pril, 2014. This, amid higher operating costs, landlord constraints in reducing shop sizes and the Global Financial Crisis reducing average spend. A month later, Bevilles was bought back by the family through a deed of company arrangement, with the company subsequently undertaking a new strategy involving smaller shop sizes, and a more distinct focus on premium and exclusive product ranges. Perfect timing Started by her grandparents Leo and Rae Beville, CEO Michelle Stanton – whose role will transition to company ambassador following the sale – told Inside Retail that Michael Hill came at the perfect time for the business, which had grown its store network back to 26 stores across Victoria, New South Wales and South Australia. And, with a store network of about 150 stores across Australia, New Zealand, Canada and internationally, Stanton said that Michael Hill was well-placed to propel the expansion of the longstanding jewellery chain. “Michael Hill is one of the premier jewellers in the world, and [there’s] plenty of room to expand Bevilles in a way that doesn’t compete with the Michael Hill brand,” she said. “Bevilles is a successful brand, but it desires to be much bigger than it is. We didn’t feel we were the people to [expand] the brand to a level that it is capable of achieving. “It was perfect timing for someone like Michael Hill to take the reins.” This was affirmed by Daniel Bracken, CEO and MD at Michael Hill, who described the acquisition as a strong strategic fit, due to its profitability, growth potential and premium positions.  Beville’s DNA Back in 2014, Stanton said that the business model was quite different. At that time, it had larger format stores – on average, about 180sq m – and focused on high volume giftware and jewellery with relatively low price points. She explained that the business was providing customers with high service for low-value items. When the GFC hit, its stores were very busy, but – with average spend of about $50 – it wasn’t exceeding the extremely high cost of doing business. With the business incurring losses, it underwent the voluntary administration process. And, after the business was bought back, Stanton said that they gave the business a second life. “Through that process, we went from about 30 stores to 14 at that time. We [kept] the corner-sites, but downsized from 180 to 80sq m. It allowed us to be not all things to everyone, but a fabulous diamond and gold jewellery brand,” she said. “We still sold silver and watches, but focused on the two main areas where we really wanted to grow.” Stanton added that the brand doubled down on its friendly and accessible customer experience, and continued to leverage its strong loyalty program which reportedly has over 1.1 million members. “The accessibility of our price points and wide range of offers that we had – starting at $30 – enabled customers to come back frequently and for different occasions. They could buy something significant like an engagement ring, or a gift for friends or family.  “We believe that our position was quite unique in the market. Other jewellers felt old fashioned or intimidating, but we went for the friendly, accessible position. “Repeat shoppers and feeling very comfortable with the brand was always part of our DNA. But we were more jewellery focused post 2014 [which] helped to build confidence in the ranges that we started developing in the diamond space.”  Occasions to be celebrated In the years following the restructure – and driven by the release of exclusive ranges – Stanton noted that average customer spend gradually increased from $50 to about $250.  Regarding how the jewellery industry had evolved over the years, she explained that customers had become more discerning, and wanted to shop at brands with a single-minded focus.  She said that customers still appreciate the value of jewellery, and are willing to spend regardless of financial pressures. “What’s beautiful about the jewellery category is that there’s always occasions that need to be celebrated. Even during Covid-19 restrictions – and in times coming ahead now – jewellery is very resilient,” Stanton said. “There might be a slight drop in average sales, but ultimately, people are still getting engaged and married, having birthdays, celebrating Mother’s Day and so on.  “There’s always a reason to buy jewellery. It’s not like buying flowers that are gone in a week. They’re investing in something that’ll be worn and loved for decades.” Following the acquisition, Stanton will continue as the face of the brand.  She believes that Michael Hill would look to enhance the brand’s strong points in the years to come. “In essence, they love the brand and they want to grow it. They understand our positioning in terms of being accessible and friendly, with customers feeling comfortable shopping at Bevilles,” she said. “They’re excellent retailers, and I believe they’ll find ways to enhance all of that.”