Competitive Advantages
| US | UK |
Management attributes the division’s success to a range of competitive advantages in customer service, human resources, merchandising, marketing, real estate and credit operations. These advantages are reflected in above industry average sales per store and operating profit margin. The principal competitive advantages are summarised below, and are explained in greater detail in this section of the website.
Store operations and human resources
The ability of the sales associate to explain the merchandise and its value is essential to most jewelry purchases
- Centrally prepared training schedules and materials are used by all stores and help ensure a consistently high level of customer service
- All store managers are required to be trained diamontologists, so as to provide expert knowledge to customers
- The US division employs over 5,000 trained diamontologists
- Measurable daily store standards provide staff with clear performance targets
- Each store receives a monthly customer experience report helping to identify opportunities to improve customer service
Merchandising
Offering the consumer greater value and selection
- Leading supply chain capability among middle market specialty jewelers provides better value to the customer
- Each store is merchandised on an individual basis so as to provide appropriate selection
- Highly responsive demand-driven merchandise systems enable swifter response to changes in customer behaviour
- 24 hour re-supply capability means the item wanted by the customer is more likely to be in stock
Marketing
Leading brands in middle market sector
- Largest marketing budget in specialty jewelry sector allowing more advertisement impressions than competitors
- Kay and Jared are able to achieve leverage through national television advertising
- A proprietry marketing database of over 25 million names provides significant opportunities for customer relationship marketing
Real estate
Well designed stores in primary locations with high visibility and traffic flows
- The consistent application over time of strict real estate criteria has resulted in a high-quality store base
- Well tested formats and locations reduce the risk of investing in new stores
- The Group’s high store productivity and financial strength make Signet an attractive tenant for landlords
Credit operations
Ability to facilitate customer transactions
- About 50% of sales utilize in-house credit
- Dedicated, proprietary scoring cards more accurately reflect Signet’s customer than a typical third party scorecard
- Manage credit in the context of our business rather than by a third party’s priorities
Signet has a range of advantages in store operations and human resources, merchandising, marketing and real estate, compared to competitors within the UK specialty jewelry retail market and has access to leading US expertise. The principal competitive advantages are summarised below.
Store operations and human resources
The ability of the sales associate to explain the merchandise and its value is essential to most jewelry purchases
- Industry-leading training, with third party accreditation, helps staff provide good customer service
- 93% of store management have passed the Jewellery Education and Training Course 1 accredited by the National Association of Goldsmiths, demonstrating professionalism of staff
- Management trained to support enhanced sales associate development programs and build general management skills
- Commission based compensation program developed to improve recruitment and retention of top quality staff
Merchandising
Consumer offered greater value and selection
- Leading supply chain capability in the UK jewelry sector, which provides better value to the customer
- Responsive demand-driven merchandise systems to enable swifter response to changes in customer behavior
- Scale to offer exclusive products improves differentiation from competitors
- 24 hour re-supply capability means items wanted by customers are more likely to be in stock
Marketing
Leading brands in middle market sector
- Ability to leverage brand perception through scale of marketing spend
- Leading integrated e-commerce and retail store service within the specialty jewelry sector
- Marketing database of over 14 million names enables extensive customer relationship marketing
Real estate
Well designed stores in primary locations with high visibility and traffic flows
- Strict real estate criteria consistently applied over time has resulted in a high-quality store base
- Revised store format, more suited to selling diamonds, fine jewelry and watches
- Attractive tenant to landlords