Will Signet Jewelers rebound from disappointing holiday sales with strong Valentine’s Day business?
Report Available:February 27, 2017
Blueshift’s initial research shows SIG coming off a disappointing holiday that was weak across the industry. The company is hopeful for a Valentine’s Day rebound with a focus on online execution and sales of its branded collections. But overall spending is expected to be down from a year ago, leaving a SIG comeback in question.
- SIG reported a 6% drop in holiday sales, blaming its e-commerce platform for not being able to handle the high volume which led to results that were below expectations. A year ago the company saw a 5.1% increase in sales during the holidays. Weak sales across the jewelry industry, lower mall traffic, and a highly promotional environment were also cited for the decline, leading SIG to revise guidance down. TIF also endured a disappointing holiday season as sales fell 4% in the Americas, followed by the CEO’s resignation.
- Consumers are expected to spend $4.3 billion on jewelry for Valentine’s Day this year. Nearly 19% of celebrators plan to buy jewelry, and 9 million marriage proposals will be made. However, the $18.2 billion projected in overall spending is down from the estimated $19.7 billion spent a year ago, with the average consumer spending $10 less than last year.
- SIG is implementing changes to improve chances of Valentine’s Day sales success. The company is focused on its online technical execution, emphasizing branded collections like Ever Us which were a bright spot for the holidays, and redirecting media spending to improve online search results.
- Blueshift’s Jan. 5 report said SIG holiday sales were lackluster. Zales sources experienced the most disappointment, Kay Jewelers reported mixed results, and Jared had the most success during the holiday season. Traffic was strong in half the stores visited, but this did not translate into sales growth because customers spent less and chose cheaper items like gemstones, promise rings, and PNDORA jewelry. Bridal jewelry was not in great demand either.
How were Valentine’s Day sales? How did the branded collections perform? How were online sales? What were customers buying? How was customer spending? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Kay, Zales and Jared personnel.
Companies: Signet Jewelers Ltd. (SIG)
Research Begins: Feb. 13, 2017