UK Overview

Signet is the largest specialty retailer of fine jewelry in the UK, with 558 stores and a total market share of approximately 10% (calendar 2007 10%). It trades as H.Samuel (13% of Group sales), targeting the middle market, and Ernest Jones (11% of Group sales), positioned at the upper end of the middle market. Total sales during fiscal 2009 were £461.8 million, H.Samuel’s sales were £250.3 million (fiscal 2008: £256.7 million) and Ernest Jones’ £208.3 million (fiscal 2008: £219.4 million).

At January 31 2009 there were 352 H.Samuel stores and 206 Ernest Jones stores (including 15 Leslie Davis stores). Approximately 56% of these are in covered or enclosed shopping malls and 44% are located in prime “High Streets” (main shopping streets with high pedestrian traffic). Mall stores accounted for 59% of total UK division sales. H.Samuel is the largest chain of specialty retail jewelrs in the UK and its stores are located in virtually every medium and large retail center. Ernest Jones, the UK’s second largest specialty retail jewelry chain, is represented in most large retail centers.

The strategy in the UK is, over time, to increase average transaction value by focusing on merchandise where the division’s competitive advantages are greatest, particularly diamond jewelry and watches, thereby improving store productivity and achieving operational leverage. To achieve this, the division has an integrated series of initiatives in the key areas of retail execution to continue the improvement of customer service, merchandising, marketing and real estate.