Dive Brief:
- Signet Jewelers on Tuesday announced the launch of a new fine jewelry rental program across two of its banners — Zales and Rocksbox. The program is tailored to offer shoppers affordable fine jewelry options for special occasions including weddings.
- The rental program is available by appointment at select Zales stores in 50 markets, according to a company press release. Shoppers will be able to browse an assortment of jewelry online ahead of their appointment through a digital lookbook, according to the company.
- The Zales x Rocksbox Fine Jewelry Rental program has its own assortment that was designed exclusively for rental.
Dive Insight:
The partnership between Rocksbox and Zales is a first across Signet’s banners.
“The Zales x Rocksbox Fine Jewelry Rental program is a milestone launch as we come together with Rocksbox to offer customers a try-before-you-buy rental experience coupled with the fine jewelry that our Statement Maker customers have come to expect from Zales, offering them additional opportunities to fully express themselves and capture their dream look,” Kecia Caffie, president of Zales, said in a statement. “This pilot program is also a part of our overall strategy to evolve our customers' personalized shopping experiences.”
Signet is utilizing Rocksbox’s tech to power Zales x Rocksbox. The parent company acquired the jewelry rental startup in 2021 as a means to expand its offerings beyond its largely mall-based fleet of 2,800 stores. Last year Signet also purchased DTC player Blue Nile for $360 million as another means to grow its online efforts while appealing to a younger demographic.
While the company is delivering means of reaching customers through new channels, it is also facing decreasing sales. In its latest quarter sales dropped 9.3% year over year, while same-store sales declined nearly 14%. The company lowered its outlook based on the “impacts of macroeconomic factors on consumer spending and continued shift of consumer discretionary spend.”
"We built our fortressed balance sheet to strategically invest during periods of disruption,” Joan Hilson, chief financial, strategy and services officer, said in a statement regarding the company’s first quarter financial results. “Our growing capabilities enable Signet to navigate this challenging macro environment, position us for success when the bridal recovery begins, and maintain strong margins while continuing to return capital to shareholders."
Signet CEO Gina Drosos said on a call to analysts in June that the company was doubling its cost savings strategies from $100 million to between $225 million to $250 million. That includes closing up to 150 stores over the next year that are not “meeting our expectations for productivity,” Drosos said.
Signet, which describes itself as the world’s largest retailer of diamond jewelry, also owns Kay Jewelers, Jared, Diamonds Direct and Peoples, among other companies.
