The company wants to “increase control of our brand.”
Pandora announced that it is acquiring Gielen Trading’s Pandora store network in Belgium and Luxembourg.
The transaction is set to take place on June 30, 2017, the day that Gielen Trading’s distribution rights to Pandora jewelry in the two countries expire.
Pandora will pay a total amount of 14 million euros (US $14.61 million) to Gielen Trading related to the agreement, of which around 2 million euros (US $2.09 million) is related to inventory. In 2015, the acquired Pandora stores and the existing wholesale network in Belgium and Luxembourg generated revenue of about 21 million euros (US $21.92 million).
With the agreement, the company will add to its retail chain 13 Pandora-owned concept stores and three shop-in-shops located in the two countries. In total, Pandora jewelry is currently available in 25 concept stores, 29 shop-in-shops and around 100 multibranded stores in Belgium and Luxembourg.
David Allen, president of Europe, the Middle East and Africa for Pandora, said in a press release: “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.”