UK
Signet has a range of advantages in store operations and human resources, real estate, merchandising and marketing compared to competitors within the UK speciality jewellery retail market and has access to leading US expertise. The principal competitive advantages are summarised below.
- Store operations and human resources
The division’s scale enables it to invest in industry-leading training, which is accredited by national and international industry bodies such as the National Association of Goldsmiths (NAG) and the International Gemmological Institute (IGI). This is particularly important, as the sale of diamond jewellery requires increased standards of product knowledge and customer service from sales associates. During 2006/07 the division’s watch training achieved recognition from the British Horological Institute. Also, in 2006/07 an enhanced training programme called Amazing Customer Experience (“ACE”) was introduced. - Real estate
Strict criteria are followed when evaluating real estate investment and management believes that the quality of its store portfolio is superior to that of many of its competitors. The strength of the Group’s balance sheet and the division’s trading record makes it an attractive tenant. The well-tested H.Samuel and Ernest Jones revised store formats, which are more suited to selling diamond jewellery, enables the division to increase market share in that category. - Merchandising
Management believes that the division’s leading position in the UK jewellery sector is a commercial advantage when sourcing merchandise and enables delivery of better value to the customer. An example of this is its capacity to contract with jewellery manufacturers to assemble products, utilising directly sourced gold and loose polished diamonds. In addition, the division has the scale to utilize sophisticated merchandising systems to test, track, forecast and respond to consumer preferences. - Marketing
The UK division has strong and well established brands and leverages them with advertising (television, print and online), catalogues and the development of customer relationship marketing techniques. Few of its competitors have sufficient scale to utilise these marketing methods successfully. H.Samuel and Ernest Jones also provide the leading integrated e-commerce and retail store service to the consumer within the speciality jewellery sector. - Access to US expertise
The UK business benefits from its close relationship with Signet’s US operations. Synergy is gained by sharing knowledge in all aspects of retail best practice procedures. None of the UK division’s competitors has similar access to the leading operator in the world’s largest jewellery market.