly those with a bricksand-mortar
presence alongside an
Post-COVID, consumer psychology has seen a profound shift.
e-commerce offering. Indeed, during
June, total national online sales declined
by some 2 per cent for the first in more
than seven years.
Analysis shows this was an expression
and qualification of consumer
dissatisfaction with poor, slow and
variable delivery standards.
As it turns out, delivering the e-commerce
promise – which Australian consumers
were already more reluctant than most to
embrace – is both difficult and expensive.
Closing the gap
Many bold statements and declarations
by corporate management about their
‘customer-focus’, ‘customer-driven
service’ and ‘customer-centricity’ have
been found to be shallow over the course
of the past few months.
The recognition of customers has
frequently been limited to demographic
profiles and historic buying patterns –
such are the characteristics and typical
deficiencies of algorithms and artificial
intelligence.
Advertising
messages are
eliciting fewer,
and slower
responses, while
promotional
activities are
generating less
interest, fewer
responses and
attendances
Intuitive reasoning, understanding and
responses are sparse. The nuances
inherent in the spoken word and bodylanguage
are seldom recognised,
comprehended and appreciated.
In the offline channel, the allure of
personal contact with in-store sales
and service providers has remained for
consumers, yet sadly the expectations
and promises have often fallen short
because of rationalised staffing levels.
Put simply, the large capital investments
in social, digital and online capacities
have not been matched by complementary
and contributing capabilities of
experienced, qualified and enthusiastic
team-members.
From a marketing perspective, it appears
too many eggs have been placed in the
wrong baskets – especially now that
stores, for the most part, have reopened
their doors.
The physical presence of consumers has
been, and continues to be, conspicuous.
However, their psychological perceptions,
aspirations, expectations and purchase
criteria have changed, often substantially.
Each is a consequence of lockdowns,
social isolation and inhibited mobility. Yet
looks can be, and often are, deceiving.
Converting sales and fulfilling needs
requires closer analysis, understanding
of the ‘new’ consumers, and refinements
to business practices and promises.
When strategising for the next period,
it is advisable to start wholly from
scratch, rather than assuming the same
marketing incentives will be as effective
as they were before.
At the same time, it is critical for
businesses to learn from the mistakes
of others in adapting to COVID-19, and
determine where their energies are
best spent in attracting and retaining
customers.
BARRY URQUHART is managing
director of Marketing Focus. He has
been a consultant to the retail industry
around the world since 1980. Visit:
marketingfocus.net.au
90 | October 2020

BUSINESS
Logged On
How to create an Instagram ad that increases sales
Instagram advertising is an important and efficient tool in building your business, writes ALLISON HALL –
but it is essential to have the correct strategy in place to make the most of this social media platform.
Small business owners – particularly
independent retailers – are told time and
time again that they ‘should’ be advertising
on Instagram. Yet it can be challenging
to harness the true power of this social
media platform.
Instagram advertising is like a magnetic field
that attracts customers to your business.
According to Instagram’s figures, it has
400 million active daily users who create
80 million posts each day. This means your
advertising has the ability to reach a very
large number of people.
At the same time, you can also create very
targeted ads to maximise your chances for
converting sales.
Paying for Instagram ads need not be a
large financial commitment, and the types of
ads you create can be tailored to your budget
– whether it is $10 per day or $10,000.
Most importantly, Instagram ads are
extremely effective. Some digital marketing
experts say that Instagram ads are twice as
cost-effective as Facebook ads due to the
higher number of clicks they receive.
Developing a strategy
Once you decide to create an Instagram ad,
the first step is to determine your objective.
Some of the most common goals include
driving traffic to your website, increasing
sales, gaining more social media followers,
and increasing engagement to build brand
recognition.
Don’t try to ask a viewer to both follow you
(increase your follower count) and make a
purchase (increase sales). The total viewing
time of your ad will be short, so the goal
needs to be succinct and attainable.
The next step is to decide who your audience
is. Instagram’s targeting options can be
broken down into three categories:
• Core Audiences – The app’s default option
• Custom Audiences – Numerous data
sources are used to pull a group of users who
have previously interacted with your brand
• Lookalike Audiences – Data is analysed
Instagram is more than a popularity contest – it’s a powerful sales tool.
to create a group of users who have similar
characteristics to your existing customers
or followers
Look at your Instagram page’s Insight tab in
order to find out the demographics of your
pre-existing followers.
Alternatively, you can make decisions based
on the type of person who is going to be
interested in your specific product or service.
Creating the content
Once you have your objective and audience
in mind, the next step is to determine which
type of Instagram ad would be the most
effective to achieve your goal.
You can choose from single photo ads,
carousel ads – that is, multiple photos that
users ‘swipe’ through – video ads, Instagram
Stories ads, and ads on the ‘Explore’ page.
There are different benefits to each type.
For example, static photo ads are visually
compelling, and users can ‘Save’ and return
to the post.
Video ads can be up to one-minute long
which allows you to tell the story of your
business, present a problem and solve it,
or go in-depth about how a product works.
When you create an Instagram video
ad, optimise it for mobile viewing.
Natasha Courtenay-Smith, CEO of digital
One of the best
approaches
to avoid being
skipped over
is to make
your Instagram
ad look like a
post created
by a friend
marketing firm Bolt Digital, says this means
incorporating movement in the first three
seconds. The audio of the Instagram video
will also be muted by default, so it is crucial
to add text or captions to let viewers know
what is going on.
Meanwhile, carousel ads allow up to 10
images or videos and give you the ability
highlight multiple products, or ‘deep dive’
into the details of a single product with
multiple angles and styling options.
The most important thing is to grab the
attention of the consumer immediately.
There is no time to waste – studies show an
ad needs to compel a viewer to stop within
milliseconds.
Holding attention
One of the best approaches to avoid being
skipped over is to make your Instagram
ad look like a post created by a friend. In other
words, make the ad not appear to be an ad.
We see this increasingly with cosmetic and
skincare companies, such Glossier.
These advertisements are effective because
they blend into an Instagram feed and
therefore are not immediately ignored.
They also feel authentic, approachable and
familiar – and can make it appear as if the
products are recommended by a user’s peers,
instead of being promoted by a business.
Finally, decide on your call-to-action button.
For example, do you want the viewer to
immediately purchase your product or call
you to make an appointment? Choose the
option which caters to your goal, and then
create visuals which compel them to click.
By following this guide to brainstorm your
Instagram advertising strategy, you will put
yourself on track for a focused, successful
campaign that persuades potential shoppers
to act.
ALLISON HALL is a marketing and
public relations specialist at Three Girls
Media, an award-winning agency based
in Seattle. Visit: threegirlsmedia.com
91 | October 2020

