The Copenhagen-based jeweler will pay Gielen Trading $14.6 million (EUR 14 million) for the stores, of which $2.1 million (EUR 2 million) is related to inventory. The deal will come into effect on June 30 when Pandora will take control of the stores and Gielen Trading’s distribution rights will expire.
“Gaining control of the distribution of Pandora jewelry in already established markets is an integrated part of our strategy to increase control of our brand,” said David Allen, Pandora’s president for Europe, the Middle East and Africa. The company aims to “establish Pandora as the most loved jewelry brand in these countries,” he added.
The deal will add 13 concept stores and three shop-in-shops to Pandora’s roster of retail locations in Belgium and Luxembourg. The stores Pandora is acquiring and its existing wholesale network in the two countries generated revenue of about $21.9 million (EUR 21 million) in 2015, the company said.
