Jeweller - December 2020

STATE OF THE INDUSTRY | Chains through the decade
CHART 5:
Wallace Bishop
Bevilles
Saleras
150
40
Stores
100
50
Stores
30
20
10
Stores
0
2003 2007 2010 2020
0
2003 2007 2010 2020
2007 2010 2020
The above charts show the store count changes for Wallace Bishop, Bevilles and Salera’s based on Jeweller’s previous reports. Since July 2020, Salera’s closed two stores.
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to be made during an extensive sales period.
Unfortunately for The Jewellery Group,
it was the second time that Zamels had
been targeted by the Australian Competition
and Consumer Commission (ACCC) over
two-price – also known as ‘was-now’ –
advertising.
In 2006 the ACCC launched legal
proceedings against the then-family owned
Zamels in regard to its 2005 Christmas
catalogue. The Federal Court found
that Zamels had not sold the items at a
strikethrough (was) price for a reasonable
period prior to the sale.
This ACCC double-whammy might also have
affected the Zamels business model which
was based around ‘was-now’ advertising;
its retail marketing and pricing strategies
were changed and which, ultimately, could
have impacted trading levels.
Mid-sized chains up and down
The mid-sized retail chains present an
interesting scenario, with developments
that might have seemed unexpected a
decade ago.
In 2010, Wallace Bishop was Australia’s
sixth-largest fine jewellery brand, with
57 stores. It also operated seven Hardy
Brothers stores after acquiring the iconic
brand in 1997.
With a combined total of 64 group stores,
Wallace Bishop was the fourth largest group
after JPL (469 stores), Michael Hill (144) and
The Jewellery Group (127).
The high-profile Queensland retailer has
since closed 19 stores as well as two Hardy
Brothers stores.
In 2017, the proud family business
celebrated its centenary. At the time, CEO
Stuart Bishop – the grandson of founder
Wallace Bishop – told Jeweller that the
retailer had overcome many obstacles over
the years, including two World Wars, the
Great Depression, economic downturns
and the Global Financial Crisis of 2008.
“We have tackled and embraced the rise of
the shopping centre during the 20th Century
and of course more recently, the internet
revolution,” Bishop added.
However, despite the business’ long
history of resilience, it is fair to say that
management didn’t expect to see anything
like the coronavirus pandemic that has
caused a worldwide economic crisis.
Still, Bishop told Jeweller: “We are pleased
with the group’s performance in FY20 and
Q1 of FY21. Whilst COVID-19 presented
unique challenges for the retail sector, we
took the opportunity to restructure aspects
of our operations, including our retail
operating model, and invested significantly
in our digital offering.”
“Online shopping increased during
COVID-19, and we benefited from the
upturn in online sales as a result. The
momentum has continued in the past few
months, and Wallace Bishop is wellpositioned
as we enter our all-important
Christmas trading period.”
Bishop confirmed that the current store
count of 38 Wallace Bishop and five Hardy
Brothers stores was the same as in the
pre-COVID-19 period, adding, “There are no
plans to close any stores in the foreseeable
future. We continue to review our store
footprint, which is ‘business as usual’ for
the Wallace Bishop Group.
“Any store closures over the past 12 months
were due to ‘end of lease’.”
Meanwhile, South Australia-based Shiels
Jewellers managed to expand over the past
decade with a major move into Queensland,
where it opened seven stores.
In 2010 Shiels, owned by Transworld
Enterprises, was the seventh-largest retail
chain and 10 years later it has expanded
from 31 stores to 40.
Interestingly, it has reduced its West
Australian store count by four (17 to 13),
while South Australia, where the company
is based, increased by one (14 to 15).
OBITUA RY
Death of
fashion the
past decade
176 stores closed
104 stores closed
22 stores closed
(Online only)
20 stores closed
(Online only)
11 stores closed
(Online only)
Transworld’s second ‘brand’, Grahams
Jewellers, closed two stores, down from
eight in 2010 to six in 2020. However,
according to Toby Bensimon, managing
director of Transworld Enterprises, one
more Grahams store is scheduled to
close because “it’s not the right location”.
Rise and fall – and rise
Even more intriguing are the fortunes
of Bevilles Jewellers. Once a bastion of
Melbourne fine jewellery retailing, it was
founded in 1934 by Leo and Rae Beville and
has been in the hands of three generations
of their family since, with granddaughter
Michelle now CEO.
It first expanded outside of Victoria in
2003 when it opened its first NSW store at
Parramatta. Today its store count stands
at 24, compared with 29 in 2010. While that
figure indicates a loss of only five stores,
the story is more complex – one that is both
negative and positive.
While the recent history of
Bevilles is tumultuous, its current
position perhaps indicates the
resilience of its management...
[After] entering administration,
the business was subsequently
rebuilt, bringing its store count
back to 24.
Not only does Bevilles operate fewer
stores today than it did in 2010, over the
ensuing years two stores were closed and,
in April 2014, the chain entered voluntary
administration.
As a result, Bevilles’ store count was
forcibly reduced; 11 stores closed, bringing
to 16 the number of stores across Victoria,
NSW and South Australia.
However, the business was subsequently
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42 | December 2020