<strong>2024</strong> STATE OF THE INDUSTRY REPORT WHAT HAPPENED IN QUEENSLAND? TABLE 1: 2023 POPULATION COMPARISON Why is Queensland different? NSW VIC QLD WA SA TAS ACT NT TOTAL State Population 8,293,965 6,766,559 5,418,453 2,855,594 1,844,616 572,660 464,601 251,700 26,468,148 Percentage of National 31.34% 25.56% 20.47% 10.79% 6.97% 2.16% 1.76% 0.95% 100.00% State Size (km²) 800,150 227,416 1,729,742 2,527,013 984,321 64,519 2,358 1,347,791 7,683,310 Population density 10.24 28.47 2.93 1.08 1.77 6.31 6.04 0.18 57.02 International Airports by State 3 2* 7 3 1 1 1 1 17 All Independent stores 754 499 329 187 136 61 30 14 2,010 Chain stores - Fine jewellery 297 201 238 137 62 16 24 12 987 Chain stores - Fashion jewellery 73 71 71 25 15 2 6 2 265 Brand-Only stores 89 74 42 22 8 - 3 1 239 Total stores 2023 1,213 845 680 371 221 79 63 29 3,501 Total stores 2010 1,417 984 919 432 277 85 72 39 4,225 Decline - 2010 V 2023 -204 -139 -239 -61 -56 -6 -9 -10 -724 % Decline - All stores -14.40% -14.13% -26.01% -14.12% -20.22% -7.06% -12.50% -25.64% - % Decline Independent stores only 19.19% 21.29% 42.98% 22.73% 24.86% 6.15% 26.83% 46.15% - This table is a comprehensive analysis that demonstrates the many ways that Queensland differs from all other states when it comes to the jewellery industry. Over the past decade, independent jewellery retailers in Queensland have declined at a greater rate (43 per cent) than in all other states. What's not well recognised is that Queensland has more fine jewellery chain stores than Victoria, and an equal number of fashion jewellery chain stores, despite the significant population difference between the two states. * Victoria has two international airports; however, they are both in Melbourne. Queensland, because of its size and population spread, has international-level airports in seven different cities. “Since 2010, family-owned jewellery businesses have also had to close their doors due to the next generation choosing not to take on the business or due to retirement,” she explained. Coincidentally, this was also highlighted by <strong>Jeweller</strong>’s retailers survey. Retailers were asked: I intend to retire or sell my business in the next five years. A startling 38 per cent of respondents indicated that they ‘strongly agreed’ or ‘agreed’ with this statement. Nationwide <strong>Jeweller</strong>s managing director Colin Pocklington suggests that Queensland’s overall decline in independent jewellers can be partly attributed to an ‘exodus’ from shopping centres. Nationwide has 64 members in Queensland, accounting for 71 stores. Pocklington agreed with Keers and connected the decline to the importance of custom-made and bespoke jewellery. “There are very few independents in shopping centres as it is. There are many reasons why this is the case; however, a factor you can’t ignore is the extra rent you pay compared with the customers you attract to your stores as an independent compared with a chain store,” he explains. “I think many jewellers have discovered that it’s not worth paying for the premium rent of a shopping centre location because your customers will find you for custom-made jewellery and repairs at a high street location all the same.” Pocklington continues: “I think this decline is also a continuation of the growing importance of custommade jewellery as a part of the business. "Selling finished merchandise, which is more of a shopping centre practice, has become less important for independent jewellers.” Chain store equation Based in Fortitude Valley in Queensland, Mark Cotterell is the owner of Mark Cotterell Master <strong>Jeweller</strong>s. “Social media has allowed greater visibility for small non-storefront jewellers to be seen and build business bases whilst many traditional bricks-andmortar ‘family style’ jewellers had limited workshop facilities and little to no designer elements to their businesses,” he says. “Queensland has a strong base of chain jewellers, 34 | <strong>March</strong> <strong>2024</strong> probably more so than other states. The jewellers that buy jewellery and have no craftsman on site are the shops that have been exposed to a much larger extent, and there aren't a lot of well-trained jewellers left. “Many of those now work for themselves and are active on social media.” Cottrell’s view is backed by the SOIR research that, as indicated above, Queensland has more fine jewellery and fashion chain stores than Victoria. For example, Angus & Coote has more stores in Queensland (32) than it does in Victoria (20), as does Goldmark (22 and 8). Both chains are owned by New Zealand’s James Pascoe Group, which also owns Prouds, which has 67 stores in Queensland and only 47 in Victoria. Likewise, Shiels, the 50-store South Australian-based chain, also favours Queensland over Victoria despite the latter’s larger population. There are 16 Shiels stores in Queensland and none in Victoria, which would suggest that the size of the state and the fact that most of the population lives in the many varied cities offers better expansion opportunities. The only chain that goes against the trend is Michael Hill International, which – at the time of the SOIR research – had 28 Queensland stores compared to 34 in Victoria. Closing remarks Despite the challenges of the past few years, the Queensland economy has continued to expand at an impressive pace. Increased retail productivity is expected to coincide with the ongoing population explosion; however, independent jewellers seem the ‘odd one out’. The decline of independent jewellers in Queensland has occurred for many reasons. COVID-19 encouraged many businesses considering closure – whether it was because of weak sales or retirement plans – to do so. The challenges of the pandemic also encouraged many jewellers to consider shutting up shop in favour of a studio or workshop, with social media serving as the basis for meeting new customers, as opposed to a front door on a high street. Pocklington also points to a shortage of manufacturing bench jewellers nationwide, with the shortage most likely worsened in regional Queensland. Independent jewellers have also abandoned shopping centres, partly due to an increased focus on bespoke and custom-made jewellery. Customers seeking personalised jewellery will discover retailers on a high street or on social media just as easily as they would in a shopping centre, where mass-produced jewellery is more popular. With the above factors in mind, it’s important to note that just because Queensland’s independent jewellery retailers are declining overall, that does not mean the industry is ‘unhealthy’ or in trouble. Logic dictates that if discretionary spending has remained strong in Queensland, then the jewellery stores that have remained open should enjoy improved sales because of the decreased competition. Said another way, if a more significant percentage of the industry achieves improved sales, is this not an argument for a healthy industry? It’s another reminder that everything is a matter of perspective, including store closures. SOIR ADDENDUM EXPLAINED This article is an addendum to the State of the Industry Report published in December 2023. The purpose of the six-month study into the Australian jewellery industry is two-fold – it’s a historical document offering an in-depth examination of the trade from which a glimpse of the future may be obtained. As is often the case with studies of this nature, the research often uncovers unexpected insights. These include significant changes due to advances in technology, the evolution of consumer habits and expectations, and the unforeseen impact of an unprecedented global pandemic. In some cases, the space allocated to specific sections of the report was insufficient because of the additional detail and information obtained. This article is one such case where it was noted that the decline of independent jewellery retailers in Queensland far exceeded declines in other states. This was deemed worthy of further analysis. There is a host of additional information uncovered during the SOIR research period, which was also unable to be included in the initial report due to space and time limitations. <strong>Jeweller</strong> will continue to publish addendums to the SOIR to analyse and clarify an ever-changing industry.
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