Jewellery Focus June 2017 | Page 7

MONTH IN REVIEW GO ONLINE www.jewelleryfocus.co.uk START: THE MONTH’S NEWS BEGAN HERE ACQUISITION London investors buy Breitling London-based private equity group CVC Capital Partners has bought a controlling stake in Breitling for a reported €800m (£677m). Breitling’s CEO Théodore Schneider said the deal will leave CVC with an 80% stake, and Breitling will retain the remaining 20% of the group. “I am convinced CVC is the right partner to elevate Breitling to the next level,” he said. “CVC’s expertise, track- record and international network will help unlock Breitling’s full potential.” Alexander Dibelius, managing partner and head of Germany at CVC, added: “Breitling has a proud heritage, high brand awareness, and enjoys an excellent reputation as one of the finest watchmakers in the world. We very much look forward to working with Théodore Schneider as we embark on Breitling’s next chapter of growth.” Daniel Pindur, senior managing director at CVC, added: “Using our network and expertise, CVC will work to make this global, iconic brand even more renowned and help shape the future of one of Switzerland’s last independent watch manufacturers. “Specifically, we see significant growth potential for Breitling in both existing and new geographies by driving the digitisation of the marketing and distribution channels in the company, helping to enrich the product and customer experience.” June 2017 | jewelleryfocus.co.uk INDUSTRY STATISTICS Gold demand drops by 18% The global gold demand in Q1 of 2017 has dropped by 18% when compared to last year, according to the World Gold Council’s latest Gold Demand Trends report. While inflows into exchange traded funds (ETFs) were solid, the demand couldn’t match 2016’s “exceptionally high” Q1. European-listed products were the most popular with Germany and the UK leading ETFs inflows. Jewellery demand remained stable, up by 1% on last year’s Q1. Alistair Hewitt, head of market intelligence at the World Gold Council, said: “Demand is down year- on-year, but that is largely because Q1 last year was exceptionally high. “Although we did not see the record-breaking surges in ETF inflows experienced in Q1 2016, we have seen good inflows nonetheless this quarter, with strong interest from European investors ahead of the Dutch and French elections. “Retail investment demand is strong too, up 9% year-on-year with demand worth over $11bn (£8.5bn) in Q1. China led the way with bar and coin demand surging 30%, breaching 100t for only the fourth time on record, fuelled by concerns over potential currency weakness and a frothy property market. “Elsewhere t he picture was less rosy: central bank demand was down and jewellery demand is still in the doldrums, although there are signs of improvement, especially from India where the gradual remonetisation of the economy is supporting the jewellery market.” I am convinced CVC is the right partner to elevate Breitling to the next level Breitling’s CEO Théodore Schneider 1 2 3 4 5 6 Hallmarking in April fell 13.2% to 686,039 items (compared with the previous April) CLOSURE High business rates force award-winning jeweller to close An award-winning jeweller has been forced to close his Southport store due to high business rates. Peter Jackson MBE, owner of Peter Jackson the Jewellers, decided to shut his store after 20 years in the area. With other Peter Jackson stores in Preston, Blackburn, Bury and Carlisle, the Southport outlet is his only one which does not make a profit. Jackson explained his decision to close the store saying he could “no longer justify” paying high business rates and rental space for the property which sits opposite a Sainsburys on Lord Street. He added that trading had “become more difficult”. Jackson said: “I am very grateful to the people of Southport for their custom and support over the years and I hope that we may have the pleasure of welcoming many of our loyal customers to our beautiful store in St Georges Centre, Preston. “I shall be very sorry to leave Southport and I hope that the local authority will realise that an urgent effort to revitalise the town centre and particularly Lord Street is needed.” The Southport staff will be offered jobs in other outlets under the brand and a final closing date is yet to be confirmed. JEWELLERY FOCUS 7