Store closures cause Signet Jewelers-owned UK retailers' sales to shrink by 2% in latest quarter
Signet Jewelers has reported a 2% decrease in sales for its UK operations, attributed to store closures and increasing competition from rivals such as F. Hinds and Beaverbrooks. The company operates 81 Ernest Jones and 167 H. Samuel stores in the UK, significantly reduced from 272 a year ago. The closure of nine stores in the latest quarter resulted in a one-off cost of $2.1 million, contributing to an operating loss of $6.4 million in the region. Despite a global same-store sales increase of 3% to $1.39 billion and a substantial rise in operating profit, Signet's UK segment is under pressure as it generates a more significant portion of revenue from watches compared to its U.S. operations. Recent efforts to enhance brand relationships, including the opening of monobrand stores for luxury watch brands, have faced challenges, including the loss of these brands to a competing retailer shortly after their introduction.
