Signet, owner of Kay, Jared and Zales retail brands is closing down 150 stores, following the ceasement of stores in 262 locations. The aggresive downsizing is part of Signet's 3-year plan to reduce its retail footprint by 13 per cent.
In the wake of this, Signet's President Sebastian Hobbs who served the company since 2011 resigned according to a Signet SEC filling.
Due to prolonged lacklustre financial results the plan to downsize has come into play - by 2020 Signet would've reduced its retail footprint by 13 per cent. Stores will be opened in the future with more caution primarily in off-mall locations.
The company sited consumer weakness in the U.K. and very low holiday sales for its financial slump. Virginia Drosos, CEO, said in a statement, "We did not finish the year as strongly as expected due to a highly competitive promotional environment, continued consumer weakness in the UK, and lower than expected customer demand for legacy merchandise collections that impacted our holiday fourth quarter results."
Signet intends to accelerate its initiatives to further develop the seamless and personalized OmniChannel jewellery experience including reinvigorating their product assortment in-store and online with more exclusive pieces and customization;increasing targeted messaging and promotional effectiveness; improving their eCommerce and mobile technology; and enhancing full service offerings like repairs and piercings.
Higher levels of investment in these growth initiatives are expected to be funded by aggressively addressing their cost structure and more efficiently managing their inventory. The company expects these initiatives to improve the trajectory of their same store sales, operating margins and cash flow generation, and to bolster ther balance sheet over the course of our multi-year transformation journey