Signet Jewelers is expanding its rental offering with the launch of a new program that targets shoppers looking for affordable and fine jewelry options for special events such as weddings.
The program, which is being made available at the company’s Zales stores across 50 markets, enables shoppers to explore various jewelry options online using a digital lookbook before they show up for their appointment.
Signet is leveraging Rocksbox’s rental technology to support its fine jewelry rental program. The company acquired Rocksbox, a jewelry rental startup, in 2021 with the intention of broadening its range of offerings beyond the 2,800 stores predominantly located in malls.
Additionally, Signet made another strategic move last year by acquiring the direct-to-consumer (DTC) player Blue Nile for $360 million. This acquisition aimed to bolster its online presence and cater to a younger audience, further enhancing its growth in the digital marketplace.
As the company explores new avenues to connect with customers, it is also grappling with declining sales. During its latest quarter, sales experienced a significant drop of 9.3% compared to the previous year, and same-store sales saw a decline of nearly 14%. Due to the effects of macroeconomic factors on consumer spending and a notable shift in consumer discretionary spending, the company has revised its outlook downward.
During a call with analysts in June 2023, Signet’s CEO Gina Drosos revealed the company’s ambitious plan to double its cost savings strategies, aiming to achieve between $225 million and $250 million in savings. As part of this strategy, the company intends to close up to 150 stores over the upcoming year. The decision for store closures was attributed to their failure to meet the company’s productivity expectations, making it a necessary step in the company’s pursuit of increased efficiency and optimization.
Signet, known as the world’s largest retailer of diamond jewelry, boasts ownership of several well-known companies, including Kay Jewelers, Jared, Diamonds Direct, and Peoples, among others.