Michael Hill Jewellery to get competition from The Warehouse

By NZPA

Monday 10th March 2003

Budget jewellery retailer Michael Hill International is about to get full scale competition from discount retailer The Warehouse.

The Warehouse said today it was satisfied with trial sales of jewellery in four of its "red shed" stores and would roll out jewellery sales to all stores this year.

Chief executive Greg Muir said his firm would be in a similar market to Michael Hill. However, The Warehouse items were likely to remain at below $1000 in price, whereas Michael Hill sold some items beyond that.

Asked if Michael Hill had to beware, Mr Muir said: "We don't tend to send those sorts of messages, it's for other people to draw those conclusions."

The company would not reveal its sales target for jewellery.

"It's obviously a big opportunity, there's no doubt about that," Mr Muir said.

Both companies have been amongst the best performers on the sharemarket over recent years but each has come off sharply since late January -- Michael Hill to $4.60 from $6.30 and The Warehouse to $5.49 on Friday from $7.40. Michael Hill shares were unchanged today while The Warehouse rose 5c to $5.54.

Comments from our readers

No comments yet