Jewellery retailer Michael Hill to close 24 Emma & Roe stores in Australia, New Zealand
Tuesday, 6 March 2018
Up to 168 staff are affected by Michael Hill's decision to close 24 of its Emma & Roe jewellery stores and refocus the remaining six.
On Tuesday, the company announced the findings of a review into the trans-Tasman charm jewellery brand, saying it had identified customer demand for lower cost products.
The company employed about 168 across the affected shops, some of whom will be transferred to with other Michael Hill stores, while others would be made redundant.
New Zealand's only Emma & Roe store is in Auckland's Manukau, which will close affecting up to 7 staff members. The six remaining stores will be in the Brisbane, Australia region.
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The closure of the stores was expected to be completed by June 30.
It is expected to cost Michael Hill between A$5.8 million (NZ$6.2m) and A$7.9m to close them and pay out its staff.
Michael Hill International chief financial officer Andrew Lowe said the company had been deliberately holding some roles vacant, so they could 'bring across as many of our people'.
Michael Hill plans to 'reposition' its Emma & Roe brand by branching into demi-fine jewellery sector.
In a statement on Tuesday, the company said customers wanted more 'fine fashion' options.
'Demi-fine is a relatively new segment of the market combining fine jewellery with fashion for those customers seeking stylish, yet affordable, items to accessories their wardrobe…
'The demi-fine segment allows customers with a preference for fine jewellery to achieve their desired look but at a lower price.'
This announcement follows news Michael Hill was pulling out of the United States, following months of declining sales.
Emma & Roe is named after Sir Michael's daughter and Michael Hill chairwoman Emma Hill and his wife Lady Christine Hill, whose maiden name is Roe.
Michael Hill International, which was founded by Sir Michael Hill in Whangarei 37 years ago, has stores in Australia and Canada.