Signet to Shut 200 Stores after Sales Disappoint

RAPAPORT... Signet Jewelers has unveiled a three-year plan for returningthe company to growth, after sales slid last year.The retailer, whose brands include KayJewelers, Zales and Jared, aims to close more than 200 stores by February2019 and upgrade its e-commerce business in a bid to reverseits recent disappointing financial performance. It also plans to reduce costs and improve value for customers, it said in astatement Wednesday. The jeweler's same-store sales - at branchesopen for a year - dropped 5% both for the fourth quarter ending February 3 andfor the full fiscal year, mainly due to issues with the company's outsourcingof its credit services. Total sales dropped 2.4% to $6.25 billion at all storesfor the full year, and increased 1% to $2.29 billion for the fourth quarter,the retailer said. Signet's share price slumped 17% during morning trading Wednesday."Fiscal 2018 was a challenging year forSignet," said CEO Virginia Drosos. "We gained sales momentum in our Zalesbanner in the fourth quarter as our strategic initiatives began to take hold,but we experienced challenges at our Kay and Jared banners, including executionissues related to the first phase of our credit-outsourcing transaction."As part of the transformation, Signet has appointed Sharon McCollam andNancy Reardon as independent board directors. McCollam is the former executivevice president, chief administration officer and chief financial officer ofBest Buy. Reardon was previously chief human resources and communicationsofficer at Campbell Soup Company. The plan is the most recent initiative inSignet's efforts to improve performance. In January, Signet changed its reportingstructure, creating one line of communication for each team within a storebrand, all of which report to president and chief customer officer Seb Hobbs.Image: Helen89/Shutterstock