20•BUSINESS STRATEGY
PANDORAANNUAL REPORT2014
Entering the PANDORA universe
When customers walk into a PANDORA concept store,
they are entering a complete PANDORA universe. Every
aspect of the in-store experience, from the lighting and
music to product displays and interactionwith the sales
staff, is carefully thought through. This 360° approach has
made our concept stores, alongwith our other branded
sales channels, an increasingly important part of our
businessmodel.
We continuously focus on expanding our network of
PANDORA branded sales channels, particularly concept
stores, and in 2014we started to revamp the shop
experiencewith the Evolution store design concept. In
2015, all new PANDORA stores will feature the Evolution
concept andwork on refitting existing stores with
Evolutionwill commence.
Our focus on our branded distribution network
includes opening owned and operated branded stores in
selectedmarkets when deemed feasible. This improves
implementation of our branded network strategy, which
focuses on high-quality locations and strong in-store
execution. Examples from 2014 include the acquisition of
Hannoush stores in theUS, the forward integration of our
operations in Japan and taking over up to 78 commercial
store leases in prime locations inGermany.
Concept stores, shop-in-shops and gold stores
Concept stores, shop-in-shops and gold stores are an
integral part of PANDORA’s businessmodel. Here,
our products are displayed in a PANDORA-branded
environment, giving us full control over the consumers’
shopping experience. Branded store environments have a
positive impact on sales. In 2014, branded storesmade up
85.6% of revenue, comparedwith 82.3% in 2013.
Our strategy is to increase the number of branded stores
in selectedmarkets, by upgrading silver or white stores
where PANDORA products are sellingwell and by opening
new concept stores and shop-in-shops. In 2014, we opened
310 new concept stores and 183 shop-in-shops.
SALES CHANNELS
PANDORA’S POINTSOF SALE
Consumers canpurchase our products through
9,906 points of sale inmore than 90 countries.The
points of sale range from concept stores, shop-in-
shops and gold storeswhere products are displayed
in a PANDORA-branded environment, to silver and
whitemulti-brand storeswhere our products are
sold alongside products fromother brands.
1,410
Concept stores
2,744
Silver stores
2,400
Gold stores
1,555
Shop-in-shops
1,797
White stores
Silver andwhitemulti-brand stores
Silver andwhite stores have historically been an important
part of our strategy, especially in new and expanding
markets, as the stores enable us to reach a broader
customer basewith low investment. As wemove further
into branded sales, the number of silver andwhite stores
naturally decreases. In 2014, PANDORA jewellerywas
available in a total of 4,541 silver andwhite stores,
comparedwith 5,478 in 2013.
