Zales
Jewelry
Zale
Corporation
(NYSE: ZLC)
is the
second
largest
specialty
retailer of
fine jewelry
in North
America,
operating
2,203 retail
locations,
(which
includes
both
kiosks/carts
and stores)
throughout
the United
States,
Canada, and
Puerto Rico
as of
October 31
2007 . Zale
Corporation
is comprised
of several
different
business
units:
* Zales
Jewelers:
The flagship
brand and
main focus
of the
company.
Their main
competition
is Kay
Jewelers.
Zales has
returned to
their slogan
"The Diamond
Store"
(which was
their slogan
before "Be
Brilliant")
and a focus
on the
middle-income
market. As
of October
31 2007
there were
796 Zales
Jewelers
stores.
* Zales
Outlet: The
outlet
version of
Zales that
carries a
large amount
of clearance
merchandise.
There are
several
differences
when
compared to
traditional
Zales
stores, such
as returns
not being
accepted and
"every day
low prices"
used,
compared to
Zales' sales
and
discounts.
As of
October 31
2007 there
were 137
Zales Outlet
locations.
* Gordon's
Jewelers:
The
company's
regional
chain that
focuses on a
slightly
higher
market than
Zales.
Gordon's
also focuses
more on the
bridal
market than
Zales. The
current
slogan as
seen in
their
catalog
valid
through
October 11,
2007 is
"Love. Then,
Now, and
Forever".
Recently
Gordon's has
started to
carry many
of the same
jewelry
collections
as Zales.
There were
282 Gordon's
Jewelers
locations as
of October
31 2007.
* Piercing
Pagoda: A
kiosk chain
that focuses
on lower-end
merchandise
such as 10K
gold and
sterling
silver
chains,
charms, and
bracelets.
Cubic
zirconia
jewelry is
also a
featured
offering.
Their
business is
driven
through ear
piercing.
Some
locations
have
different
nameplates,
such as
"Piercing
Pagoda Too",
"Totally
Pagoda",
"Plumb
Gold", or
"Silver &
Gold
Connection".
There were
792 Piercing
Pagoda
locations as
of October
31 2007.
* Peoples
Jewellers:
The Canadian
version of
Zales. They
are
differentiated
by having
exclusive
diamond
solitaires,
some of
which are
mined in
Canada. Also
known as
"The Diamond
Store".
There were
196 Peoples
locations
(including
Mappins
locations in
that
number).
* Mappins
Jewellers:
Canadian
chain.
Targets a
higher-end
market than
Peoples.
Many of
their
collections
are similar
to Peoples.
Zalecorp
also
operates two
Internet-based
enterprises--Zales.com
and
Gordonsjewelers.com,
--through a
partnership
with GSI
Commerce.
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.
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. The
stores were
similar to
Fast Fix
Jewelry
Repair
locations.
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 to
Finlay
Enterprises.
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. 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 1984, the
company was
bought out
by a
Canadian and
Austrian
consortium,
and in 1989,
the entity
bought
Gordon's
Jewelers.
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