Signet Jewelers Limited, the global jewelry retailer, has taken a strategic step towards the growing rental market by acquiring Rocksbox, an online jewelry rental service. The acquisition aims to boost Signet’s digital presence and expand its services offering, which has traditionally focused on repair, warranty services, and piercings. The terms of the acquisition have not been disclosed.
Rocksbox, established by CEO Meaghan Rose in 2012, is an online platform that allows monthly subscribers to rent and exchange designer jewelry pieces. Similar to rental platforms for luxury apparel and accessories like Rent the Runway and Le Tote, Rocksbox appeals to customers with its accessibility and circularity.
With the acquisition of Rocksbox, Signet Jewelers intends to cater to self-purchasing female customers, a segment where the company currently lacks development. As the parent company of renowned jewelry retailers Kay, Zales, and Jared in the U.S., as well as H. Samuel and Ernest Jones in the UK, Signet Jewelers also owns digital-first jeweler James Allen.
Signet CEO Virginia C. Drosos expressed enthusiasm about the acquisition, stating that the union would create exciting opportunities to accelerate growth in services and reach new customers. Drosos highlighted Rocksbox’s strengths in providing personalized, data-driven customer experiences and looks forward to extending these services to more customers. She also emphasized the opportunity to introduce Rocksbox’s customers to the other brands in Signet’s portfolio.
The acquisition of Rocksbox aligns with Signet’s Inspiring Brilliance growth strategy, which aims to boost services revenue and strengthen digital commerce. It reflects Signet’s renewed focus on corporate responsibility by promoting the circular economy.
In the fiscal year that ended on January 30, 2021, Signet reported a 14.8% decrease in net sales, amounting to $5.2 billion, due to the impact of the Covid-19 pandemic. However, annual e-commerce sales experienced a significant 57.9% year-over-year increase. Signet reported a net loss of $48.7 million, or $0.94 per diluted share, compared to the previous year’s income of $72.6 million, or $1.40 per diluted share. Currently, Signet operates around 2,800 stores in the U.S., Canada, and the UK.
In summary, Signet Jewelers’ acquisition of Rocksbox enables it to enter the rental market and expand its digital capabilities, providing new services to customers and supporting its growth strategy. This move not only broadens Signet’s reach but also aligns with its commitment to corporate responsibility in the evolving retail landscape.
Useful Links:
1. Rent the Runway: Rent the Runway is a popular rental platform for designer apparel and accessories.
2. Le Tote: Le Tote is a subscription-based rental service for women’s clothing and accessories.
