Troubled jeweller axes 100 resellers | IR News

Troubled jeweller axes 100 resellers

Posted Date: 12/01/2012

By Inside Retail

High profile international jewellery brand Pandora has axed 100 Australasian resellers as it restructures its business.

The move is designed to drive consumers into Pandora’s own exclusive stores, with the local network to be expanded through franchising. At the same time last year Pandora discontinued supplies to another 100 resellers making the cull 200 over little more than a year.

Pandora globally is struggling to stem falling sales, having expanded too far and too fast. Globally, the company has reported annual net profits were down 41 per cent to 341 million Danish kroner (A$61 million) compared to 578 million kroner in the previous corresponding period.

Jeweller magazine in Australia reports the axeings were announced by Pandora Australia president Karin Adcock in an email and letter to all Pandora retailers last week. Dumped resellers will have until March 31 to sell Pandora lines

She reportedly said Pandora was looking to continue to grow its brand and needed to change its distribution strategy to do so.

Jeweller quotes Adcock’s memo saying the key reasoning behind the brand’s decision was to ensure customers could access Pandora product in “the best possible representation”, something the company believed was not happening in some retail outlets currently stocking Pandora products.

“We have to make sure that when the customer is considering buying Pandora that we are offering the best possible proposition, both in terms of product and service,” Adcock explained.

“We are doing this to grow sales and ensure that the customers who want Pandora can access Pandora in a strongly branded environment, and we know for a fact that this is currently not happening.”

The Danish headquartered company’s most recent results showed the 2011 third-quarter net profit exceeded analysts’ forecasts, but recorded a significant drop in profits nevertheless.

The Australasian picture is a little brighter according to Adcock. She said Pandora was planning to continue its growth Down Under and it believed if it was being sold in a more strongly controlled environment it could maximise the opportunities currently in the market.

“We know from certain research and our own existing concept stores that there are opportunities out there.

“The key message here is we are doing this initiative to ensure that our brand keeps going in a positive direction and we maximise all of the opportunities that are currently out there in the market.”

Keywords: Pandora, jewellery

Comments:

Sunday, April 15, 2012 by Barbara Steele

Jo Lee is spot on.Pandora has been like that for years.They have no conscious when it comes to dumping.They use & abuse people.If customers knew the truth about Pandora they would be shocked.

Monday, January 30, 2012 by Justin

Really sorry to hear of retailers being dumped in such a manner. We are familiar with a number of stores who have been dumped where 80%+ of their sales are that of Pandora. It is certainly concerning to see and why long term agreements are so important between retails and suppliers.

Justin
Infocentral.com.au

Sunday, January 29, 2012 by Fank Walton

I cannot believe Pandora can be so stupid,you need as many avenues as you can get to display your products, times are bad, but customers have favourite stores they like to support,staff become friends.
The fact that you are telling me where to shop makes me anti. It is my money and I will decide where to spend it. Pandora is a nice product but not the end of the world. I can switch my receivers to another product. I just love arrogance people.

Saturday, January 14, 2012 by Jo Lee

Pandora have shown nothing but disdain for the stockists who have helped them build their brand. My sister is one of the dumped accounts and she tells me there is a lot of ill-feeling from her customers towards Pandora because of their treatment of the stockists. Pandora has already gone "off the boil" and many customers are incensed at being 'herded'to other locations to do their shopping when they would prefer to support their smaller local businesses. Pandora needs to look up the meaning of the work LOYALTY.

Friday, January 13, 2012 by Figjam

It's junk anyway

Leave your comment

CAPTCHA Validation

Code:

Name:
Email:

Please note: all comments are subject to moderation for legal reasons and to prevent spam. We'll approve your comment as quickly as we can. If you don't see it appear you do not need to repost it.