PANDORA to acquire its PANDORA store network in Belgium and Luxembourg

PANDORA has made an agreement with Gielen Trading to acquire its PANDORA store network in Belgium and Luxembourg on 30 June 2017. This move comes as part of the company’s efforts to increase control of the PANDORA brand. The acquisition is consistent with PANDORA’s intentions to increase the owned and operated retail footprint in markets of importance and will grant PANDORA the opportunity to enter Belgium and Luxembourg directly. June 30, 2017, will be when Gielen Trading’s distribution rights to PANDORA jewellery in the two countries expire.

PANDORA will pay a total of EUR 14 million (approximately DKK 104 million) to Gielen Trading, of which around EUR 2 million is related to inventory, as per the agreement.

Following this agreement, 13 PANDORA owned concept stores and three shop-in-shops located in the two countries will become part of the PANDORA retail chain. PANDORA jewellery is currently available in 25 concept stores, 29 shop-in-shops and around 100 multi-branded stores in Belgium and Luxembourg.

David Allen, President of EMEA in PANDORA said: “Gaining control of the distribution of PANDORA jewellery in already established markets is an integrated part of our strategy to increase control of our brand. Gielen Trading has done a tremendous job in building the PANDORA brand as well as a sustainable branded network in Belgium and Luxembourg, and we will now continue the journey to establish PANDORA as the most loved jewellery brand in these countries.”

The agreement will be effective as of 30 June 2017 and is subject to certain conditions to be fulfilled. In 2015, the acquired PANDORA stores and the existing wholesale network in Belgium and Luxembourg generated revenue of approximately EUR 21 million (approximately DKK 155 million). Going forward the operations in Belgium and Luxembourg will be operated out of PANDORA’s offices in the Netherlands. PANDORA jewellery has been available in Belgium and Luxembourg since 2004.