The results exceeded expectations, with Jorge Joaquim, chief financial officer, Showcase Jewellers, saying the group’s profits had “almost doubled” in FY2020-21 compared with the previous financial year.
Joaquim attributed Showcase’s performance to a number of factors during the COVID-19 pandemic: “The government provided various types of assistance to businesses and individuals. Businesses received cash-flow boosts and JobKeeper, individuals were able to withdraw from their superannuation funds, and with the Australasian borders closed, no-one could – and still can’t – travel overseas.
“So much money in the [local] economy led to a spending spree, including the jewellery industry. Just like many other businesses, our profits were beyond our expectations,” he told Jeweller.
Joaquim described Showcase as “a very stable entity and financially well-governed”, with “well-established retailers” as its members.
In a statement announcing the financial results, Showcase management noted, “Although current pandemic circumstances present as challenging, Showcase Jewellers has held steadfast in providing consistent support to its members over the past 12 months, while many members in turn have persevered through trials to thrive in unprecedented times.”
During the 2020-21 financial year, the buying group implemented a three-month period without charging members and distributed refunds totalling $1 million from members’ ‘trading loan’ pool of funds.
As Australasia’s only member-owned jewellery buying group, Showcase charges a 1 per cent fee on purchases which fund the trading loan, with all profits distributed to members annually; each member’s trading loan balance is fully refunded once they retire from Showcase.
With retailers in NSW and Victoria currently impacted by a fresh wave of extended lockdowns, Joaquim said Showcase management was “evaluating the situation in key COVID-19 areas to assess members’ needs and will take action accordingly for specific cases”.
As at 1 December 2020, Showcase Jewellers had 159 members across Australia, New Zealand and Vanuatu; the buying group marks its 40th anniversary this year.
More reading:
Management exit at Showcase Jewellers
Buying Groups through the Pandemic - 2020 State of the Industry Report