Jeweller - December 2020

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withdrawn from the Australian market, such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