Swarovski UK sales continue to slide
In the latest indication of high street pressures hurting retail businesses, crystal jewellery firm Swarovski has posted a significant decrease in UK revenues.
The company’s UK arm revealed on Friday that sales continued to fall in 2018, down by 12.3%, after experiencing a 10.6% drop in the previous year.
Revenues across the Austrian jeweller’s UK business have been shrinking for the past three years, reaching £65.1 million in the 2018 calendar year, compared to £74.2 million in 2017 and £83 million in 2016.
The international maker of crystal jewellery blamed weaker footfall and a decrease in the size of its store network for the drop in sales.
However, the family-owned business managed to return to profitability after reducing distribution costs, reporting profit before tax of £2.4 million compared to a pre-tax loss of £1.2 million a year earlier.
The continued decline in UK sales coincides with a rise in online jewellery, with British consumers now having a larger supply of trend-led jewellery in a range of price points at the click of a button.
Last month, Pandora, a Swarovski rival, unveiled a new positioning together with a major ad campaign in a bid to lure customers back to the business. The brand new identity, marked by a millennial pink aesthetic, comes with more product innovation, including the release of micro charms designed especially with Gen Z and millennial shoppers in mind.
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