Jewelry retailers, Signet Jewelers, Zales, Costco, Sam’s Club, Target, and Wal-Mart are some of the biggest retail sellers in the country. Offering a large variety of products that range from hardware supplies to custom jewelry. Recently, sales have accounted for around than 10 percent of annual sales for most of these retail giants. Demonstrating a compelling force in the jewelry industry. Wide reach and physical presence in most major malls and towns across the U.S. is not the only factor but also their ability to attract a wide range of buyers. Affluent consumers, defined as those with annual average household income over $285,000 by The American Affluence Research Center in the 22nd Fall Affluent Market Tracking Study which was released in October 2012, who are generally price-conscious picked Costco and Target as their top retailers of choice with 68 and 63 percent respectively.
Nevertheless, even affluent customers that are not price-conscious are drawn to these jewelry retailers as they offer the same perks that luxury stores do such as lab certifications, financing arrangements, and jewelry insurance policies. Another contributing factor in this dynamic landscape is the ever increasing online presence and audience interaction. In fact, Walmart and Target ranked 19th and 28th most visited website during the 2012 holiday shopping months of 2012 according to ComScore, a digital metric firm. Zales and Kay Jewelers, who are part of the Signet family, marked a significant increase in unique diamond requests.
Given the number and variety of jewelry items they offer, coupled with strength in service, affordability, and digital retail, these retail giants are not to be underestimated in the jewelry market.
Signet Jewelry Retailers is a retail jewelry and watch company which has operations in the U.S. and U.K Outlets in the U.S. go by Kay Jewelers and Jared The Galleria of Jewelry among some other outlets and regional brands, trade names, and trademarks such as: JB Robinson Jewelers, Marks & Morgan Jewelers, Belden Jewelers, Shaw’s Jewelers, Osterman Jewelers, Weisfield Jewelers, LeRoy’s Jewelers, Rogers Jewelers, Goodman Jewelers, Friedlander’s Jewelers, Every kiss begins with Kay, the Leo Diamond, Peerless Diamond, Hearts Desire, Perfect Partner and Charmed Memories, and the recently purchased Ultra Diamonds which adds Ultra Gold, Ultra Diamond Outlet, Ultra Diamond & Gold Outlet, Premier Fine Jewelry and Scamp & Soundrel. Meanwhile, its U.K. Division is made up of H. Samuel, Ernest Jones, Leslie Davis, Forever Diamonds and Perfect Partner outlets.
As of the beginning of the year, Signet’s 1,443 stores in the U.S. garnered 82 percent of sales. And 511 U.K. stores and 13 Ireland stores garnered 18 percent of sales.
The majority of Signet’s outlets focus on middle-market consumers; some target upper-middle-market consumers like Jared the Galleria of Jewelry and Ernest Jones.
About 49% of sales come from Kay Jeweler stores, 25% came from Jared the Galleria of Jewelry, 10% from H. Samuel and 8% from Ernest Jones.
In the U.S. division, 74% are accounted for by diamonds and diamond jewelry. And 11% by gold and silver, 9% other jewelry items, and 6% by watches. 50% of these sales fall under the category of bridal jewelry.
In the U.K. division, 33% of sales are accounted for by watches, 28% by diamonds and diamond jewelry, 20% by gold and silver jewelry and 13 by other jewelry.
25% of these sales fall under the category of bridal jewelry.
Zales’ marketing budget is included in the overall selling, general and administrative costs (SG&A) which marked a 5% increase in 2012. This is due to increased advertising spending and is expected to continue for the current year as marketing is one of their strategic focuses for 2013. Zales is a fine jewelry retailer that operates in 1,124 stores and 654 mall kiosks in the U.S., Puerto Rico and Canada. The company has five store brands - Zales Jewelers, Zales Outlet and Gordon’s Jewelers in the U.S., Peoples Jewellers and Mappins Jewelers in Canada – and 3 kiosk brands – Piercing Pagoda, Plumb Gold, and Silver and Gold Connection. Aside from jewelry, Zales offers credit and jewelry insurance services through its subsidiaries: Zale Indemnity Company, Zale Life Insurance Company, and Jewel Re-Insurance Ltd.
In the year 2012, bridal purchases make up for 50% of the company’s sales. Zales Jewelers stores, which focus on diamond jewelry with a strong emphasis in bridal and fashion segments, and Gordon Jewelers stores, which sell diamond jewelry, watches, gemstones, and gold jewelry, rake up 60% of total sales.
Zales’ 654 mall-based kiosks offer a variety of inexpensive 10-karat and 14-karat gold chains, non-precious metal products and affordable silver and diamond jewelry.
Costco’s Advertising and Marketing expenses are included in the company’s SG&A cost of $9.5 billion.
Costco Wholesale Corporation is a membership warehouse club with hundreds of locations worldwide. They provide a huge selection of merchandise including specialty departments and exclusive members services such as Kirkland Signatures, its proprietary store brand, and Costco Wholesale Industries, which specializes in food packaging, optical laboratories, meat processing, and jewelry distribution.
As of 2012, Costco’s operations include 6.4 million businesses and 622 warehouses.
