Story Highlight
– Neil Old navigated crises impacting Signet Jewelers’ UK business.
– Ernest Jones shifted focus to mid-market watch segment.
– Exit from prestige brands enhanced market positioning strategy.
– Store and digital upgrades aim for improved customer experience.
– H. Samuel shows stronger performance compared to Ernest Jones.
Full Story
Neil Old’s tenure as managing director of Signet Jewelers’ UK operations, which includes well-known chains H. Samuel and Ernest Jones, has been marked by significant challenges and transformative changes since he assumed leadership in 2019.
Shortly after taking charge, the onset of the COVID-19 pandemic forced a complete closure of all retail showrooms. The situation worsened in 2021 with the outbreak of war in Ukraine. In the following years, the retail sector has struggled under increasing costs due to rises in the National Living Wage, higher taxes, and new regulations, all while receiving little support from successive government administrations.
Nonetheless, Old and his team have viewed these difficulties as opportunities to recalibrate their business strategy. They have started redirecting Ernest Jones from the competitive luxury watch segment to a more sustainable mid-market approach.
The decision was made to withdraw from “prestige watch” retailing, which included high-end brands such as Omega, Cartier, IWC, and Panerai. This strategic pivot arose from the recognition that without access to dominant brands like Rolex, sustaining competitiveness in the high-end market proved to be unfeasible.
As a result, Ernest Jones is now focusing on a “premier” watch segment, with price points ranging between £600 and £1,500, featuring names like Longines, Tissot, and Rado. This shift places the brand above H. Samuel while still catering to a more expansive customer demographic.
A key aspect of this transformation is segmenting the average selling prices, which are now approximately double at Ernest Jones compared to H. Samuel, highlighting a deliberate differentiation in both pricing strategies and target audiences across the two chains.
Parallel to these strategic developments, Signet is investing in upgrading both its physical store network and digital capabilities. Enhancements have already revitalised many H. Samuel locations, with similar improvements underway for Ernest Jones, all aimed at providing a distinct and premium retail experience, both online and offline.
In a recent interview with WatchPro founder Rob Corder, Neil Old discussed the evolution of the business since his arrival. Reflecting on the early days of the pandemic, Old explained, “When I joined just before covid… that gave us the opportunity to accelerate what was going to be a three-year plan.” This included reassessing the number of stores and significantly enhancing digital offerings as physical locations were forced to close.
When stores reopened post-lockdown, the company opted not to reinstate all locations. Instead, it retained its best-performing employees while streamlining its retail space, thereby establishing a robust online presence.
Old noted the exit from the luxury watch sector, stating, “We performed well in the 18 months following covid… but… we were never likely to bring Rolex back into our stores.” This acknowledgment was rooted in competitive dynamics, where rival entities like Watches of Switzerland were expanding their market reach, particularly in luxury sectors that Signet could not effectively access.
With a more focused direction, Ernest Jones is now seen as serving a mid-market that had previously been overlooked. Old commented on consumer trends, recalling a personal anecdote, “I asked what she wanted to spend… which to her was a budget of £600.” This insight reflects the brand’s commitment to understanding the needs of its broader customer base.
In 2023, the company reached an agreement to offload 19 Ernest Jones outlets, enabling focus on refining the brand’s key propositions without the constraints of the luxury watch market. The resultant clarity between Ernest Jones and H. Samuel is reflected in the distinct offerings available at each retailer.
Old emphasized the strategic differentiation between the two chains, commenting that “the average selling price for a watch in Ernest Jones is double that of H. Samuel.” The separation allows H. Samuel to thrive in a high-volume segment while Ernest Jones aligns itself with a more premium clientele.
Despite challenges, including the strain of rising operational costs, Old asserted that ensuring fair wages is crucial. He specified, “We’re happy to see [the National Living Wage] rise… but business rates is different,” highlighting the need for governmental intervention to alleviate financial pressures on large retailers.
As Signet Jewelers positions itself for the future, the success of its revamped strategies in the UK market reflects a substantial commitment to adapting while enriching customer engagement and experience in the evolving retail landscape.
