Michael Hill International, the jewellery retailer 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.

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” with Bevilles. 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.

CEO Jonathan Waecker’s predecessor, Daniel Bracken, told The Australian Financial Review in 2024 that Michael Hill wants to occupy the space “below Cartier and Tiffany” in the jewellery market.

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 looking at 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.