Peoples Jewellers owner bought for US$1.4B in deal that could bring Kay Jewellers to Canada
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Peoples Jewellers owner bought for US$1.4B in deal that could bring Kay Jewellers to Canada Two of the U.S.' biggest diamond sellers — including the owner of Canada’s Peoples Jewellers and Mappins — have agreed to a multi-million dollar marriage of convenience
Article content Two of the U.S.’ biggest diamond sellers — including the owner of Canada’s Peoples Jewellers and Mappins — have agreed to a multi-million dollar marriage of convenience.
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Article content Signet Jewelers Ltd.’s acquisition of Zale Corporation, a deal valued at US$1.4-billion including debt, is the latest sign of industry consolidation as chains and mom-and-pop shops increasingly battle online upstarts for customers. We apologize, but this video has failed to load.
tap here to see other videos from our team. Try refreshing your browser, or Peoples Jewellers owner bought for US$1.4B in deal that could bring Kay Jewellers to Canada Back to video The top two U.S. mid-priced jewellers announced Wednesday they have entered into an agreement in which Signet will acquire all of its smaller rival’s issued and outstanding stock at US$21 in cash per share, a 41% premium over the closing price on the New York Stock Exchange a day earlier. With this acquisition Signet, the largest specialty retailer in the U.S. and the U.K., boosts its store locations from 1,900 to 3,600 and becomes the leading trinket retailer in Canada, said Mike Barnes, the chief executive and director of Signet Jewelers.
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Article content “We are not only number one in the U.S. and the U.K.; this acquisition will also make our newly combined company number one in Canada as well and it will allow us to continue building a platform for potential future geographic expansion,” he said during a conference call Wednesday. Investors seemed to like the pairing as Zale stock rose more than 40% to close at $20.92 on the New York Stock Exchange — impressive given that it hovered as low as $3.80 last March. Signet’s stock rose 18% Wednesday. The combined company will generate approximately US$6-billion in sales and more than $700-million in EBITDA, and will have nearly 30,000 associates, Mr. Barnes said. With Signet’s jewellery brands Kay and Jared, which are leaders in the mid-priced and the upper-mid-priced segments, the addition of Zale’s equally mall-friendly brands “will help us maximize our midmarket success,” he said.
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Article content The new company is also expected to see $100-million in synergies by the third year of operation, in large part due to stronger buying power and cost improvements, Signet executives said on the conference call. The Zale brand will operate as a separate standalone division within Signet, led by Zale’s chief executive Theo Killion. This acquisition, subject to shareholder approval, would cap what has been a tumultuous run over the years for Zale, and Peoples Jewellery. Peoples was founded in Toronto 1919 by the Gerstein family, which grew the business over the following decades into a chain of jewellery stores with as many as 280 locations by the 1980s. In 1986, Peoples teamed up with Switzerland’s Swarovski International to swing the junk-bond financed US$650-million purchase of Zale, which at the time was a firm more than five times its size. In 1989, the company later bought Gordon Jewelry Corp for US$311-million.
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Article content But after recession hit in the early 1990s, combined with high interest payments, Zale was pushed to the brink, filing for bankruptcy in 1992. In 1993, Peoples followed it down. In an odd twist, by 1999, a stronger, financially-healthier Zale bought Peoples Jewellery for US$115-million. Many years later, consolidation in the jewellery industry at all price points continues, said David Wu, luxury goods analyst at Telsey Advisory Group in New York. Hamilton, Bermuda-based Signet had previously discussed buying Zale but those talks ended in 2006 after Zale’s board decided to stay independent, according to Bloomberg. After Zale saw slumping sales in recent years, it embarked on a multi-year restructuring which is “starting to bear fruit”, said Mr. Wu, drawing a suitor.