There are 3 types of membership: Gold Star, Executive, and Business. In addition, Costco also offer loans; auto, home, and health insurance policies; business services, travel packages, high-yield savings accounts, 401 (k) plans and other financial accounts at discounted rates depending on the type of membership.
Finally, he praised Costco’s performance stating, “Despite an environment of ongoing economic challenges, and an ever-changing, but always fierce.
Costco’s jewelry collection consists of a variety of diamonds, gemstone, precious metal, and pearls, set on rings, earrings, watches necklaces, bracelets. Their offerings cover a very wide range of price points that start from $50 to over $100,000. They offer an exclusive selection which consists of the jewelry priced above $100,000.
All of the jewelry items containing diamond(s) 1 carat or larger come with an International Gemological Institute (IGI) appraisal. While those that contain 1.25 carat or larger come with a Gemological Institute of America (GIA) grading report along with an IGI appraisal. Unique pieces come with both documents regardless.
Advertising and Marketing expenses for Sam’s Club, alongside Wal-Mart stores and Walmart International, are reported as part of its parent company, Walmart’s financial statements which is $2.3 billion in 2012.
Sam’s Club is a retail membership warehouse club with the total presence of 612 warehouses. It offers five types of memberships to its more than 47 million members. For individuals and families, business owners and managers. As well as an upgraded membership for all types, for college students, and for active and retired U.S. military personnel.
Its retail offerings span a range of categories that include electronics and computers, office, home, furniture, auto and tires. As well as outdoor and patio, grocery, pharmacy, health and beauty, jewelry, toys and video games, sports and fitness.
Sam’s Club’s jewelry selection consists of diamonds, precious metals, and gemstones on rings, necklaces, bracelets, earrings and bridal jewelry. On average, the price points for their jewelry are similar to that of Wal-Mart which range from $25 to $10,000. Most of the items over $5,000 are bridal jewelry and engagement rings.
As well as an evaluation report, an appraisal summary, or for pendants and rings, a seal of inspection.
Other brands that they offer in stores include Chetan Collection, Eterno Amor, Everlon, Fifth Avenue, Halo, Icon, Loves Ultimate Expression, Othahyuni, Posh Mommy, Premier Diamond, Regal, Roberto Ricci, Silvermist, Susan Blake, Unity and VS Collection. Lastly and interestingly, Sam’s Club offers multiple jewelry care plans depending on price point. These entitle an owner to free unlimited repairs for up to seven years.
Target is second to Walmart as the largest discount jewelry retailers in the U.S. They offer a wide variety of apparel, accessories, furniture, electronics, entertainment products, pharmaceutical services. As well as, health and beauty products, jewelry, office supplies, and grocery and food items. Unlike its competitors, Walmart and Sears, Target appeals as a more trendy and upscale retailer.
As of the beginning of this year, Target’s 1,778 stores are present in all U.S. states except for Vermont. Its 251 SuperStores, on the other hand, are present in 22 states. Also, Target’s expansion plan of opening around 120 stores in Canada by 2013 is well in the works. Aside from main Target stores, SuperStores called Target Greatland and CityTarget are also outlets of the corporation. Target Greatland offers a wider selection of merchandise as well as a food court area for suburban and rural shoppers.
Target’s jewelry collection consists of diamonds, cubic zirconia, precious metal and gemstones. As well as rings, chains, necklaces, earrings, bracelets, watches, fashion jewelry, and bridal jewelry. They sell most of their items online as well as in-store. An advantage not all store have. One can find their selection classified within the apparel category alongside clothing, shoes, and other accessories. All of which accounted for 19 percent of total sales in 2012.
Their price points are considerably lower than most of its competitors with regards to their jewelry. Dean Harries, Karen Erickson, Vicki Beamon, and currently Kate Young and Prabal Gurung are now designing for their team. The most expensive of those items being up to $4,000 and as low as $100.
Total advertising costs for the company decreased from $2.5 billion to $2.3 billion for year 2013.
Wal-Mart Stores, Inc. is a discount retail corporation operates 4,033 stores across all states in the U.S. including Puerto Rico. It also established presence of 6,165 stores in 26 other countries.
A majority, 60% of generated sales are from U.S. Wal-Mart stores, 12% from Sam’s Club, and 28% from international stores.
Wholly owned subsidiaries of international segments in Argentina, Brazil, Canada, China, Japan, and U.K.. Majority-owned subsidiaries are in Chile, Mexico, Botswana, Ghana, South Africa, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Swaziland, Tanzania, Uganda, Zambia, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
Walmart stores vary in size and offerings. They have discount stores, super centers, supermarkets, and small-format stores. However, all sell a huge variety of merchandise in six categories: grocery, entertainment, health, wellness, apparel and home.
Walmart Jewelry Retailers offers a selection of precious metals and diamond and gemstone jewelry items including rings, necklaces, earrings, and a full selection of watches, bracelets, pendants, chains, and also engraved and personalized jewelry and watches. Most of their items in-store are below $100. And they sell their more expensive items on their website. Ranging from up to more than $7000.
Bridal goods are also an important focus for the company, offering Forever Bride Collection, Always & Forever Platinaire Collection, and Keepsake collection.
A typical solitaire style of engagement rings.