Signet Jewelers Hit All Cylinders During Holiday 2021, Boosting Sales by 30%
Signet Jewelers, the nation’s largest jeweler and parent to Kay, Zales, Jared, Banter by Piercing Pagoda, James Allen, Diamonds Direct and others, has just announced that its November-December 2021 holiday retail sales broke company records. Revenue rose 30% from a year ago and 33% from two years ago to $2.4 billion.
Unfortunately, the Census Department is still processing detailed data, so we don’t have definitive jewelry retail numbers to compare Signet’s performance, but it’s safe to guess that Signet’s holiday performance will exceed the category as a whole. As strong as the 2021 holidays were – retail sales overall increased 14.1% in the two-month period –Signet is expected to significantly outpace the jewelry retail category as a whole.
Not only is Signet the largest jewelry retailer in the United States, but CEO Gina Drosos is proud to say, “Our company leads the industry in innovation. That’s why we’re the category leader, not just because of our size, but also because we’re the best: we have the best people, the best products, and the best capabilities. »
She has the numbers to back up those claims. Online sales of Signet in the United States increased by 18% compared to last year and by 85% compared to two years ago. Bricks and mortar sales were up 34% from a year ago and 25% from two years ago. Average deal value increased 16%, with total deals up 8% year-on-year.
Throughout the past year, Drosos and his team have implemented a transformation plan called “Inspiring Brilliance” and it is now paying off, not only attracting new customers and engaging old ones, but inspiring the brilliance among the company’s 26,000 employees.
“The biggest part of our transformation is our cultural transformation,” she explains. “This is how we are preparing to be a company of the future. Our focus on celebrating life and expressing love has been galvanizing for our teams.
The company has also taken concrete steps to continue its cultural transformation by increasing the company’s minimum wage, improving its benefits package at no additional cost to employees, and improving the work environment. And it was lucky to attract new talent at all levels in 2021 as other retailers lost it.
“We just received an employee survey and saw that our team is at an unprecedented level of engagement,” she shares. “I always think of retail from the store or the website. The customer’s shopping experience is our moment of truth.
Considering the many challenges of operating a retail store during Covid, let alone 2,800 of them, the company’s team exceeded expectations. For example, in addition to the corporate distribution center, front-line store staff may be called upon to pull and ship e-commerce orders from the stock store, as well as deliver curbside orders. Street.
“We had excellent deliveries this year, with more than 97% of our orders received on or before the promised date,” says Drosos. She also shares that UPS, her primary supplier, has found Signet’s shipping and delivery performance to be among the best in the retail industry.
It should also be noted that Signet trained cross-selling salespeople for all brands, which kept stores operating as planned despite Omicron.
“We have had store closures due to illness, so if a Kay store were to be closed, a team from a nearby Zales could keep the store open. It was a team effort from start to finish,” she exclaims.
And leveraging technology, each store can adjust employee schedules to ensure it has enough staff to serve customers when and where they are needed. Besides managing staff, its connected commerce capabilities also manage inventory at the store level.
“It has dramatically improved inventory turns. This year customers have found over 30% more new items in our stores than just a year ago and our products are trendier so they turn faster as well,” says Drosos.
With two-thirds of its fourth quarter already in the rearview mirror, the company expects to end the year with $7.8 billion in revenue, up nearly 50% from a year earlier and 27 % above $6.1 billion in 2019. Its expectations include revenue from Diamonds Direct, a 22-store regional chain it closed in mid-November 2021.
And just after the fourth quarter closes, Signet looks forward to its next big holiday: Valentine’s Day. Drosos sees the wedding boom looming for 2022 will continue to bring engaged couples to its stores for engagement and wedding jewelry.
She also notes a trend in Valentine’s Day gifts emerging from the past two years’ experience under Covid that will be good for business.
“Historically, Valentine’s Day has been more for couples early in their relationship, whether they’re dating or just engaged,” she shares. “But last year we saw a lot of husbands coming in to buy something really special for their wives and at higher prices. And husbands tend to shop a little earlier in the cycle than those who are just out together and shop more at the last minute.
Whether or not the current rapid growth rate of the jewelry market continues, Drosos is confident that Signet is well positioned to continue moving forward.
“Our mission to inspire love is something customers care about. People will always want to celebrate with the ones they love and jewelry is one of those categories that has lasting value,” she says and concludes “We’ve made great strides in building competitive advantages and I think we’ve barely scratched the surface of what we can become.