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Article content Zale Corp.’s holiday sales results showed overall comparable store sales up 2%, with Zales’ branded stores up 4.4% and Peoples performing strongly at 2%. Mappins, however, saw sales drop more than 6%. In both Canada and the U.S., this sector of retail remains fragmented with independent retailers and mom-and-pop stores competing with the jewellery giants, but consolidation is increasing as chains look to benefit from economies of scale. “Consolidation has been happening, but at a very slow pace,” Mr. Wu. said. “This acquisition does speed up the pace.” The U.S. jewellery industry is also consolidating as stores face online challengers such as Blue Nile Inc., Ken Gassman, president of the Jewelry Industry Research Institute, told Bloomberg. Mr. Wu said the deal potentially allows to roll out its brands north of the border and providing Zale with access to “best in class” management. “It really gives Signet an entry way into the Canadian market,” he said. “I wouldn’t be surprised if Signet uses some of the real estate it currently has in Canada and potentially convert some of the underperforming Mappins stores into potentially a Kay store or a Jared store…. which I think would be very well-received.” With files from Bloomberg
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Survey data sheds light on Indigenous languages, traditional activities across North
Less than one in 10 Indigenous Yukoners can speak or understand an Indigenous language, and young people across the North were far less likely to understand even a few words than their parents' generation.
That is one among many observations given new weight by data from the 2017 Aboriginal Peoples Survey released this month.
The survey sampled more than 45,000 Indigenous people from across Canada to make educated estimates about everything from literacy rates to sexual health among Indigenous people. Much of the data it produces is not covered by ordinary census questions.
Datasets released in this month give estimates of how many Indigenous people speak or understand Indigenous languages and participate in traditional activities like hunting and crafting.
The data shows a stark generational and gender divide in several areas, and very uneven outcomes across Canada’s three northern territories.
Nunavut leads in language fluency
Aggregated data for all three territories shows about half of Indigenous northerners can speak or understand an Indigenous language “very well or relatively well.” But those speakers are unevenly distributed across the North.
While more than three-quarters of Indigenous Nunavummiut said they could speak an Indigenous language well, and more than 80 per cent could understand one, in Yukon, barely one in 10 people could claim the same.
More than a third of Indigenous Yukoners said they could neither speak nor understand an Indigenous language. The N.W.T. did not fare much better, with just under 15 per cent of respondents saying they could speak their language well.
Those numbers got significantly worse as the respondents got younger — even in Nunavut, where fluency is high. While nearly 95 per cent of Nunavummiut over 55 could speak their language well, less than 60 per cent of those aged 15 to 24 could claim the same.
The N.W.T. also saw a generational divide. Thirty-four per cent of Indigenous people over 55 could speak their language well — but less than 10 per cent of under-55s said the same.
Yukon was worst of all, with less than one in 20 Indigenous people aged 25 to 54 speaking a language fluently. Virtually no one under 25 claimed they could speak the language very well.
Gender divide in traditional activities
More positively, the new survey data also sheds light on traditional activities, which it shows are still an important part of northern life.
Nearly 60 per cent of Indigenous northerners said they hunted, fished, or trapped in the last 12 months, with the lowest percentage in the N.W.T., where 46 per cent did so.
Nunavummiut were the most prolific harvesters, with nearly half saying they hunted, fished or trapped once a week, compared with less than a quarter in Yukon and the N.W.T. who said the same.
In all three territories, gathering wild plants was also a common activity, with more than a third of Indigenous northerners and nearly half of Indigenous Yukoners taking part.
In most places, younger generations were just as likely as their parents to have hunted, fished, trapped, or gathered in the past year.
Most often, Indigenous people hunted and gathered for their own family’s use. But more than 40 per cent of Indigenous Nunavummiut said they also did so to share with their community — compared with just a quarter of Indigenous people in Yukon and the N.W.T.
The survey also asked whether respondents had made clothing, footwear, jewellery, or other artworks recently.
Here, too, Nunavut came out ahead. More than a third of Indigenous Nunavummiut said they had made clothing in the last 12 months, compared with less than one in five in Yukon and the N.W.T.
But the tables were turned when it came to making jewellery, carvings, and other art. A quarter of Yukon respondents said they had done so in the last 12 months, compared to around 16 per cent of other northerners.
