Jewellery giant Pandora has had to shut a number of shops in Italy due to the coronavirus outbreak
While the brand has been able to reopen most its shops in China, albeit with slow store traffic, the business has now had to pull the shutters on 30 of its 148 boutiques in Italy.
Italy, which is battling to contain the biggest outbreak of the virus in Europe, is Pandora’s third largest single market after the United States and Britain.
Pandora had closed more than 100 of its 237 shops in mainland China, the world’s biggest luxury goods market which together with Hong Kong account for about 10% of the company’s annual sales, but currently only 32 remain shut.
“On a normal day, we would have shy of 200 customers come through a store in China. During the worst period of February, we only had around 15 customers through the stores that remained open,” Pandora chief executive officer, Alexander Lacik tells Reuters, adding that it will “take some time” to get the daily number of customers up again.
Although people have been staying out of shops in Asia, the CEO says Pandora’s e-commerce business in China, Hong Kong, Macau and Taiwan has been performing “reasonably well” during the virus outbreak.
The company has not yet made any changes to its profit projections for the year, although the boss acknowledges that if mass store closures continue to happen around the world, then this could take its toll on the company’s fortunes.