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Pandora, the world’s biggest jewellery brand by volume, expects fierce competition this Black Friday as retailers fight to lure shoppers with discounts at a time of weak consumer confidence, its chief commercial officer said on Friday.
Black Friday typically draws crowds, but inflation and unemployment could dampen spending this year. The event is a key earner for Pandora, which is also grappling with US import tariffs and a surge in silver prices.
“The market in general is becoming more promotional, more aggressive,” Pandora’s chief commercial officer Massimo Basei told Reuters, adding that competition was more intense than a year ago. “We all read the news about inflation... and since we are a brand that speaks to the masses, of course we feel it.”
Pandora has seen good store traffic, Basei said, but shop assistants are having to work harder to convert browsers to buyers. “What we’re seeing is that certainly consumers are more cautious,” he said.
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The $9.4 billion Danish brand makes silver bracelets and charms at its own factories in Thailand, and sells around the world, with the US its biggest market. About 40 percent of Pandora’s annual revenue is made in the fourth quarter, when it sells seven pieces every second during peak holiday shopping. The company has raised prices in the US to mitigate the impact of tariffs and the cost of silver.
This year its US deals include a silver charm bracelet for $55.99, down from $80, and a lab-grown diamond pendant necklace at half price, $249.99. But not everything is on sale: Pandora is keeping its new Talisman collection off the discount list.
“It’s not just about, can we afford or not to discount? It’s about, is it the right thing to do to preserve our brand, to make sure the growth is sustainable in the long term? That is always the most difficult question to answer,” said Basei.
By Helen Reid
Learn more:
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