Dive Brief:
- Kay Jewelers is updating its brand to target the next generation of shoppers, including through new products, a fresh brand campaign and updates to its store footprint, the company said Tuesday in a press release. The company’s new brand positioning will focus on presenting authentic relationships.
- A new collection, Studio By Kay, will be available online and at select stores starting Oct. 28. It will offer more than 30 “fresh, luxurious designs that enhance everyday looks,” the company said. Prices for pieces in the collection, which includes stackable rings and hoop earrings, will range from $199 to $2,199.
- Kay’s store revamps, which will take place over this year and next, will include integrated technology and a dedicated customization and collaboration area that will enable the retailer to offer personalized, full-service experiences. The stores will be able to host wedding parties, friends and other groups.
Dive Insight:
Kay Jewelers, which is part of the Signet Jewelers portfolio, appears to be joining the wave of retailers vying for the attention of Gen Z shoppers.
The company’s new campaign kicking off its brand evolution will include a presence across TV, online video, social media and search channels. Recent surveys indicate social media is especially important as the medium has a major influence on product discovery and buying behavior for Gen Z consumers.
Kay Jewelers President Bill Brace said the retailer wants to celebrate the messiness and authenticity of love and relationships as part of its brand story and evolution. “We’ve always been a jewelry brand for everyone, but we want to be the jewelry brand for you and your unique love stories,” Brace said.
Last week, Kay also announced a collaboration with designer Monique Lhuillier to expand Kay’s Monique Lhuillier Bliss collection with an offering of colored lab-grown diamond engagement rings. The expanded collection of 12 rings features pink, blue and yellow diamonds set in 18 karat gold.
The store footprint update will initially include opening eight new shops, adding to Kay’s current 1,000-plus store footprint. Overall, the company said it’s investing $60 million into the store modernization initiative.
Signet CEO Virginia Drosos said during an earnings call earlier this month that Kay plans to renovate over 200 stores this year, while at Jared, the company has invested in both the fleet and advancing its assortment to a higher tier, which drove fashion average transaction value up nearly double digits for the second quarter. Drosos said that the company is leveraging AI to personalize messaging and it’s also launching new digital features, like self-learning search on websites that will curate results and serve consumers the most relevant products.
Signet reported Q2 sales of $1.5 billion, down 7.6% year over year. Same-store sales also fell in the quarter, down 3.4% compared to the prior year. The company posted an operating loss of nearly $101 million, down from operating income of $90.2 million the prior year.
Signet’s brand portfolio also includes Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, James Allen, Rocksbox, Peoples Jewellers, H. Samuel and Ernest Jones. Overall, Signet operates 2,700 stores globally.
Editor’s note: This story has been updated with additional details from Kay Jewelers.