My Bench
Ryan Haddrell
Clayfield Jewellers, Brisbane QLD
Age 42 • Years in Trade 25 • Training Four-year apprenticeship, and 21 years of learning every day. • First job Hungry Jacks kitchen hand! My first job in the
jewellery trade was as an apprentice training under Mal Gray at Richardson’s Jewellers, then Doug Morris Jewellers shortly after. • Other Qualifications Gem setter,
CAD designer, laser operator, and karate black belt
SIGNATURE PIECE
SIMPLE SOPHISTICATION RING
PRIVATE COMMISSION
This piece is a favourite of mine. It’s a platinum solitaire
engagement ring set with a 1-carat oval-cut diamond and
20 smaller diamonds in the band. I really enjoy it because the
setting gives the ring a great look – maximum sparkle with
minimal metal. It features a flow-up style band, micro-set
shoulders and arrowhead claws. I used our laser welder for
soldering to fuse the metal with no pitting or dragging from
the joints. To create the micro-set shoulders, I used a twist
drill, fissure burr, ball burr, hart burr and saw frame. It lives
up to the name ‘Simple Sophistication’.
4FAVOURITE GEMSTONE Parti sapphire because
I love the beautiful combination of colours –
greens, yellows, blues, etcetera, mixing together
to create very unique looks.
4FAVOURITE METAL 18-carat yellow gold.
It’s very easy and ‘friendly’ to use; it’s great for
drawing wire and forging. Simple to solder. I also
love the yellow colour of 18-carat gold.
4FAVOURITE TOOL Laser welder. It gives
me abilities that I would have loved to have
had in the first half of my career. I handle
heat-sensitive stone with much more ease than
in the days of soldering in a sand pit.
I can pinpoint solder 0.4mm spots in very awkward
positions in seconds. I also do not use binding wire
any more and can tack things together very quickly
with no tongs or tweezers.
4BEST NEW TOOL DISCOVERY X-ray scanner.
The days of acid testing are over and it’s awesome
to get a fast and accurate breakdown of exactly
what is in the metal I am working with.
4BEST PART OF THE JOB Being creative and
getting to help people in our own way, such as
helping a customer create their dream jewellery
piece from an idea or old gemstones – that could
mean the world to them. Or, on a more practical
note, cutting a customer’s ring off to get back
some blood flow!
4WORST PART OF THE JOB Sitting down – a lot.
4BEST TIP FROM A JEWELLER Measure twice,
cut once.
4BEST TIP TO A JEWELLER Plan your work.
Get all the numbers and information on paper
before you start a complex project and never
assume details, where possible.
4BIGGEST HEALTH CONCERN ON THE BENCH
Eyes and lungs. There are lots of hot and sharp
things that can go into your eyes, so wear eye
protection please! For lungs, we must concern
ourselves with mainly polish dust and plating
fumes. It’s essential to wear a good quality mask.
4LOVE JEWELLERY BECAUSE It’s art. The vast
possibilities of what you can create when you try
to master an art form is very fulfilling.
92 | October 2020

