The Danish jeweller Pandora, one of many few retailers at present rising the variety of shops it operates, is making the most of the property downturn to enhance its rents and safe higher places.

Alexander Lacik, the jeweller’s chief govt, mentioned that earlier than the Covid-19 pandemic rents had been “operating scorching” and it was exhausting to get one of the best retailer places in metropolis centres or purchasing malls.

“Now as instances are more durable, there are many alternatives to get good rents, however much more importantly to get triple A places,” he advised the Monetary Occasions.

Recognized for its allure bracelets, Pandora is among the world’s greatest jewellers by items bought and competes within the mass market quite than the upper finish like luxurious teams corresponding to LVMH.

Final yr, the Danish group opened 88 new shops on a web foundation and expects to open an additional 50-100 in 2023. It had 2540 shops world wide by the top of 2022, two-thirds of which it operates itself. The remainder are run by franchisees or different distributors, whereas their items are bought in almost 4,000 different places corresponding to retailers inside bigger retailers.

“Half of our prospects are males. Males need assistance with jewelry. We have to know what you’re searching for. Bricks and mortar are tremendous related for us. I’m going to be lifeless earlier than this adjustments,” Lacik mentioned.

Pandora’s shops boosted its working profitability inside a month or two and had been money stream constructive inside a yr, he added.

Many retailers are shifting away from bodily shops as on-line gross sales enhance in significance. H&M, the Swedish vogue retailer, as an example closed 336 shops final yr — about 7 per cent of its whole — on a web foundation, and mentioned it will shut one other 100 in 2023.

Ecommerce has additionally elevated for Pandora with it representing 12 per cent of whole gross sales in 2019 and 21 per cent final yr. However its in-store gross sales have additionally elevated over the identical interval, by shut to twenty per cent. Revenues final yr had been DKr26.5bn ($3.8bn), and working revenue was DKr6.7bn.

Lacik mentioned that when he arrange a world actual property group on the Danish group “the very first thing I requested for was to get me out of all lengthy leases”. Now, Pandora can get out of “the overwhelming majority” of its retailers inside 3-4 years.

He then requested his group to rediscuss phrases with landlords. “I need extra flexibility and a greater location. If it’s on the identical value, that’s OK,” Lacik mentioned.

Pandora is forecasting gross sales progress of between minus and plus 3 per cent this yr, one thing which means its profitability will probably be “untouched”.

Lacik added: “The explanation quite a lot of retailers are closing retailers is that they [go] from black to pink fairly rapidly. Rents are excessive, workers prices are excessive. I can lose half the amount and nonetheless be break-even.”