Pandora, the well-known jewelry giant, has recently announced its decision to keep all of its thousands of stores open despite the economic challenges posed by the ongoing pandemic. CEO Alexander Lacik has given assurance to employees that their salaries will be maintained, reflecting the company’s preparedness to withstand the decrease in sales without resorting to permanent closures.
At the height of the pandemic, 80% of Pandora’s 2,700 stores were forced to shut down temporarily, yet the company continued to support its 28,000 employees financially. Currently, around 18% of Pandora’s stores are closed due to the second wave of Covid-19 in Europe, potentially impacting the crucial Christmas shopping season. Despite this setback, Pandora remains hopeful and is pushing forward with its holiday marketing campaigns.
While online sales experienced a remarkable 89% surge in Q3, accounting for 21% of the total sales, Lacik stresses the significance of physical stores in the retail landscape. He believes that offering customers a seamless shopping experience across both in-person and online platforms is key. This strategy has been reinforced by the profitability of Pandora’s physical stores, thanks to investments in enhancing the in-store customer journey.
The latest financial reports from Q3 show a 2% decline in overall sales, marking an improvement from the 20% decrease in the initial nine months of the year. Despite a drop in revenue to DKK4.07 billion, the company’s gross margin slightly decreased to 78.1%. The positive trend in Q3, with October sales up by 8%, reflects encouraging growth. However, Pandora refrained from providing updated guidance for the future due to the uncertainties brought by the pandemic.
Moving forward, Pandora is committed to its brand transformation alongside the successful execution of its Program NOW strategies, which have notably boosted brand engagement. The company’s global merchandising tactics and best practices have led to enhanced conversion rates online and offline. As consumer behaviors evolve in response to the pandemic, Pandora is navigating the changing retail landscape with resilience and a forward-looking approach.
For further information and updates about Pandora’s response to the pandemic, you can visit their official website here. Additionally, to explore more about the latest trends in the jewelry industry, check out this insightful article here.
