How the Largest Jeweler in the US Is Preparing for Life Beyond the Mall

Despite the fact it is the largest jewelry retailer in the U.S. and the largest diamond purveyor in the world, Signet is not a household name like its smaller domestic rival Tiffany & Co. But consumers are likely familiar with one of its many brands, perhaps because they've heard taglines like, "Every kiss begins with Kay," or, "He went to Jared." Signet, in fact, has fairly expansive holdings, operating banners Zales, Banter by Piercing Pagoda, JamesAllen.com, H.Samuel, Ernest Jones, Rocksbox and Peoples, in addition to Kay Jewelers and Jared, generating billions in sales annually at more than 2,800 locations. Like so many retailers in fashion, particularly those whose sales rely heavily on special occasions such as weddings, Signet's sales took the other kind of plunge during the Covid-19 pandemic. Could You be Curated by Kohl’s? The Retailer Wants to be Your Digital Personal Shopper Sales fell 14.8% year over year for the fiscal year ended Jan. 30 to about $5.23 billion from approximately $6.14 billion. Doubling sales But Signet, once heavily reliant on its mall-based stores, is undergoing a digital transformation it calls "Inspiring Brilliance" that is already paying dividends. Sales for the second quarter ended July 31 were close to $1.8 billion, nearly double the almost $900 million generated during the same period a year prior. Granted, the retailer is benefitting from trends like the resumption of weddings, the willingness of shoppers to spend more on average per item and more consumers purchasing jewelry for their own pleasure. Signet, however, isn't relying solely on the attitudes of consumers, introducing a host of new technologies and services, while differentiating its banners from one another. "If you think about [the first quarter], which ended at the end of April for us, our total sales were $1.7 billion. That was an increase of more than $250 million compared to Q1 two years ago," Jamie Singleton, Signet's president, told Adweek. "And we had 467 more stores two years ago than we have today. So what that tells you is that same store sales were up 106% year over year ... and gives illustration to how customers are shopping differently." Ramping up services Sometimes it's better to buy it than build it. When Signet bought jewelry subscription service Rocksbox in April, for example, the idea was to give the company access to a new generation of shoppers and to attract "self-purchasing" customers. "We're striving to reach $9 billion in revenue in the coming years. And that's from the roughly $6 billion that was communicated in our fiscal 2022 guidance. So we're expecting two-thirds of that revenue goal to come from winning in our biggest brands," Singleton said. "We expect another third of that to come from accelerating services. So that's repair and custom. And then further expanding into other categories and business segments, like Rocksbox." Signet has begun providing capabilities such as virtual try-on at Jared, for example, to boost conversion. It has also rolled out Google Business Messages and Apple Business Chat so customers could virtually connect with jewelry consultants. In the first quarter of this year alone the company said it had some 450,000 virtual interactions. And to fend off competition from startups such as Gemist, which allow consumers to design their own jewelry, the retail group is now giving customers the option of customizing or personalizing their own pieces. "It really comes back to the seamless integration between the different channels, from the website to the virtual jewelry consultants to our stores. It gives our customers multiple ways to shop with us and do it on their own terms," Singleton said. The result? "Our ecommerce was up 110% in the first quarter year over year and we continue to see our conversion increasing," she said. Differentiating its brands When a conglomerate operates as many businesses as Signet does, a top priority should be distinguishing between brands so they do not cannibalize sales. Signet achieves this by targeting specific consumer segments with each brand via merchandise assortment and pricing. Zales' new customers are more likely to purchase jewelry for themselves, while shoppers at Kay, who Signet calls the "generous sentimentalist," are more likely to be seeking gifts for milestone occasions including birthdays, anniversaries and holidays. Product assortment, therefore, tends to fall along similar lines with Kay offering engagement rings with large center stones, fancy cuts and brand names such as Neil Lane. Zales, on the other hand, began exclusively selling the Serena line of jewelry by tennis champion Serena Williams, which in addition to Disney Enchnated-inspired pieces and Vera Wang-branded products, offers customers the kind of individual style they may be looking for to express themselves. Signet's aim of differentiating its banners can best be seen in its reinvention of Piercing Pagoda, a 50-year-old brand and mall-based mainstay that once lured customers with on-site ear piercings. Signet renamed it Banter by Piercing Pagoda to reflect the more intimate relationship between the banner and its customers. It is now focusing on chains, charms, necklaces and earrings that are gender neutral and sold at affordable prices. Banter also added new services, including facial and nose piercings, as well as virtual follow-up appointments for piercings and styling sessions. The Piercing Pagoda brand is important as Signet aims to use its scale to provide the kind of experience and product that wouldn't be affordable at its competitors. "That's a customer that's always up front. They want to put things together in a way that really expresses who they are. They're not a traditional customer. It's a customer that really wants to make a statement about themselves," Singleton said. "So being able to look at our customers within those frameworks of their preferences and personality helps us be able to differentiate the brands."