US Overview
Signet’s US division is the largest speciality retail jeweller in the US with an approximate 8.8% (2006: 8.8%) share of the speciality jewellery market. It has also been the largest speciality retail jeweller in North America since 2006. Total sales in 2007/08 were $2,705.7 million (2006/07: $2,652.1 million), being 74% of Group sales (2006/07: 75%).
The division targets the middle market through Kay Jewelers (“Kay”), which trades nationwide in malls and, increasingly, in outdoor shopping centres. Kay is the largest speciality retail jewellery brand in the US and accounted for 41% of Group sales (2006/07: 42%). The division also targets the middle market sector through a number of well established and recognised regional brands trading in malls. The regional stores amounted to 12% (2006/07: 14%) of Group sales.
The division’s off-mall destination superstores target the upper middle market and trade as Jared The Galleria Of Jewelry (“Jared”). The 154 stores are equivalent in space terms to over 600 of the Group’s mall stores. Jared, which accounts for 21% of Group sales (2006/07: 19%), became the fourth largest US speciality retail jeweller by revenue in 2006/07. It is by far the largest chain of middle market off-mall destination jewellery stores and the only one with national coverage. As a destination store Jared offers a wider selection of merchandise than mall stores at highly competitive prices.
Over the longer term, the division’s aim is to gain further profitable market share through like for like sales growth by focusing on proven competitive advantages. It aims also to increase US net store space by between 8% – 10% per annum, with Jared accounting for the majority of the planned space growth. In 2008/09 and 2009/2010 net store space is expected to increase by about 5% per annum.
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US Like for Like Sales, % |
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US Operating Profit, $m |
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US Performance |
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US Performance |
*53 week year