De Beers Cancels Upcoming Sight

De Beers has called off this week’s sight in Botswana, citing restrictions resulting from measures to contain the coronavirus.

Lockdowns in Botswana, South Africa and India are prohibiting sightholders from traveling and preventing the shipment of merchandise to clients’ international operations, De Beers said in a statement Monday. The company is letting sightholders defer 100% of their supply allocations to later in the year, as reported by Rapaport News on Thursday.

The miner “will continue to seek innovative ways to meet sightholders’ rough-diamond supply needs in the coming weeks,” it continued.

The sale was due to run from March 30 to April 3 in Gaborone. However, on March 16, Botswana banned entry to visitors from 18 countries, including US, China, India and Belgium — making attendance impossible for most sightholders.

Customers can usually buy De Beers’ rough remotely due to the consistency of the diamond assortments. However, demand is extremely weak as the manufacturing sector in Surat, India, has closed and the US retail market has largely shut down. In addition, the ability to transport goods around the world is limited. Sales were likely to be extremely low, rough-market sources told Rapaport News.

The unprecedented conditions prompted the World Diamond Council (WDC) and six major trade organizations to ask the CEOs of De Beers and Alrosa to consider offering complete flexibility on purchasing obligations. In a March 20 letter, bourses and trade groups in India, Belgium and Israel joined the WDC in urging the miners to treat the situation as a “force majeure” — an unforeseeable circumstance that prevents the fulfilment of a contract.

“With so many companies now down to a fraction of sales, it is imperative to keep the right balance to secure their short-term viability,” the organizations wrote.

Alrosa allowed more flexibility than normal at its March rough sale, enabling customers to defer 60% of their allocations. However, responding to the letter, it emphasized the importance of all industry participants supporting each other.

“COVID-19 is a new challenge for all of us, and it requires the industry from mine to retail to stand together and take joint innovative steps, not avoid them at the expense of others,” Alrosa CEO Sergey Ivanov wrote. “Walking away from mutual obligations is shortsighted.”

Source: DCLA

De Beers Cancels Upcoming Sight

De Beers has called off this week’s sight in Botswana, citing restrictions resulting from measures to contain the coronavirus.

Lockdowns in Botswana, South Africa and India are prohibiting sightholders from traveling and preventing the shipment of merchandise to clients’ international operations, De Beers said in a statement Monday. The company is letting sightholders defer 100% of their supply allocations to later in the year, as reported by Rapaport News on Thursday.

The miner “will continue to seek innovative ways to meet sightholders’ rough-diamond supply needs in the coming weeks,” it continued.

The sale was due to run from March 30 to April 3 in Gaborone. However, on March 16, Botswana banned entry to visitors from 18 countries, including US, China, India and Belgium — making attendance impossible for most sightholders.

Customers can usually buy De Beers’ rough remotely due to the consistency of the diamond assortments. However, demand is extremely weak as the manufacturing sector in Surat, India, has closed and the US retail market has largely shut down. In addition, the ability to transport goods around the world is limited. Sales were likely to be extremely low, rough-market sources told Rapaport News.

The unprecedented conditions prompted the World Diamond Council (WDC) and six major trade organizations to ask the CEOs of De Beers and Alrosa to consider offering complete flexibility on purchasing obligations. In a March 20 letter, bourses and trade groups in India, Belgium and Israel joined the WDC in urging the miners to treat the situation as a “force majeure” — an unforeseeable circumstance that prevents the fulfilment of a contract.

“With so many companies now down to a fraction of sales, it is imperative to keep the right balance to secure their short-term viability,” the organizations wrote.

Alrosa allowed more flexibility than normal at its March rough sale, enabling customers to defer 60% of their allocations. However, responding to the letter, it emphasized the importance of all industry participants supporting each other.

“COVID-19 is a new challenge for all of us, and it requires the industry from mine to retail to stand together and take joint innovative steps, not avoid them at the expense of others,” Alrosa CEO Sergey Ivanov wrote. “Walking away from mutual obligations is shortsighted.”

Source: DCLA

Surat Diamond Manufacturing Shuts Down

The entire polishing industry in Surat has shut until March 31 after Indian authorities introduced tight restrictions to slow the spread of the coronavirus.

Activities stopped on Tuesday in line with a lockdown enforced by the Gujarat state government. The Bharat Diamond Bourse in Mumbai also closed from Friday until the end of the month following similar measures in Maharashtra state.

“In this panic situation, all are requested to stay at home, [stay] healthy, and spend time with family,” the Surat Diamond Association and the Gem & Jewellery Export Promotion Council (GJEPC) said in a joint letter to the Surat trade on Saturday. The organizations urged companies to shut their offices and manufacturing units in the city, the world’s largest center for polishing. Safe-deposit vaults will remain open for two hours each day, they noted.

The GJEPC said it had closed its head office in Mumbai until March 31, with all employees working from home.

Source: DCLA

Surat Diamond Manufacturing Shuts Down

The entire polishing industry in Surat has shut until March 31 after Indian authorities introduced tight restrictions to slow the spread of the coronavirus.

Activities stopped on Tuesday in line with a lockdown enforced by the Gujarat state government. The Bharat Diamond Bourse in Mumbai also closed from Friday until the end of the month following similar measures in Maharashtra state.

