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Home / Business / Companies / Retail

Makeover for Michael Hill

By Maria Slade
NZ Herald·
7 Oct, 2009 03:00 PM2 mins to read

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Michael Hill says the new fitout is designed to look more sophisticated. Photo / Brett Phibbs

Michael Hill says the new fitout is designed to look more sophisticated. Photo / Brett Phibbs

Listed jewellery retailer Michael Hill International unveils its new shop format today with a champagne function at its flagship Queen St store.

It is one of the first to get the new fitout, which the company plans to roll out to its 250 sites in New Zealand, Australia, Canada and
the United States.

The charcoal grey and moody lighting gives a more modern and sophisticated feel, founder Michael Hill says. "This is the new us."

The format would open in its four Chicago stores soon, he said.

Michael Hill bought the chain of 17 Whitehall Jewellers stores in Illinois and Missouri out of Chapter 11 bankruptcy last year.

"When you're opening in a new market and opening in a place like Chicago that has been particularly depressed you can't just roll out the old thing and expect it to work."

He said the company probably wouldn't have taken the redesign as far as it had if it wasn't for its problems in the United States. "It's really when you have to do things that you come up with your best."

The new shop layout had been built in its entirety at the company's head office in Australia, including a last-minute lighting design that Hill described as revolutionary.

Hill has said his aim is to turn the chain into a global brand and grow to 1000 stores.

As part of that branding strategy the company is launching two fragrance products next year.

In August Michael Hill reported a 46.3 per cent drop in pre-tax profits for the 2009 year.

Net profit before tax fell to $20.1 million, down from $37.5 million in 2008.

However a one-off deferred tax credit of $53 million took tax-paid profits to $69.5 million.

Shares closed yesterday at 68c.

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