US Business Initiatives
Initiatives in 2006/07
Actions taken during 2006/07 to strengthen the Group’s competitive position included:
Store operations and human resources
- first phase of enhanced training system introduced;
- inclusion of customer satisfaction index in monitoring of store by store performance; and
- improved specialised jewellery repair training.
Real estate
- increased number of Jared openings by 39% to 25;
- accelerated expansion of Kay off-mall store format;
- testing of Kay stores in outlet centres; and
- introduction of a Kay superstore format in superior regional malls.
Merchandising
- rough diamond sourcing trial expanded;
- further development of the “right hand ring” category;
- continued expansion of Leo Diamond assortments;
- “Journey” diamond jewellery introduced in conjunction with a marketing initiative from the Diamond Trading Company;
- “Circle” jewellery range expanded
- a prestigious designer line, “Le Vian”, made available in all Kay locations;
- luxury timepiece selection increased within Jared stores; and
- the “Peerless Diamond” launched in all Jared locations.
Marketing
- an increase in national television advertising for Kay;
- national cable television advertising for Jared used for the first time in the fourth quarter of 2006/07;
- continued development of local television advertisements for JB Robinson; and
- the launch of an e-commerce capability for kay.com.
Initiatives for 2007/08
Initiatives and developments planned for 2007/08 include:
Store operations and human resources
- complete roll-out of enhanced training procedures;
- continued focus on overall customer experience;
- system and training enhancements to improve the repair service provided to customers;
- improvements to recruiting processes;
- roll-out of broadband communications infrastructure, and upgrade of internal store communications systems.
Real estate
- space increase planned at top end of 8% -10% target range;
- further acceleration in the number of Kay off-mall openings (up to 40 locations planned);
- continued testing of Kay in outlet centres;
- expansion in the number of Kay superstores; and
- maintain the planned level of Jared openings in the range of 20-25 stores per annum.
Merchandising
- further development of rough diamond sourcing capability;
- expansion of the direct importing of merchandise;
- evolution of “Journey” assortments;
- continued expansion of Leo Diamond range; and
- development of the Peerless Diamond range in Jared.
Marketing
- further growth in Kay television advertising;
- Jared is expected to move to national network television advertising for Christmas 2007;
- continued development of JB Robinson television commercials; and
- enhancement of the Kay website.