Jewelry online

Signet’s Switch to Online Jewelry Selling Bets for the Holidays: CEO

Signet Jewelers, a giant in the diamond industry, had a breakout quarter for its online business last quarter thanks to investments made to reach customers through different channels.

The jeweler, as part of its transformation strategy, has closed hundreds of physical stores over the past year and placed more emphasis on its web services, driving a 60% increase in online sales during the period. holidays, CEO Gina Drosos told CNBC’s Jim Cramer Thursday.

Shares of the retailer were up 6% in the session after the release of preliminary results, including same-store sales growth of 5.6%, compared to the nine-week period ending Jan. 2.

“Our team has done an amazing job bringing new technology so that we can unlock online jewelry selling,” Drosos said in a “Mad Money” interview.

Total sales for the holiday season were $ 1.8 billion, roughly the same as a year ago, the company said in a press release.

As part of its ‘Path to Brilliance’ transformation over the past three years, Signet, which owns brands such as Kay, Jared, Piercing Pagoda and Peoples, has spent money on data and analytics to deliver an experience. online to jewelry buyers.

Jewelry retailing was among the last in the retail industry to adopt a strong web presence.

Signet has boosted its internet browsing and viewing capabilities, providing a way for customers to build a relationship with hundreds of online sellers and review products before they buy, Drosos explained.

“We can chat with people online, we have AI on all of our information online, but we also have people. We have 700 virtual sellers who can help them,” she said. “We are now showing our jewelry in a way that helps customers understand how big it is, what it will look like, will it be fair? “

While Signet’s online presence remains nascent, the digital approach also opens up new fulfillment opportunities for the company, Drosos added, including launching in-store pickup for online orders last October.

“It was the big driver of our vacation period,” she said.

As the company deepens its data and analytics to target and sell to customers, Signet has reduced its footprint. Signet had fewer than 2,900 physical stores at the start of January, reflecting a 4% reduction in its number of stores. In the fiscal year that ended Jan. 2, the company closed 355 of 380 sites it planned to close, despite the coronavirus pandemic, as part of its transformation plan.

Signet has moved away from low-traffic malls, emphasizing an off-mall approach that includes areas with more robust traffic and sales profiles, Drosos said.

“We have now mapped the country and looked at where the jewelers should be… and we see an opportunity for that also in the times to come,” she said.

Signet shares closed at $ 41.39 on Thursday, up nearly 52% from the start of the year. In 2020, the stock rose by more than 25%.


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