Signet Jewelers is the parent company to the Jared, Kay, and Zales Jewelry chains. They own 2,800 jewelry stores across North America, and like many retailers, suffered record losses due to the mandatory closures.
Today the company announced that they’ll be permanently closing 380 stores. At least 150 stores in North America and 80 stores in the U.K. will shut down. They are in the process of landlord negotiations, which will play a factor in the remaining 150 stores they plan to close this year.
Each of Signet’s 2,800 stores in North America was shut down in March due to the coronavirus closures. In April, the company began furloughing employees from their retail locations, as well as, their support centers.
Last quarter the company reported losses of nearly 40% plummeting sales to $852 million compared to 1.4 billion in the previous year. Although their online sales rose by 6.7%, it wasn’t enough to counter the impact made by the store closures.
Since the shutdown, they’ve expanded their digital efforts. They added live consultations for consumers shopping from home, as well as, national trunk shows for those wanting custom jewelry.
As the economy begins to re-open, so are the Signet jewelry stores. They’ve now opened more than 1,100 of their 2,800 U.S. stores over the past six weeks. About a quarter of their stores are still only offering curbside pickup.
Due to safety concerns, the jeweler is now cleansing jewelry before and after consumers handle them. Workers are also wearing masks, and gloves when needed.
Jewelry stores have long been a welcomed staple at malls across the country. Of the 150 U.S. stores already identified to close, instead of holding liquidation sales, they simply will not re-open – even as mandatory closing restrictions are lifted.
The company ended the past quarter with $1.3 billion in debt and holds about $2.4 billion in inventory. In an effort to soften the losses they have reduced capital expenditures and operating expenses, along with prioritizing clearance sales to help manage inventory.
While you won’t find going out of business sales, you can expect to see more clearance merchandise at the jewelers that re-open. Kay Jewelers is currently having a clearance sale that will save you 30-50%, along with an additional 15% savings when you use code 15CLEARANCE.
Zales is also giving an extra 20% off select items from their clearance inventory. Some items are already marked down by as much as 50% off. Although Christmas is generally the best time to save on jewelry, you can celebrate early with these extraordinary savings.