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OPINION
Soapbox
The importance of kindness post-COVID
When figuring out a strategy to survive the new reality of retail, the jewellery industry’s greatest
strength is in our kindness and loyalty to each other, writes HELEN THOMPSON-CARTER.
You are probably, like me and everyone
else in the world, wondering when
COVID-19 will be stopped in its tracks.
Unfortunately, it is not looking likely
any time soon. The feeling is more that
we now need to embrace life within a
global pandemic, and everything that
comes with it.
New Zealand went ‘hard and fast’ back
in March. Many businesses – outside of
those deemed essential services – saw
limitations imposed on trade, both instore
and online.
Our approach was one of the strictest in
the world, and the impact on businesses
was extreme. Yet for some retailers, April
and May were as good as Christmas in
terms of sales and revenue.
Then we emerged from this six-week
lockdown straight into a euphoric frenzy
of retail spending.
It was great for our jewellery industry –
the repairs, remakes, and watch battery
replacement jobs piled up, and the
consumers came out to treat themselves
to something new and beautiful.
However, the emergence of customers
with money in their pocket was shortlived.
Now it has all come home to roost
– financially, for many people things are
tough and tight. Economically, things
have slowed down.
But in our jewellery industry, it is not
‘over and out’.
We have a Prime Minister whose favourite
saying during the COVID period has been,
“Be kind.” If I can take this slogan and
apply it to our industry right here and
now, it is indeed a time to be kind.
It is a time to shift the thinking of, ‘What
can you do for me?’ to ‘What can we
do together?’
Retailers need a supply chain and the
supply chain needs the retailers.
It has become difficult to conduct
international business, particularly with
countries such as India, which is an
integral part of the jewellery supply chain.
So, more than ever, we need to support
local and foster those long-term supplier
relationships – and local includes our
trans-Tasman friends.
I, like most suppliers, understand that
retailers need to be cautious, stock needs
to be turned, and risks mitigated, while
sitting on a sizeable emergency fund for
those ‘just in case’ times which seem to
be occurring more and more frequently.
Yet some retailers have taken this to
the extreme, thinking in the short-term
without planning for the long.
The downside is that this has the potential
to be catastrophic to the industry supply
chain. Adopting a ‘no buy’ attitude could
very well kill us, and retailers too.
Fresh stock is important. Retailers need
to keep their loyal customers happy,
as well as tempt new customers, by
re-ordering the best-selling lines and
ordering new and exciting products.
Yet if their regular suppliers disappear,
retailers will have to search for stock from
unknown sources. In doing so, they risk
purchasing lower-quality products and
sacrificing the deals they currently enjoy
as a result of long-term relationships.
To quell some of the fear jewellers are
To succeed
in this new
environment
also requires us
to strengthen
our support for
each other –
and have faith
in what we
have, and do,
every day
feeling, it’s important to remember the
things jewellery represents, celebrates
and signifies won’t disappear because
of COVID-19 or a recession.
Birthdays, weddings, engagements,
anniversaries, and other special
occasions will still happen every year,
and we are lucky to be in an industry
where customers turn to us to help
them mark these wonderful events!
Yet there is no denying that we are going
to have to work harder for what we get,
developing a deeper understanding of the
ways in which consumers are searching,
shopping, and spending in this post-
COVID environment.
We will need to adjust our offering
accordingly to suit their needs.
For most in the jewellery industry, that
means being more digital, more engaging
and more present, being a better
storyteller, and being far more proactive
in selling the virtues of fine jewellery.
To succeed in this new environment also
requires us to strengthen our support for
each other – and have faith in what we
have, and do, every day.
So, let’s be COVID kind. Support local,
support those within the industry who
have supported you, keep that support
close to home, and together let’s make
sure our beautiful industry continues
to shine.
Name: Helen Thompson-Carter
Company: Fabuleux Vous
Position: Founder and director
Location: Auckland, NZ
Years in Industry: 10
94 | October 2020

RETAIL TRADE DAYS COMING IN 2021
to a city near you!
ewellery
• TRADE DAYS •
Gift
Jewellery
• TRADE DAYS •
BRISBANE
SYDNEY
PERTH
ADELAIDE
February 13 – 14, 2021
Brisbane Convention Centre
Southbank
February 20 – 21, 2021
ICC Sydney
Darling Harbour
March 13 – 14, 2021
Perth Convention
& Exhibition Centre
March 20 – 21, 2021
Adelaide
Showground
We are ready to get back to business and recognise the importance
to reconnect quickly and efficiently.
Introducing the Retail Trade Days, giving wholesalers an easy and affordable opportunity to connect
with local retailers, easy access to an event, with a cross section of suppliers in their own state.
The Retail Trade Days will be a marketplace of leading jewellery suppliers, all trading from a trestle table
with a maximum cap of 2 tables. It is designed to ensure that participants focus their offer on samples of
their latest new releases, or dead stock they are looking to clear. With exhibitor packages starting at
only $1,100, don’t miss out on bouncing back with these intimate and local focused events.
Get in touch!
If you have any questions, or want to secure your involvement contact the team at Expertise Events.
Phone: (02) 9452 7575
Email: jewelleryfair@expertiseevents.com.au
Organised by:
Est. 1990

Automatic & Mechanical
Classiquewatches.com
www. Classiquewatches.com
SAMS GROUP
AUSTRALIA
E orders@samsgroup.com.au W samsgroup.com.au P 02 9290 2199