#7 - Signet Jewelers (NYSE:SIG)
The last stock on this list is Signet Jewelers (NYSE:SIG). I’ll admit to not paying much attention to jewelry retailers in the last 12 months or more. So it was more than a little surprising to see that SIG stock is up a whopping 522% in the trailing twelve months. And it’s up 116% in 2021. That may be the tailwind that will allow Signet to meet its forecast of opening 87 new stores in 2021.
Jewelry is typically the kind of item that consumers want to see and touch. But through its “Path to Brilliance” initiative, Signet was able to more than quadruple its e-commerce sales. This took the company from 5% which was below the sector average to over 20% which was above the sector average.
With over 700 trained virtual sellers and features such as virtual try-on’s, the company is poised to continue that success even as the company’s stores are now open. The company is also making inroads with Gen Z customers with a program in which consumers can pay for items in four bi-weekly payments.
About Signet Jewelers
Signet Jewelers Limited operates as a diamond jewelry retailer. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in jewelry stores in malls, mall-based kiosks, and off-mall locations in the United States and Canada primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Outlet, Zales Jewelers, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through its digital banners, James Allen and Blue Nile.
Read More - Current Price
- $102.60
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $109.60 (6.8% Upside)
Perhaps the death of in-person retail is inevitable. But for now, in 2021, brick-and-mortar stores still have a purpose. And as the companies in this presentation show, successful retailers can take a “both/and” approach. E-commerce and a brick-and-mortar presence can co-exist. It’s about the customer. And increasingly it’s about the customer experience (CX).
In an omnichannel world, consumers want the flexibility to buy what they want, when they want it, and to be able to pick it up or have it delivered in a way that’s most convenient to them. As the pandemic eases, convenience may be taking a back seat to getting out and being among people again.
However, with the current bifurcation in the economy, many consumers remain extremely price sensitive. Some of these same consumers may lack internet access.
For these and other reasons, it’s a favorable environment for in-person retail. Be sure you’re taking advantage of it by considering these stocks and others like them for your portfolio.
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