The crystal jewelry maker will focus on fewer stores with more space.
Products by the Austrian company Swarovski are represented worldwide; there are currently about 3,000 brand stores in 170 countries. However, the brand, which is well-known to connoisseurs of jewelry made from crystals and natural stones, decided to close part of its stores. Swarovski considered such a step since October 2020, when the decision was discussed at a meeting of business shareholders.
We are talking about 750 retail outlets, which is a quarter of all the company's stores. Only in Austria, the home country of the brand, 33 of the current 102 Swarovski stores will be closed. It is also reported that contracts with independent dealers of the brand will be terminated, with more than a hundred partner companies involved. Future store closures will also affect the jobs created, and the company will cut about 6,000 jobs.
Simultaneously, the company intends to focus on developing the remaining stores and its smaller number of larger outlets, offering a broader range of products.
Robert Buchbauer, CEO of Swarovski, also spoke about its plans to reduce activity in unprofitable markets and focus more on products with high margins. The brand will focus on the production of more expensive jewelry, such as rings and bracelets, and reduce the range of inexpensive products.
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