Jeweller - March 2024

ADDENDUM TO THE
2024 STATE OF THE INDUSTRY REPORT
Going it alone:
Why is Queensland different?
Over the past decade, Queensland's number of jewellery stores has
decreased dramatically more than any other state. Why?
43%
Decline in independent
jewellery stores in
Queensland between
2010 and 2023.
Queensland is the only
state in Australia where
the majority of the
population does not live
in the capital city.
KEY FINDINGS: AT A GLANCE
Queensland has more
chain stores and buying
group members than
Victoria, despite the
difference in population.
329
Independent jewellery
stores in Queensland
as of 2023.
Q ueensland and Queenslanders are different.
Just ask them!
They will list many reasons why and quickly remind
you that Queensland is ‘beautiful one day and perfect
the next’.
While that iconic Queensland government tourist
slogan may well be accurate, many of the reasons
given as to why the northern state is different are
less clear.
Said another way, the examples that Queenslanders
will likely give about their state being different to the
remainder of Australia may be accurate; however, it’s
not the entire picture.
This is particularly true when it comes to the jewellery
industry. Indeed, Australia’s second-largest state offers
a far more complex economy than any other.
This partly explains why, since 2010, the number of
retail jewellery stores – chains and independents -
declined from 919 to 680.
This 26 per cent drop was the largest among all
states, with NSW, Victoria and WA declining by
around 14 per cent. Regarding independent jewellery
retailers specifically, the figures are more alarming.
The 2024 State of the Industry Report (SOIR) found
that Queensland’s ‘mum-and-dad’ independent
retailers declined by 43 per cent (from 577 to 329).
This was more than twice the figure for NSW (19
per cent) and Victoria (21 per cent). The decline of
independent stores in WA (23 per cent) and SA (25
per cent) aligned with trends in NSW and Victoria.
So what precipitated the much larger fall in the
Sunshine State?
Queensland’s befuddling retail landscape
When questioning why Queensland’s retail sector
does not conform to these trends witnessed in other
states, it’s important to consider additional data
uncovered by the SOIR.
For example, given that independent jewellery stores
experienced a sharp decline from 2010 to 2023, what
happened to fine and fashion chain stores?
Over the past 13 years, NSW and Victoria each
‘lost’ 11 per cent of their chain stores.Meanwhile,
Queensland’s chain store count remained consistent.
Declining from 316 in 2010 to 309 in 2023, this two
per cent drop over the period was negligible.
Indeed, it’s fascinating that Queensland has more
jewellery chain stores (309) than Victoria (272)
despite the difference in population. If you need
further proof that Queenslanders seem to have more
affinity with chain store products and shopping, then
consider the fashion jewellery category.
Despite the considerable difference in population
compared with NSW (2.9 million more people) and
Victoria (1.4 million more people), Queensland more
than holds its own regarding fashion jewellery stores.
Queensland has the same number of fashion
jewellery stores as Victoria (71), while NSW (73) has
just two more stores.
On the surface, Australia’s two largest fashion
jewellery chains – Lovisa and Colette – appear to
have a similar strategy regarding stores in Victoria
and Queensland. Coincidentally, both chains have the
same number of locations in Queensland as they do
in Victoria despite the difference in population.
The SOIR recorded 43 Lovisa stores in Queensland
and 43 in Victoria, while Colette had 16 locations in
Queensland and, like Lovisa, the same number in
Victoria (16). As they say in the movies: “Now, here’s
the thing!”
Consistent with population statistics, NSW has
more buying group members (200) and buying group
stores (225) than Queensland (109 and 132). That
said, once again, the Sunshine State’s figures exceed
Victoria’s, with only 106 members and 131 stores.
It’s important to remember that these results follow
a 43 per cent decline in the number of ‘mum-anddad’
independent jewellery stores since 2010!
With that said, this is not a new trend. Jeweller’s
2016, 2018, and 2020 Buying Group Reports indicated
that more Queensland retailers were members of
one of the three buying groups compared to Victoria.
The plot thickens further when considering brandonly
stores. Given that fine and fashion jewellery
chains have a strong presence in Queensland,
it’s fair to assume that a similar trend would be
reflected in brand-only stores, right?
Wrong! In another baffling contradiction, the number
of brand-only stores in Queensland is only about half
that of NSW and Victoria.
Between 2010 and 2022, Queensland’s population
increased from 4.49 million to 5.41 million, meaning
around 20 per cent of the country’s population calls
the state home.
With that said, we find conflicting information across
each sector of the industry.
Queensland hosts just 16 per cent of all independent
jewellery stores, 24 per cent of fine jewellery stores,
and 27 per cent of fashion jewellery retailers.
Why is this happening?
It’s clear that Queensland is running its own race
when it comes to the jewellery industry, and it’s
expected that similar results will be found in other
retail categories such as fashion, white goods, and
so on. The question is - why?
For starters, Queensland is the only state in
Australia where most of the population does not live
in the capital city. This detail often guides the retail
landscape in other states.
Local and international tourism are vital to
Queensland’s economy. Comparing statistics
across the states is challenging; however, more
international tourists land in Sydney than Brisbane.
However, that can be deceptive because many
international tourists visit Queensland from Sydney,
usually because flights from their home country to
Sydney are their only option.
Queensland has seven international-level airports -
stretching from Coolangatta on the Gold Coast right
up the eastern seaboard to Cairns - compared to
NSW’s three city airports.
32 | March 2024