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Leading jewelry retailer Signet Jewelers Limited SIG looks for ways to boost guests’ experience. In the latest developments, the company has bought Rocksbox — a jewelry rental subscription service — which is likely to expedite the former’s online service offerings. This buyout is in sync with the Signet’s latest Inspiring Brilliance strategy and will pace up growth in the services category. Through the acquisition of Rocksbox, the company will be able to reach out to self-purchasing women customers – a space where it is presently under-developed.
Launched in 2012, Rocksbox offers a monthly subscription to its members, allowing them to rent and swap designer jewelry styles via the online platform. Rocksbox offers trending jewelry at an affordable price. Signet boasts of renowned banners like Kay, Zales, Jared, Peoples, jamesallen.com, H. Samuel, Ernest Jones and Piercing Pagoda, and impressively, the latest buyout can further fortify its position in the jewelry space.
Incidentally, Signet is quite focused on accelerating its Services business as part of its Inspiring Brilliance initiative. Management looks to take up services like repair, warranty and piercings, and simultaneously bring new ones. Hence, the jewelry rental subscription will aid the company to efficiently cater to a highly engaged customer base while generating an additional revenue stream and driving connected-commerce strategy.
Last month, Signet informed that it has entered into the next phase of its growth strategy — Inspiring Brilliance – following the successful execution of Path to Brilliance plan. The latest strategy focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce, amongst others. As part of the Inspiring Brilliance growth strategy, the company will make use of data-driven insights for targeting new and existing customers. It is working toward evolving its customer-first strategy to a consumer-inspired experience, which includes tailored merchandise assortments and expanded services with more innovative and personalized experiences.
Meanwhile, Signet also plans to boost its omni-channel capabilities by focusing on improved connection between its physical and digital footprints. The Inspiring Brilliance growth strategy also includes transformational productivity, as part of which the company expects to achieve efficiencies in both gross margin, and selling, general and administrative expenses. Furthermore, this Zacks Rank #3 (Hold) will carry on its store portfolio-optimization efforts, which include transitioning to off-mall formats.
Impressively, Signet’s shares have surged 105.2% over the past three months and surpassed its industry’s 100% rally.
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