Big Box Chain Retailers
375 Ghent Road
Akron, Ohio 44333
Chief Executive Officer (CEO) and Director: Mike Barnes
CEO of Signet’s U.S. division: Mark Light
Fiscal 2013 U.S. Sales: $3.27 billion
Fiscal 2013 U.S. and U.K. Profit: $359.9 million
Advertising increased to $224.3 million in fiscal 2013 from $188.4 million the previous fiscal year.
Signet Jewelers Limited (Signet) is a retail jewelry and watch company with divisions in the U.S. and U.K. In the U.S., its most-well-known outlets are Kay Jewelers and Jared The Galleria of Jewelry, though it also operates a number of outlets and regional brands, trade names and trademarks.
These include JB Robinson Jewelers, Marks & Morgan Jewelers, Belden Jewelers, Shaw’s Jewelers, Osterman Jewelers, Weisfield Jewelers, LeRoy’s Jewelers, Rogers Jewelers, Goodman Jewelers, Friedlander’s Jewelers, Every kiss begins with Kay, the Leo Diamond, Peerless Diamond, Hearts Desire, Perfect Partner and Charmed Memories.
Signet also purchased U.S jewelry retailer Ultra Diamonds in October 2012, adding Ultra Gold, Ultra Diamond Outlet, Ultra Diamond & Gold Outlet, Premier Fine Jewelry and Scamp & Scoundrel to its U.S. division.
Signet’s U.K division is made up of H. Samuel, Ernest Jones, Leslie Davis, Forever Diamonds and Perfect Partner outlets.
As of February 2, 2013, Signet’s U.S. division operated 1,443 stores in all 50 states, while its U.K division operated 511 stores, including 13 stores in the Republic of Ireland. The majority of Signet’s sales — 82 percent — came from its U.S. stores, while its U.K division garnered 18 percent of sales. While the majority of Signet’s outlets focus on middle-market consumers, a few, like Jared The Galleria of Jewelry and Ernest Jones, target more upper-middle-market consumers.
Around 49 percent of Signet’s fiscal 2013 sales came from its Kay Jeweler stores, while 25 percent came from Jared The Galleria of Jewelry, 10 percent from H. Samuel and 8 percent from Ernest Jones.
Discussing the future of the company, CEO Barnes noted that Signet’s strategic imperatives are to “develop and train our team members to consistently enhance the retail experience of our customers; grow and develop new and existing brands and categories to delight customers; drive competitive strengths and infrastructure to enable this growth; optimize the capital structure to manage risk and make investments to drive long-term shareholder value, and increase market share and maximize sustainable profit levels.”
In its U.S. division, diamonds and diamond jewelry accounted for 74 percent of sales for the fiscal year, while gold and silver jewelry accounted for 11 percent, other jewelry items accounted for 9 percent and watches accounted for 6 percent. Bridal jewelry, which includes engagement, wedding and anniversary purchases, accounted for around 50 percent of the company’s fiscal year sales in its U.S. stores. The average transaction value for Signet’s Kay Jewelers was $368, while the average transaction value for Jared The Galleria of Jewelry was $544.
In Signet’s U.K. stores, the most popular items were watches, which accounted for 33 percent of total sales for the fiscal year. Diamonds and diamond jewelry accounted for 28 percent, followed by gold and silver jewelry at 20 percent and other jewelry at 13 percent. Bridal jewelry accounted for around 25 percent of all sales in the company’s U.K. stores. Ernest Jones had the highest average transaction value for the year at $375, followed by H. Samuel with an average of $98 per transaction.
Signet mandates that its suppliers adhere to Kimberley Process standards, and requires Kimberley Process Certification Scheme certificates for all diamond and jewelry supplies. The company also requires warranties from each of its suppliers that guarantee they are in compliance with all international laws and that their materials are conflict-free to the best of their knowledge.
Article from the Rapaport Magazine - June 2013. To subscribe click here.