Jeweller - December 2020
• Survival lessons: Essential business tips learned from a year of upheaval • Full state of play: a comprehensive report into the Australian jewellery industry in 2020 • Show stoppers: standout jewellery pieces from local talents
• Survival lessons: Essential business tips learned from a year of upheaval
• Full state of play: a comprehensive report into the Australian jewellery industry in 2020
• Show stoppers: standout jewellery pieces from local talents
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200<br />
100<br />
Chains through the decade | STATE OF THE INDUSTRY<br />
ZOOMING OUT<br />
A HISTORY LESSON:<br />
TWISTS & TURNS<br />
While the New Zealand based James Pascoe Ltd (JPL)<br />
represents the largest retail footprint across Australia –<br />
controlling Prouds, Angus & Coote and Goldmark chains –<br />
that wasn’t always the case.<br />
As previously noted, the 2010 State of the Industry Report<br />
(SOIR) listed JPL with a combined total of 469 stores across<br />
its three chains, falling to 458 this year.<br />
The accompanying chart shows the growth of the three chains<br />
since 2003, but it should be recognised that JPL acquired<br />
Angus & Coote (A&C) and Goldmark in 2007 in a $76 million<br />
deal. The acquisition included three other jewellery chains<br />
which were part of A&C and which no longer operate.<br />
A&C was established in 1895 and was listed on the Australian<br />
Stock Exchange (ASX) in 1952. At the time of the JPL takeover<br />
– which required approval from the Australian Competition<br />
and Consumer Commission (ACCC) – A&C operated the<br />
Edments, Dunklings and Amies chain, as well as Goldmark.<br />
At the time of <strong>Jeweller</strong>’s first chain store research and<br />
analysis in 2003, A&C operated 254 stores (Goldmark 114,<br />
Amies 34, Dunklings 26, Edments 25, A&C 55) and according<br />
to research firm IBISworld, the company had 12 per cent of<br />
the jewellery and watch store business.<br />
The deal was controversial not only because it required<br />
ACCC approval, but also because it was a ‘reverse takeover’<br />
– named for when a smaller company attempts to acquire<br />
a larger company.<br />
JPL announced the takeover move in January 2007 when it<br />
had around 174 Prouds stores in Australia and when the<br />
ASX-listed A&C accounted for around 246 stores.<br />
In addition, Prouds was only the third-largest group at the time<br />
of the reverse takeover; Kleins, a fashion jewellery franchise,<br />
was the second-largest chain/group, with 182 stores.<br />
In another interesting twist, reminiscent of recent history, in<br />
May 2008 Kleins was placed into receivership after collapsing<br />
with $20 million in debt. Two months later the company was<br />
liquidated after administrator James Stewart, of Ferrier<br />
Hodgson, said he was being forced to close the business.<br />
“Despite 46 expressions of interest and eight indicative<br />
offers being received, once parties proceeded to due diligence<br />
it was clear that no-one was confident about returning the<br />
business to profitability, considering the risks and financial<br />
commitment required,” Stewart said.<br />
In November 2008 Prouds went on to re-brand Amies in<br />
Queensland, Dunklings in Victoria and Edments in South<br />
Australia and Western Australia as Angus & Coote stores,<br />
which helps explain the increase from 41 stores in 2007<br />
to 133 in 2010, and finally 120 this year.<br />
And in one final twist, of the 1,164 chain stores across<br />
Australia in <strong>2020</strong>, 52 per cent are owned and ‘controlled’ by<br />
the Kiwis: James Pascoe Ltd and Michael Hill International.<br />
0<br />
CHART 4.1:<br />
300<br />
200<br />
100<br />
0<br />
CHART 4.2:<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
2003 2007 2010 <strong>2020</strong><br />
Pascoes Group Chart<br />
Angus & Coote Goldmark Prouds<br />
2003 2007 2010 <strong>2020</strong><br />
Angus & Coote Goldmark Prouds<br />
ABOVE JAMES PASCOE<br />
LIMITED STORES BY BRAND<br />
The above chart shows the growth of the<br />
three James Pascoe Ltd (JPL) chains<br />
stores over the past 17 years. It should be<br />
noted that Angus & Coote and Goldmark<br />
were not part of JPL in 2003; they were<br />
acquired in 2007 in a reverse takeover<br />
deal of Angus & Coote.<br />
‘03 ‘07 ‘10 ‘20<br />
Total Stores<br />
LEFT JPL TOTAL STORES<br />
The combined total of stores for<br />
the three James Pascoe Ltd chains<br />
since 2003.<br />
2003 2007 2010<br />
CHART 4.3: <strong>2020</strong> Australian chains with New Zealand ownership (By Brand)<br />
10%<br />
ANGUS & COOTE<br />
Chain by Brand<br />
Stores<br />
Angus & Coote (JPL) 120<br />
Goldmark (JPL) 74<br />
Prouds (JPL) 264<br />
Michael Hill (MHI) 154<br />
Other 552<br />
TOTAL 1164<br />
OTHER<br />
48%<br />
552 STORES<br />
NZ-OWNED in % 52%<br />
Australian chains with New Zealand ownership (By Group)<br />
MICHAEL HILL<br />
13%<br />
154 STORES<br />
Chain by Group<br />
Stores<br />
James Pascoe (JPL) 458<br />
Michael Hill (MHI) 154<br />
Other 552<br />
TOTAL 1164<br />
NZ-OWNED in % 52%<br />
OTHER<br />
48%<br />
552 STORES<br />
MHI<br />
13%<br />
154 STORES<br />
PROUDS<br />
23%<br />
264 STORES<br />
JPL<br />
39%<br />
458 STORES<br />
120 STORES<br />
GOLDMARK<br />
6%<br />
74 STORES<br />
ABOVE The pie charts show the number of New Zealand owned/controlled jewellery chains<br />
trading in Australia by brand name and by group owned. They account for 52 per cent of stores.<br />
<strong>December</strong> <strong>2020</strong> | 41