The announcement coincided with its full-year results, with growth driven by its jewelry brands.
In an era of big deals, what’s next?
July 2, a week from today, will mark the midway point of 2014. There will be exactly 183 days behind us and 182 more to go.
Let’s start by looking at some activity that began late last year.
In October, Hudson’s Bay Company, which owns Lord & Taylor along with a couple of Canadian chains, won shareholder approval for its purchase of Saks Inc. (Around this same time, another high-end department store chain, Neiman Marcus, also changed hands but it was not to merge with another retailer. The chain was sold to a different private equity firm.)
Then New Year’s Eve, and Day, came and went. I learned yet another valuable lesson about drinking too much champagne, a lesson I apparently enjoy relearning every couple of years.
January passed quietly. A few weeks into February, however, news broke that Signet Jewelers Ltd. planned to acquire Zale Corp. in a $1.4 billion deal. It was, as I later observed, the culmination of consolidation in the jewelry industry. These are the two biggest jewelry retailers in the United States, and their union will create a chain of more than 3,600 stores in three countries.
Their merger spoke volumes about the state of the majors today. There simply isn’t room in the market for two retailers of this size anymore, given Internet competition and today’s increasingly shrewd consumers, who need a heavy amount of convincing in order to part with their money and almost always expect a deal or added value when they do.
After some back and forth with various shareholder groups, the dust settled on the Signet-Zale deal, with Zale’s shareholders voting yes on the merger in late May, while the bulk of the industry was in Las Vegas for market week.
I managed to avoid additional painful champagne lessons in Las Vegas this year and returned home in relatively decent shape.
Less than a month after I got back, more big news broke: Chinese retailer Chow Tai Fook, which rivals the new Signet-Zale in size, is planning to buy Boston-based diamond brand Hearts on Fire for $150 million.
The proposed acquisition is a huge boost to both parties involved. It gives Hearts on Fire the entryway into the Chinese market it has long sought and the backing of one of the world’s largest jewelry retailers. It gives Chow Tai Fook possession of a well-established brand, a
All of this, of course, comes on the heels of the early 2013 announcement that the Swatch Group was buying the Harry Winston name and its network of retail stores nationwide. The transaction provided Biel/Bienne, Switzerland-based Swatch, which already owns a number of high-end watch brands, a foothold in the luxury jewelry market.
All of this activity, for me at least, begs the question: What’s next, in this ultra-competitive, post-recession retail landscape?
The possible acquisition of Tiffany & Co. by one of the large luxury goods conglomerates, such as Kering (formerly PPR) or LVMH, is something that’s been talked about for years.
What about other brands, such as David Yurman, Scott Kay and John Hardy? John Hardy was making headlines late last year, with buyout firms allegedly vying to acquire the Hong Kong-based brand, though the rumblings about this deal have quieted as of late. I was told by a source in Las Vegas that the buyout isn’t happening.
I don’t know what will be the next big breaking news story that keeps me here late at night, but I am sure of two things: The industry will witness another big deal go down before the end of the year, and I haven’t yet learned my lesson about champagne.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
The ad aims to position platinum jewelry as ideal for everyday wear.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.