Jeweller Michael Hill International, with more than 280 stores across Australia, New Zealand, and Canada, has taken a significant step in its turnaround strategy.

After confirming a return to growth in its half-year results in early March, the group said its Q3 has continued to build on this positive momentum. Now, it eyes progress through its new-look portfolio, while leaning on its “mature” NZ market.

This momentum has brought about big changes; however, the company has announced that its five-strong brand portfolio at Michael Hill has been slashed to two. Once comprising TenSeven Seven, Watches Galore, Bevilles, Medley, and Michael Hill, the group portfolio will now focus on Michael Hill and Bevilles.

Describing this as a bid to remove complexity from the business, the group said its strategy is to “win on value, to move fast, and to run lean”. It predicts that the Bevilles business will occupy a value-focused position in the market, while Michael Hill reaches up to a high-premium, sub-luxury space, with little overlap between the two.

At the same time, it has created three different approaches, one for each of the countries it operates in, with New Zealand billed as its most mature market.

In this country strategy, the group said it wants to defend its position at the top of the market while refurbishing its high-traffic stores. It also wants to use AI across all of its systems to become a completely ‘AI-powered’ retailer.

The group also said it wants to continue developing its dual-model store footprint, which includes both core and flagship locations.

But the pressure is on for Bevilles: the next phase for the group is to bring the value-driven brand back to performance through “consistent store-level profitability” before expanding its store network.

In an update to shareholders, Michael Hill International said that Bevilles “must generate returns that justify the capital invested” while creating shareholder value.