Pandora Eyes Expansion Into ‘New and Underserved’ Markets

Copenhagen, Denmark—Pandora is ready to take on the world, or, at least, a few new markets.

During its recent Capital Markets Day, the company shared updates on its “Phoenix” turnaround strategy and plans for the future, including store openings and expansions into new geographies.

The Phoenix strategy, launched in 2021, focused on sustainable growth and attracting new, younger consumers.

“Looking back at the past few years, we are proud of our achievements. We have fundamentally changed how we work, and the organization is much stronger. It’s clear that Pandora is a very different company today,” said CEO Alexander Lacik.

The company said its investments in the brand, store network, organization, and people are paying off.

The jeweler said the next chapter of its strategy will focus on scaling up investments to accelerate revenue growth.

Looking to gain more ground in the affordable luxury space, the company will boost investments in brand desirability and its store network.

“With a strengthened operating model, Pandora now has the capacity to target growth opportunities across a wider range of geographies,” said the company.

The company said it will be taking the first steps to enter into "new and underserved" markets, including South Korea, Japan, and India.

It has a “small presence” in South Korea and Japan already, said a spokesperson. It does not currently operate in India, though it did years ago in a limited capacity through a partner.

As for its existing markets, there are 7,000 “viable locations” for new stores in the regions where it already operates, according to Pandora’s analysis, first shared during its 2021 Capital Markets Day.

From 2024 through 2026, Pandora expects 225 to 275 store openings and 175 to 225 shop-in-shop openings.

Last year, Pandora announced it had partnered with Macy’s to open 28 shop-in-shops after a soft launch in 5 stores the previous year.

In 2021, Pandora set a long-term goal of doubling its U.S. revenue from its 2019 level of 4.7 billion kroner ($435 million).

It’s close to reaching that goal, clocking in at 7.9 billion kroner ($731.2 million) in 2022.

Pandora said it expects to surpass its target by 2025 with estimated revenue of 9.4 billion kroner ($870 million).

“Pandora’s market share in the US remains at low single-digit levels and Pandora sees ample growth opportunities in the U.S. beyond 2025,” said the company.

Pandora set a similar long-term goal for China, planning to triple its 2019 revenue numbers, but COVID-19 put a wrench in its plan.

Though it recently relaunched the brand in Shanghai, it expects a tough road ahead.

“Pandora continues to see significant long-term growth potential in China, but building a sizable business in China will be a longer journey than originally anticipated,” the company said.

In countries where Pandora already has a strong market share, like the U.K., Italy, and Australia, it expects like-for-like sales to grow steadily as it continues to build market share.

In markets where it has less of a strong foothold, like the U.S., Germany, and France, it expects to grow its market share and could see higher like-for-like growth.

All new stores will be under the new format, Evoke 2.0, starting in 2024. 

The company began testing the new store concept in late 2021 in Milan and London. It incorporates a simplified layout and centers around personalization, offering engraving services, with an emphasis on being able to try on the jewelry.

As two-thirds of its revenue comes from gifting, said Pandora, the stores will also have a “gifting zone.”