22 Jun 2018

Michael Hill Jeweller pulls plug on low-cost brand

3:47 pm on 22 June 2018

Jewellery retailer Michael Hill International will close its remaining Emma and Roe shops and concentrate on its core brand.

Michael Hill Jeweller

Michael Hill Jeweller Photo: RNZ / Calvin Samuel

Earlier this year the Australian company decided to shut 24 of the stores, which sell cheaper lines of fashion jewellery and accessories.

But it said after a further review it has decided to close the remaining six stores and focus on the Michael Hill brand, which makes up virtually all of the group's earnings.

Chief executive Phil Taylor said the lesser quality segment was a "compelling market", but it would need to be done at the right time.

"We have decided that a singular focus on the Michael Hill brand will best position us to deliver a stronger customer proposition and financial results.

"Management resource and capital that would have been required to reposition the Emma & Roe brand will instead be directed to our core business," he said.

The store closures will cost the company $A3.1 million in redundancy and lease terminations, with further unspecified costs for writing off the cost of stock.

The company has booked costs of between $A5.8m and $A7.9m to shut the bulk of the chain.

It is Michael Hill's second retreat from an unprofitable market this year.

In January it quit the American jewellery market at a cost of about $A5m.