Signet taps into growing rental market with acquisition of Rocksbox
Global jewelry retailer Signet Jewelers Limited announced on Tuesday that it has acquired online jewelry rental service Rocksbox as part of its efforts to boost its digital presence and expand its services offering, hitherto focused on repair, warranty services and piercings. The terms of the acquisition have not been divulged.
Launched by current CEO Meaghan Rose in 2012, San Francisco-based Rocksbox is an online platform allowing monthly subscribers to rent and swap designer jewelry pieces. Touting accessibility and circularity as its main draws, the marketplace mirrors similar rental platforms offering luxury apparel, footwear and accessories, such as Rent the Runway and Le Tote, both of which have achieved solid growth over the past few years.
With the purchase of Rocksbox, Signet Jewelers, whose portfolio includes Kay, Zales and Jared in the U.S., and H. Samuel and Ernest Jones in the UK, as well as digital-first jeweler James Allen, said that it hopes to offer “an additional point of entry for self-purchasing women customers, a segment where Signet is currently under-developed.”
“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 in a release.
“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,” she added, after highlighting the newly acquired company’s strengths in personalized, data-driven customer experiences.
In March, Signet announced that it was entering a new phase of its Inspiring Brilliance growth strategy, a development which involves the company focusing on accelerating its services revenue and doubling down on digital commerce.
The acquisition of Rocksbox fits neatly into these objectives, while its promotion of the circular economy also supports Signet’s renewed emphasis on corporate responsibility – another spoke of the Inspiring Brilliance wheel.
In the fiscal year ended January 30, 2021, Signet’s net sales totaled $5.2 billion, falling 14.8% from $6.1 billion in the previous year due to the impact of the Covid-19 pandemic, despite a 57.9% year-over-year increase in the company’s annual e-commerce sales.
The retailer’s annual net loss came to $48.7 million, or $0.94 per diluted share, compared to income of $72.6 million, or $1.40 per diluted share, in the prior year.
Signet currently operates approximately 2,800 stores in the U.S., Canada and the UK.
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