Swarovski, the well-known crystal jewelry brand, is currently grappling with significant challenges in the UK market as its sales continue to decline. The UK arm of the company reported a 12.3% decrease in revenues in 2018, following a 10.6% drop in the previous year. This marks the third consecutive year of shrinking sales, with 2018 seeing a total of £65.1 million in sales compared to £74.2 million in 2017 and £83 million in 2016.
The decline in sales has been attributed to a decrease in footfall and the downsizing of the store network. Despite these obstacles, Swarovski has managed to return to profitability by reducing distribution costs. The company reported a profit before tax of £2.4 million, a significant improvement from the pre-tax loss of £1.2 million the year before.
This decline in UK sales comes at a time when online jewelry sales are experiencing a surge in popularity. With a plethora of trend-led jewelry options available at various price points online, consumers now have more choices at their fingertips than ever before. In response to these changing consumer behaviors, Swarovski’s competitor Pandora recently launched a new brand positioning and a significant advertising campaign to entice customers back to the brand.
The rebranding initiative includes a fresh, millennial pink aesthetic and innovative product offerings like micro charms tailored specifically for Gen Z and millennial shoppers. With e-commerce gaining ground, traditional brick-and-mortar retailers like Swarovski are faced with fierce competition and must evolve to meet the evolving demands of the market.
For more information on Swarovski’s latest collections and store locations, visit their official website here. To explore the latest jewelry trends and styles, check out this helpful guide here.
