Magnolia Jewellery looks to add to its 27 stores in 2012
Aggressive expansion for jewellery retailer
By Aaron Weinman
Magnolia Jewellery has plans for an aggressive expansion program in 2012 along with an increased online presence.
The 27-store silver jewellery retailer is preparing to open a dozen new stores in key CBD locations and regional cities next year. Meanwhile, Magnolia’s Christmas pop-up website 50under50.com.au, which features 50 gifts priced under $50 found early success.
Magnolia Jewellery CEO, Nati Harpaz told Jeweller the location of the new stores will be finalised by New Year and will be opened in areas with heavy foot traffic.
“We try to place stores in affluent areas where people have somewhat of a disposable income,” Harpaz said. “In order to cover costs of opening a store, you need to be able to sell expensive jewellery as well as pieces under $50, which is a big factor when deciding location.”
Harpaz believes the company is currently too small. The CEO explained that he intends to implement extensive marketing campaigns to build brand awareness.
“We need to increase our locations to build up the brand,” Harpaz said. “We have a large operation and administration department and need to have enough stores to support it.”
Once the expansion is complete, the company may look into franchising some of its stores, particularly in key regional cities.
“I am considering the option of licensing people to operate a store in remote areas like Rockhampton and Mackay,” Harpaz added. “Franchising is also an option in other areas with big potential.”
In addition to its primary online store magnolia-jewellery.com.au, the new pop-up site – 50under50, rewards shoppers with a free snowflake pendant when customers spend more than $119.
Harpaz told Jeweller the site is promoted in Magnolia’s stores to attempt to provide a “multi-channel experience”.
“The idea behind 50under50 is all about giving consumers an option for gift shopping under $50 without actually discounting,” Harpaz said. “There is no need to discount, so we decided that rather than discounting we will create a value offer in the snowflake pendant.”
The Christmas pop-up site comes shortly after the company’s online store went live in October. Harpaz said the aim of Magnolia’s primary site is to attract both local and international customers.
“We hope having an online presence will make our expansion next year somewhat easier because now people in that area will know the brand,” Harpaz said. “When customers see the new kiosk at their local shopping centre it won’t just be some random new jewellery store.”
Launched in Israel in 1996, Magnolia has over 150 stores worldwide including the 27 currently in Australia. Specialists in sterling silver, the company has stores across North America, Europe and the UK.
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