Signet Jewelers To Acquire Zale For $1.4 Billion
By Anna Rose Welch, Editorial & Community Director, Advancing RNA
Both omni-channel retailers work to lure customers with a little sparkle whenever, wherever
On Wednesday, Signet Jewelers, parent company to jewelers Kay and Jared, announced it will acquire Zale Corporation. As a part of the definitive agreement, Signet would acquire all issued and outstanding Zale stock for $21.00 per share. Signet CEO Mike Barnes says, “The addition of Zale to the Signet family is consistent with our long-term growth strategy and leverages our combined operating expertise to create better choices for our customers, new opportunities for our employees, and makes us a more attractive partner to our vendors.” Zale will continue to operate under the leadership of its current CEO, Theo Killion, who said that this deal will help Zales to “accelerate” its performance in the future for all its customers.
Over the past several years, both companies have been working independently to create an omni-channel retail experience for their customers. Back in 2011, Zales hoped to capture the attention of mobile users when it launched its first m-commerce site. The goal was to create a place for consumers looking to browse or buy while on the go. As a Zales spokeswoman said, “Zales sees the mobile site as a bridge between our stores and our website that consumers can use while on the go.” Like a majority of retailers today, the jewelry company hoped this mobile site would to enable customers to shop whenever and wherever. Even more recently however, the company signed on with Alliance Data Systems, which will be providing private label credit card services for Zales, as well as omni-channel marketing tools to reach those browsing or shopping on the increasingly important tablet and mobile devices.
Signet has also been concerned with capturing its own share of online shoppers and, like its new acquisition Zales, has been busy trying to figure out how to engage customers in an increasingly digital world. Last spring, Signet partnered up with IBM Interactive in order to conduct consumer segmentation analysis, voice-of-the-customer surveys, and in-store observations. Following these procedures, Signet began profiles on Facebook and Twitter and launched new mobile sites and redesigned websites for its two brands Kay and Jared. These new sites in particular were the company’s attempt at providing customers with a personal, in-store experience while they were online. Customers were able to talk with sales associates, compare items side-by-side, and view their available credit balance. It would seem that these new enhancements have been working. After the holidays, Signet announced that it saw its U.S. division’s e-commerce sales increase by roughly 25 percent.
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