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| Type | Public (NYSE: ZLC) |
|---|---|
| Founded | 1924 (Wichita Falls, Texas) |
| Headquarters | Irving, Texas |
| Key people | John Lowe, Jr. (Chairman) Neal Goldberg (CEO) Theo Killion (President) |
| Industry | Retailing |
| Products | Jewelry |
| Revenue | ▲$2.4 billion USD (2006) |
| Operating income | ▼$90.7 million USD (2006) |
| Net income | ▼$54.5 million USD (2006) |
| Employees | 15,500 |
| Website | www.zalecorp.com |
Zale Corporation (NYSE: ZLC) is, through its wholly owned subsidiaries, a leading specialty retailer of fine jewelry in North America. As of July 31, 2009, Zale operated 1,247 specialty retail jewelry stores and 684 kiosks located mainly in shopping malls throughout the United States of America, Canada and Puerto Rico.[1] The Zale Corporation was incorporated in Delaware in 1993. The principal executive offices are located in Irving, Texas.
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History
The company began in 1924 in Wichita Falls, Texas, when Morris (M.B.) Zale, William Zale, and Ben Lipshy opened the first Zales Jewelers store.[2] At the time, credit plans were not common, so their concept of offering one was fairly revolutionary, marketed under the slogan, "a penny down and a dollar a week." By the beginning of World War II, the company had expanded to a dozen stores throughout Texas and Oklahoma.
During the lean war years, Zales maintained its prices and looked for expansion opportunities. In 1944, Corrigan's of Dallas was acquired, a finer jewelry purchase that eventually launched the Bailey Banks & Biddle brand.
The year 1957 was marked both by Zales' first entry into a shopping center (rather than stand-alone downtown locations), and the company's listing on the American Stock Exchange.
In 1986, the company was bought out by a Canadian and Austrian consortium, and in 1989, the entity bought Gordon's Jewelers.
Zale Corp. is now a public company trading on the New York Stock Exchange.
Zale used to operate leased fine jewellery departments (in department stores) known as Diamond Park Fine Jewelers, but sold off the chain to Finlay Enterprises in 1997.[3]
In fiscal year 2006 Zale Corporation tested a repair store concept, branded as Master Jewelry Repair. The concept was deemed a failure and all three test stores were closed in 2006.
Zale closed all 86 Peoples II kiosk and cart locations in Canada in 2007. The concept was meant to be the Canadian version of Piercing Pagoda, but ultimately failed.
In the first quarter of fiscal year 2008 Zale Corporation sold the Bailey Banks & Biddle upscale jewelry chain (including one store operating as "Zell Bros.") to Finlay Enterprises.[4]
In 2008 105 locations closed (12% of total). More closings are expected in 2009.
Business units
Zale Corporation is composed of several different business units:
- Zales Jewelers: Zales, the national flagship, is a leading brand name in jewelry retailing in the U.S., operating 784 stores in 50 states and Puerto Rico with an average store size of 1,687 square feet.[5] Zales is positioned as "Americas Diamond Store Since 1924" given its emphasis on diamond jewelry especially in the bridal and fashion segments. Their primary competitor in the United States is Kay Jewelers..[4]
- Gordon's Jewelers: Gordon’s operates 261 stores in 35 states and Puerto Rico with an average store size of 1,536 square feet.[5] The company's regional chain that historically focused on a slightly higher market than Zales. Gordon's also focuses more on the bridal and fine watch markets compared to Zales. The current slogan is "Celebrating Relationships". Recently Gordon's has started to carry many of the same jewelry collections as Zales.
- Zales Outlet: The outlet concept features items in every major jewelry category including branded watches, gemstones, gold merchandise, and diamond fashion and solitaire products. The merchandise assortment in a typical Zales Outlet store caters to the higher-income female self purchaser, offering 20 to 70 percent off traditional retail prices every day. The Zales Outlet concept has grown over the past ten years from four stores in 1998 to the 143 stores in operation at the end of fiscal year 2008.[5]
- Piercing Pagoda: Piercing Pagoda is the collective name of all nameplates that operate under the Zales' Kiosk Jewelry unit, including: Piercing Pagoda, Plumb Gold, and Silver and Gold Connection. This segment operates through mall-based kiosks, and reaches the opening price point jewelry customer. At the entry-level price point, the Kiosk Jewelry segment targets a young, fashion forward customer with an extensive collection of bracelets, earrings, charms, rings, and gold chains, as well as a selection of silver and diamond jewelry. In addition, trained associates perform ear-piercing services on site. As of July 31, 2008, Piercing Pagoda operated 739 locations in 42 states and Puerto Rico.[5]
- Peoples Jewellers: The Canadian version of Zales. They are differentiated by having exclusive diamonds, some of which are mined in Canada. Like Zales in the US, Peoples is known in Canada as "The Diamond Store". There are 196 Peoples locations (including Mappins locations in that number).[4]
- Mappins Jewellers: A Canadian version of Gordon's. Historically targets a higher-end market than Peoples. Many of their collections are similar to Peoples. Mappins was originally part of British jewelry chain "Mappin and Webb".
- Zale also operates two Internet-based enterprises, Zales.com and Gordonsjewelers.com, through a partnership with GSI Commerce.[6]
Controversy
Zales allegedly terminated Rose Camilleri, a highly successful sales representative, a week after she had requested time off to have surgery to treat a life-threatening aortic aneurysm. Camilleri has also claimed that Zales delayed her COBRA paperwork to the point where she had to reschedule her surgery.[7][8]
References
- ^ "Zale Corporation 2009 Annual Report". Zale Corporation. 2009-07-31. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTk3OTF8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1. Retrieved 2009-11-06.
- ^ Zale Corporation (2005). "Zale Corporation: Our History". Corporate homepage. http://www.zalecorp.com/company/company2.aspx. Retrieved 2006-09-17.
- ^ Staff of JCK-Jewelers Circular Keystone (1997). "Finlay to Buy Assets of Zale Corp's Diamond Park". JCK. http://www.jckonline.com/article/CA6252134.html. Retrieved 2007-02-17.
- ^ a b c "Zale F1Q08 Earnings Call transcript". Seeking Alpha. 2007-11-20. http://www.seekingalpha.com/article/54899-zales-f1q08-qtr-end-10-31-07-earnings-call-transcript. Retrieved 2007-11-27.
- ^ a b c d "Zale Corporation 2008 Annual Report". Zale Corporation. 2008-07-31. http://media.corporate-ir.net/media_files/irol/64/64546/ZaleAnnualReport2008.pdf. Retrieved 2009-05-06.
- ^ "Gordon's Jewelers Launches Its First Webstore with E-Commerce Solution Partner GSI Commerce". PR Newswire. 2007-05-11. http://www.sys-con.com/read/374571.htm. Retrieved 2007-06-06.
- ^ http://consumerist.com/5207364/zales-fires-top-earning-saleswoman-because-she-needs-surgery
- ^ http://www.recordonline.com/apps/pbcs.dll/article?AID=/20090409/BIZ/904090314
External links
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