New Zealand jeweller Michael Hill is to close down its US operations following a strategic review.
The complete exit of its loss-making retail operations in the US comes after continued poor performance saw same-store sales drop a further 10 per cent in the retailer’s most recent trading update.
Since launching in the US in 2008, the Michael Hill US business has struggled to provide a return for the group despite significant investment into developing a viable business model.
“Our time in the highly competitive US jewellery market taught us a lot and helped to strengthen our core business including the development of our bridal collection strategy and the development of our professional care plan,” said Taylor.
“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.”
After the US closures are finalised, Michael Hill will continue to operate more than 300 stores globally, including 172 in Australia, 53 in New Zealand and 83 in Canada.
The company said it continues to see significant long-term value in its Australia, New Zealand and Canada businesses. which continue to perform strongly. During the first half of the current year, those stores accounted for 95 per cent of total group revenue and recorded same-store sales and total revenue growth of 1 per cent and 5 per cent respectively.