With each passing day, we have been hearing news about big companies from every industry, be it Dr Squatch, Wells Fargo, or Boston Market, closing stores. And now, a leading jewelry store, Kay Jewelers, has also announced mass store closures. This might make you wonder- Is Kay Jewelers going out of business?
In this guide, we have revealed why Kay Jewelers is closing stores and if it is really going out of business in 2023. So make sure you read till the end.
About Kay Jewelers
Kay Jewelers is a leading jewelry store in America that was founded in 1916.
Back when the first Kay Jewelers store opened in Reading, Penn, customers could find sunglasses, silverware, razors, and appliances, among other things.
But eventually, it started adding stunning jewelry pieces and gained popularity because of that.
Keep on reading to find out what happened exactly and if Kay Jewelers is going out of business.
Why Is Kay Jewelers Closing Stores?
Kay Jewelers shut down almost 2,800 of its jewelry stores in North America due to the Pandemic in 2020. Consequently, in April, the company started furloughing employees from the remaining stores and support centers to save cash.
As a result of this, Kay Jeweler’s sales fell by 40% to $852 million in the last quarter of that year. And even though online sales at that time rose by 6.7%, it was just not enough to cover the blow from mass store closures.
As you can imagine, the Pandemic hit the sales of the company badly, and this is the biggest reason why Kay Jewelers is closing stores.
Is Kay Jewelers Going Out Of Business?
Signet Jewelers, which owns Kay Jewelers, very recently announced that they will not be re-opening about 380 of its stores that shut down during Covid-19.
The list of stores that would remain shut down has not been realized by the company. However, the company mentioned that it includes 80 stores in the United Kingdom and 150 stores in the U.S.
As a result of this big move, you might be wondering- Is Kay Jewelers going out of business?
Well, as of 2023, there is no new update on whether Kay Jewelers is going out of business. Signet Jewelers has shut down the majority of Kay Jewelers stores. However, the company is trying to boost sales of Kay Jewelers.
We advise you to keep an eye on the latest news to see if the measures the company is taking will help Kay Jewelers survive or not.
What Is The Future of Kay Jewelers?
Because of the unexpected blow from the pandemic, Kay Jewelers sales were affected deeply.
However, the company has taken several measures to subside the effect of the revenue loss from closures.
The company has come up with a “Path to Brilliance” strategy that aims at reducing the store count to minimize the footprint. As a result, they are streamlining physical locations to ensure an effective presence in the market.
They are also focusing on online sales, and for this, they are investing in e-commerce capabilities.
To increase their sales, the company is trying to cut costs in the supply chain and is adjusting store hours.
Signet Jewelers is applying these strategies to all three of its brands: Kay Jewelers, Jared, and Zales. They are also keeping an eye on their competitors and are trying to benefit from market gains.
In these challenging times, the company is taking all these positive steps to stay ahead. Will the efforts yield fruits? Only time will tell.
The pandemic has deeply impacted Kay Jewelers. And the effect has been so bad the company has decided not to re-open plenty of its stores that closed down during the pandemic.
Although Signet Jewelers, the parent company of Kay, has implemented strategies to turn the tables around, only time will tell whether the efforts will do any good.
We hope you found this article on- Is Kay Jewelers Going Out Of Business 2023? Useful.
Should you buy from Kay Jewelers?
Kay Jewelers is considered one of the most premium brands of sterling jewelry. However, as per customers, the quality of their diamonds is below par does not do justice to the high price.
How many Kay Jewelers stores are there?
As of 2023, there are 691 Kay Jewelers locations in the United States.
Where is Kay Jewelers headquartered?
Kay Jewelers is headquartered in 3265 W Market Street, Akron, OH, USA.