US Overview

Signet’s US division is the largest specialty retail jeweler in the US with a provisional 8.8% (fiscal 2008: 8.8%) share of the specialty jewelry market. It has also been the largest specialty retail jeweler in North America since 2006. Total sales in fiscal 2009 were $2,536.1 million (fiscal 2008: $2,705.7 million), being 76% of Group sales (fiscal 2008: 74%).

The division targets the middle market through Kay Jewelers (“Kay”), which trades nationwide in malls and, increasingly, in outdoor shopping centres. Kay is the largest specialty retail jewelry brand in the US and accounted for 43% of Group sales (fiscal 2008: 41%). The division also targets the middle market sector through a number of well established and recognised regional brands trading in malls. The regional stores amounted to 11% (fiscal 2008: 12%) of Group sales.

The division’s off-mall destination superstores target the upper middle market and trade as Jared The Galleria Of Jewelry (“Jared”). The 171 stores are equivalent in space terms to nearly 700 of the Group’s mall stores. Jared, which accounted for 22% of Group sales (fiscal 2008: 21%), became the fourth largest US specialty retail jeweler by revenue in fiscal 2007. It is by far the largest chain of middle market off-mall destination jewelry stores and the only one with national coverage. As a destination store Jared offers a wider selection of merchandise than mall stores at highly competitive prices.

Operating structure
While the US division operates under 12 different brands, many functions are integrated to gain economies of scale. For example, store operations have a separate dedicated field management team for the mall brands, Jared and the in-store repair function, while there is a combined diamond sourcing function.