Signet Jewelers Store Closures: Kay Jewelers, Zales, And Jared Locations Affected

Signet Jewelers (SIG) is the latest retailer to announce that it is closing 150 of its store locations. The company operates Kay Jewelers, Zales, and Jared branded jewelry stores.

The news from Signet comes after it reported decreasing sales as part of its 2019 Q4 financial reporting. The company said as part of its three-year plan called the Path to Brilliance transformation plan; it will close 13 percent of its stores, which amounts to 455 locations.

The company closed 262 stores that were underperforming in malls, saying the next round of store closures will happen after the 2019 holiday season. Signet has more than 3,500 locations worldwide.

Signet’s 2019 Q4 financials reported a 2 percent decrease in same-store sales, which the company said was a result of consumer weakness in the U.K. and low holiday performance in 2018.

“We did not finish the year as strongly as expected," Virginia Drosos, chief executive officer at Signet Jewelers, said in a statement.

As part of the Path to Brilliance, Signet expects a net cost savings of $60 to $70 million by 2020. The company anticipates that savings in the procurement of merchandise, facility consolidation, and payroll savings will help it achieve this goal.

Signet is also banking on smaller and redesigned stores as well as a focus on online sales to boost its performance and help to revitalize the Kay, Jared, Zales brands. According to Drosos, as much as 70 percent of its customers shop online prior to visiting one of its stores.

Shares of Signet stock were up 0.94 percent as of 2:09 p.m. ET on Thursday.