- Shopping malls have lost their luster for Kay, Zales, and Jared stores.
- Signet Jewelers, the parent company of the trio of jewelry outlets, announced in its latest earnings report on Wednesday that it plans to close 150 stores over the next year, with a special focus on mall locations.
- “Signet is too highly exposed to lower performing malls,” a Signet spokesperson told Business Insider.
- It’s just the latest sign that the American shopping mall is an endangered species.
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Pretty soon, finding a diamond store in a mall might be as hard as finding a diamond in the rough.
Signet Jewelers, the jewelry giant that owns all three retailers, announced in its latest earnings report on Wednesday that it plans to embrace a strategy of limiting new store openings to “off-mall locations.” It plans to close 150 stores over the next year, with a special focus on mall locations.
“Signet is too highly exposed to lower performing malls, so we are being highly disciplined in evaluating our store performance and decisions on which stores to close will be economically driven and based on the profitability and potential of each store including our ability to renegotiate leases at favorable rates,” a Signet spokesperson told Business Insider in a statement.
Signet, the largest jewelry retailer in the world, has had its struggles. This latest report notes that the company closed 262 stores in fiscal year 2019, and the upcoming closures are part of its plan to “strategically reduce and reposition its real estate footprint to increase store productivity.”
By fiscal year 2020, the company plans to have cut its store base by 13% in three years.
“We are highly focused on sales retention,” the…