The survey showed how a strong gender divide still exists when it comes to who does these traditional activities.
Men were more likely to hunt, fish, or trap, while women were far more likely to gather plants or craft clothing. But both genders were equally likely to produce jewellery, carvings, or other art.
Another thing revealed by the survey results: these traditional activities are not big earners — or, at least, that’s not why people do them.
Less than 10 per cent of respondents said they harvested or crafted to supplement their income. Most of those who did so were in Nunavut.
The survey offers a statistical grounding for many long-observed facts of Indigenous life. In Nunavut, Yukon, and the N.W.T., Indigenous leaders have long voiced concerns about the lack of language proficiency among young people.
But the data also suggests young people are still being encouraged to pick up traditional activities, and shows how both practical and cultural considerations are strong motivations to keep traditions like hunting and sewing alive.
Flexiti Launches Buy Now Pay Later Financing at Sleep Country and Dormez-vous
Sleep Country Canada and Dormez-vous customers are now eligible for Flexiti’s buy now pay later solution. Customers can apply for a FlexitiCard TM in-store at one of 280 retail locations across Canada and will receive a response within minutes. Upon approval, the FlexitiCard can immediately be used to make purchases. This fully automated and 100% paperless process offers qualified customers a revolving credit line and flexible payment plans with 0% interest financing 1 options, eliminating the need to reapply for financing for future purchases. Sleep Country Canada and Dormez-vous customers will also be able to apply and make purchases with their FlexitiCard online at sleepcountry.ca and dormezvous.com in the second quarter of 2021.
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“Our omni-channel approach provides Canadians convenient buying options to match their preferred choice of how, when and where to shop for sleep essentials,” said Stewart Schaefer, Chief Business Development Officer, Sleep Country Canada. “Our new partnership with Flexiti enables us to now offer more choice on how Canadians choose to purchase the right products to meet their sleep needs. Flexiti’s on-demand 0% financing solution provides an added level of financial comfort for our customers and ensures more Canadians can have instant access to the right sleep products.”
“We couldn’t be happier to welcome Sleep Country Canada and Dormez-vous stores into the Flexiti network,” said Peter Kalen, Founder and CEO of Flexiti. “Sleep Country’s dedication to providing excellent service and products to their customers makes them a highly respected national retailer. We are proud to partner with Sleep Country to achieve a shared goal of helping Canadians find their best sleep and rest easy knowing their purchases can be made more affordable through financing.”
1 O.A.C. Terms and conditions apply.
About Sleep Country Canada
Sleep Country is Canada’s leading omnichannel mattress and bedding retailer and the only specialty sleep products retailer with a national bricks and mortar footprint and online presence. Sleep Country operates under three retail banners (the “Banners”): “Sleep Country Canada”, with omnichannel operations in Canada excluding Québec; “Dormez-vous?” with omnichannel operations in Québec and “Endy”, Canada’s leading online mattress-in-a-box retailer. As of March 10, 2021, Sleep Country has 283 stores and 17 distribution centres across Canada. All of the Company’s stores are corporate-owned, enabling it to develop and maintain a strong culture of customer service, resulting in a consistent and superior in-store and home delivery experience. Sleep Country also works closely with Canadian charities to donate new and gently used mattresses to families and children in need. For more information, visit www.sleepcountry.ca or www.dormezvous.com
About Flexiti
Flexiti is one of Canada’s fastest-growing point-of-sale lenders, offering customers 0% interest financing at retailers that sell big-ticket goods like furniture, appliances, jewellery and electronics. Through its award-winning buy-now-pay-later platform, customers can be approved instantly to shop with their FlexitiCard®, which they can use online or in-store to make multiple purchases, within their credit limit, without needing to reapply. Accepted at nearly 6,000 locations and ecommerce sites across Canada including The Brick, Leon’s, Staples, Sleep Country, Wayfair, Birks and Peoples Jewellers, Flexiti aims to make our customers’ lives more affordable and help our retail partners grow their sales by offering flexible financing options.