“In this panic situation, all are requested to stay at home, [stay] healthy, and spend time with family,” the Surat Diamond Association and the Gem & Jewellery Export Promotion Council (GJEPC) said in a joint letter to the Surat trade on Saturday. The organizations urged companies to shut their offices and manufacturing units in the city, the world’s largest center for polishing. Safe-deposit vaults will remain open for two hours each day, they noted.

The GJEPC said it had closed its head office in Mumbai until March 31, with all employees working from home.

Source: DCLA

Michael Hill to Close Stores in Canada

Michael Hill will temporarily close all its Canadian stores amid the coronavirus pandemic, while locations in Australia and New Zealand currently remain open.

The jeweler’s Canadian stores are set to shut for a two-week period, but the company will reevaluate and may lift or extend the shutdown as necessary based on the health situation, it said last week. During the closure, most of the jeweler’s workforce will either be given leave without pay, or may take unused vacation time.

Additionally, the company will not provide revenue guidance for the fiscal year ending June 30, as it has not fully assessed the impact of the virus on its sales.

“In the last two weeks there has been a significant drop off in foot traffic in each of our trading markets and we are seeing a corresponding impact on sales,” the jeweler said. “The company will provide further details when they are available as part of our regular [third-quarter] trading update in early April. [We] have not provided guidance on earnings for the current financial year, and are not in a position to [give] a reliable forecast.”

Any existing analyst forecasts are also not reliable, as they were prepared without taking into account the current trading environment, Michael Hill observed.

The retailer plans to reduce any non-essential spending during this time, and will implement a hiring and travel freeze, it said. It is also speaking with its landlords about temporary rent relief during the shutdowns.

“During these challenging times, the health and safety of our people and customers are foremost in our minds,” said Michael Hill CEO Daniel Bracken. “The board and management team are confident that the business will be able to continue to work constructively with all of its stakeholders to navigate the uncertainties presented by the COVID-19 public-health crisis. We are focused on taking all necessary actions to reduce our costs and cash outflows so that they better match the very subdued demand in all our markets.”

Source: DCLA

Michael Hill to Close Stores in Canada

Michael Hill will temporarily close all its Canadian stores amid the coronavirus pandemic, while locations in Australia and New Zealand currently remain open.

The jeweler’s Canadian stores are set to shut for a two-week period, but the company will reevaluate and may lift or extend the shutdown as necessary based on the health situation, it said last week. During the closure, most of the jeweler’s workforce will either be given leave without pay, or may take unused vacation time.

Additionally, the company will not provide revenue guidance for the fiscal year ending June 30, as it has not fully assessed the impact of the virus on its sales.

“In the last two weeks there has been a significant drop off in foot traffic in each of our trading markets and we are seeing a corresponding impact on sales,” the jeweler said. “The company will provide further details when they are available as part of our regular [third-quarter] trading update in early April. [We] have not provided guidance on earnings for the current financial year, and are not in a position to [give] a reliable forecast.”

Any existing analyst forecasts are also not reliable, as they were prepared without taking into account the current trading environment, Michael Hill observed.

The retailer plans to reduce any non-essential spending during this time, and will implement a hiring and travel freeze, it said. It is also speaking with its landlords about temporary rent relief during the shutdowns.

“During these challenging times, the health and safety of our people and customers are foremost in our minds,” said Michael Hill CEO Daniel Bracken. “The board and management team are confident that the business will be able to continue to work constructively with all of its stakeholders to navigate the uncertainties presented by the COVID-19 public-health crisis. We are focused on taking all necessary actions to reduce our costs and cash outflows so that they better match the very subdued demand in all our markets.”

Source: DCLA

Tiffany, Macy’s Among Retailers Closing US Stores

 A growing number of US retailers, including Tiffany & Co., are temporarily shuttering all locations across North America in an effort to stem the coronavirus spread.

“Effective immediately, we’re temporarily closing all Tiffany stores in the US and Canada, as well as many other locations globally, to protect our teams, clients and communities,” the jeweler said in an Instagram post Tuesday. “Now more than ever it is time for us to take care of the ones we love.”

Macy’s closed all its stores nationwide as of close of business Tuesday, including its Bloomingdale’s department-store chain. However, all its brands will continue to operate via online sites and mobile apps, it noted. 

“The health and safety of our customers, colleagues and communities is our utmost priority,” Macy’s CEO Jeff Gennette said Tuesday. “We will work with government and health officials to assess when we will reopen.”

J.C. Penney followed suit Wednesday, shutting all stores and business offices in the country, noting operations were currently slated to resume April 2.

Nordstrom has also announced it will suspend operations at all its North American stores, yet the company has limited the closure to a two-week period, it said. During that time it will offer curbside pickup for online orders. Meanwhile, Saks department store has shut its New York and Philadelphia locations, according to the Los Angeles Times.

Meanwhile, Pandora will not only close its US-based stores, but will shut locations in Italy, Spain, Germany and France, among others. It has also encouraged its franchisees and multi-branded partners in affected markets to cease operations voluntarily.

Signet Jewelers has not declared official plans to close any stores, but said it would follow the advice of the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC).

“Nothing is more important than the safety of our employees and customers,” David Bouffard, Signet’s vice president of corporate affairs, told Rapaport News Wednesday.

Signet shares were down 35% since start of trading on Wednesday, March 11, while Macy’s dropped 29% and Tiffany slipped 11%.

Source: DCLA