Australia-based jewellery retailer Michael Hill announced it is pulling out of the United States following 18 months of declining sales, including a 10 percent drop in the six months to December 31, 2017. The company has nine stores across three state in the US.
Michael Hill International chief executive Phil Taylor said, “Our time in the highly competitive US jewellery market taught us a lot and helped to strengthen our core business. However, our US operations have not gained sufficient traction in recent years and the level of capital required to scale-up the business is not warranted under current trading conditions."
Taylor had stated earlier that the US market was "difficult" and the fine jewellery sector was not performing well. The challenging environment of the US market had left the firm unable to improve its financial performance. He added that the company “had hit a wall”.
With its global headquarters including manufacturing and wholesaling located in Brisbane, the group has 347 stores globally, with 317 Michael Hill stores in Australia, New Zealand, Canada and the US, and 30 Emma & Roe stores in Australia and New Zealand.