I know of some Pandora reps that own retail stores but are reps outside of their states in which they own retail stores, i think it doesn't hurt independent retailers of Pandora besides the fact they probably can get merchandise quicker and for less money. This is an assumption but from dealing with designer lines, reps seem to hold more weight than they are willing to admit.

To answer your questions, these stores are independently owned and not a franchise. They do not have to contribute any of their profits to Pandora. There are no franchise fees. They purchase the product at wholesale as do all our retailers. The suggested retail prices are the same among all Pandora retailers. These retailers opening a concept store are subject to certain licensing agreements, in which there is no fee, however specific regulations they must comply with to use our name. There are also specific operating procedures these reatailers comply with - but again they are paying no franchise type fees to Pandora at all.

Historically, any time a branded store opens up, other retailers carrying that brand in the area usually see their sales increase, not decrease, after the company store (or whatever permutation thereof) opens up. The reason is because it gives the brand more visibility and reinforces the brand vision in an area much larger than a multi-brand retailer can devote to it. This phenomenon has held true across a multitude of categories, from sneakers to electronics to shoes to jewelry.

Hedda, you sound like the paid mouthpiece of the designer brands. Prove the historical phenomena of retailer’s sales improving because a brand opens their own store. The one thing that is certain to improve is the gross margin the wholesaler or mining company (DeBeers) is able to make. Ask a retailer who used to sell Tiffany what the impact was on their business when Tiffany pulled the line and later opened up in market they helped build. Do the current David Yurman retailers feel their sales are improving with the opening of David Yurman boutiques? Is David Yurman simply grabbing the retail margin in addition to their wholesale margin?

Hedda, Hedda, Just where did you learn retail..Does Chevrolet sell new Fords, with Ford across the street NO. When a major brand opens up in direct competition with their customers, i know this is unethical. Case in point Movado close out stores competing with their customers...BAD BAD..First thing i did when i owned a retail store and had wholsalers sell to the public, i would close my account with them. Most of those wholesalers are gone now, because they were greedy and cut their throats in the industry.Either you are wholesale or you are retail, you cannot walk both sides of the street.

I have been a Pandora dealer for 3 years. Since they have gone to the concept of store in store partnerships they are edging out the small retailers who have built their business. All retailers are now required to carry their whole line, not just the bracelets and charms. I can say the bracelets and charms sell the rest is garbage that does not sell and takes up precious retail space. It seems to me what Pandora wants is to just have stores that carry only their line. Eventually all dealers who carry other lines will be dropped. The way they are headed you are a Pandora dealer period. Pandora is currently going to retailers and telling them they have to stop selling successful lines if they want to carry Pandora. It is unethical.