Taste Holdings has added another jewellery retail outlet to its retail arm with the purchase of Arthur Kaplan Jewellers from AKJ Holdings for R85 million cash, subject to certain suspensive conditions to be fulfilled by 1 December 2014.
Carlo Gonzaga, Taste Holdings’ CEO confirmed that the purchase of Arthur Kaplan Jewellers would give them the opportunity to compete in the upper income consumer market segment. The 10 Arthur Kaplan branded outlets and one World’s Finest Watches outlet are situated in major shopping malls and, over the 40 years of their existence have established a reputation in the retail watch market as stockists of premium luxury brands including Rolex, Breitling, Omega, Tag Heuer and Longines.
The brand also retails luxury fine jewellery in collections under its own brand with a focus on engagement and bridal pieces which represents 40% of the revenue in its stores. Although currently not a dominant revenue category, Gonzaga believes this jewellery offering is aligned to Taste’s current manufacturing capability with potential to grow the Arthur Kaplan jewellery offerings and its revenue contribution. As a leader in the luxury Swiss watch segment in South Africa Arthur Kaplan reported, in the year to June 2014, R224.3 million in sales and adjusted profit after tax of R12.4 million.
Reference: The Franchise Association of South Africa – www.fasa.co.za.