Signet Jewelers, the largest diamond retailer in the world, announced last that it would require subscription box service Rocksbox. The acquisition is part of the company’s “Inspiring Brilliance” growth strategy, which aims to accelerate growth in the jewelry services category. This includes services like repair, warranty services and piercings, as well as some new services Signet plans to launch. Terms of the deal were not disclosed.
Signet is perhaps best known for retail jewelry brands including Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples, Piercing Pagoda and JamesAllen.com. Collectively, Signet operates approximately 2,800 stores.
Launched in 2012 by Meaghan Rose, Rocksbox allowed customers to rent and swap jewelry through a subscription service. Jewelry included designer jewelry as well as designs exclusive to the brand, allowing subscribers to wear trendy pieces without being obligated to buy or keep the pieces long-term. Subscribers can purchase what they loved and returned the rest for a new selection. Brands include Kate Spade, Kendra Scott, gordana, Perry Street, Sophie Harper and Slate.
New Rocksbox subscribers complete a style profile. In exchange for a $21 membership credit, subscribers receive three pieces of designer jewelry each month on a rental basis with unlimited swaps. They can then use that credit on any jewelry items they decide to purchase. Subscribers also receive discounts on jewelry purchased in the Rocksbox shop online.
“I’m delighted to welcome the talented Rocksbox team to our Signet family and am confident this union will generate exciting opportunities to accelerate our growth in services and reach new customers,” said Signet CEO Virginia C. Drosos.
“Under CEO Meaghan Rose’s leadership, Rocksbox has revolutionized the jewelry rental subscription marketplace by delivering personalized, online and data-driven customer experiences for jewelry lovers who prioritize fashion, online convenience and sustainability. We look forward to bringing Rocksbox’s outstanding services to more customers, and to introducing those new customers to the balance of Signet’s banners,” Drosos added.
Rose, who is a jewelry lover and former strategy consultant, also commented on the acquisition.
“We are excited to join Signet and to play an important role in its purpose-driven growth strategy – Inspiring Brilliance – while also taking the company we’ve so passionately grown to an entirely new level,” Rose said. “I started Rocksbox to make it easy and fun for women to discover jewelry that they love – and that won’t change. We’re excited to give even more members the opportunity to experiment with new, fashionable jewelry styles through a technology-enabled, personalized rental experience. As a customer-first, data-driven and values-oriented company, we were selective about finding the right partner. I am proud to join the Signet team and excited about the opportunities this alignment brings.”
We had the opportunity to interview Rose for a Subscription Insider feature in 2016. At that time, she shared lessons that helped her company shine from the beginning was leveraging social media to engage with customers, being nimble and adapting quickly, and learning from her customers.
Company raises Q1 and full year FY2022 guidance
Yesterday, Signet Jewelers raised its guidance for the first quarter and full year of fiscal 2022. Signet said that conversions and sales have both increased due, in part, to tax refunds, stimulus payments, consumer enthusiasm over COVID vaccines, and the company’s guest appreciation events held in late March.
The updated guidance is as follows:
|First quarter FY2022||Full year FY2022|
|Total revenue||$1.57 to $1.6B||$6.0 to $6.14B|
|Same store sales||97% to 99%||17% to 20%|
|Non-GAAP operating income||$85M to $100M||$335M to $364M|
This acquisition allows Signet to expand into a new arena – jewelry rental subscriptions – which gives the company a new revenue stream while expanding on its jewelry services. It also gives Signet the opportunity to reach a new “highly engaged,” tech-savvy audience interested in the latest trends as well as a good value. This deal is good for all concerned and a smart play on Signet’s part.