Sterling Jewelers
| Company type | Subsidiary |
|---|---|
| Industry | Jewelry retail |
| Founded | 1910 |
| Founder | Henry Shaw |
| Headquarters | Fairlawn, Ohio , United States |
Area served | United States |
| Parent | Signet Jewelers Limited |
Sterling Jewelers, Inc. is a U.S.-based specialty jewelry retailer with its main office located in Fairlawn, Ohio, a suburb of Akron. Established in 1910 by Henry Shaw, who is the father of the current chairman emeritus Jerry Shaw, the company traces its origins back to LeRoy's Jewelers in Lorain, Ohio. Sterling Jewelers operates as a fully owned subsidiary of the UK-headquartered Signet Jewelers Limited, which is publicly traded on the New York Stock Exchange under the ticker SIG, having been acquired in 1987.
History
Signet Jewelers manages a network of specialty jewelry retail outlets throughout the United States, United Kingdom, Canada, the Republic of Ireland, Puerto Rico, and the Channel Islands. Roughly 78% of Signet’s revenue is generated by twelve U.S.-based store brands, including Belden Jewelers, Goodman Jewelers, JB Robinson Jewelers, JamesAllen.com, Jared, Kay Jewelers, Le Roy's Jewelers, Marks & Morgan Jewelers, Osterman Jewelers, Rogers Jewelers, Shaw's Jewelers, Weisfield Jewelers, among others.
Within the U.S. jewelry market, Sterling ranks second with a 4.2% share overall and dominates the specialty jeweler category holding 8.8% of that segment.
Since 2009, Sterling has been an official corporate partner of St. Jude Children's Research Hospital, having donated over $90 million by 2015 to support its research and facility development.
In February 2014, Signet expanded its reach by acquiring competitor Zale Corporation for $1.4 billion in cash (equivalent to $21 per share), forming a company valued at $6.2 billion. Further growth occurred in August 2017 when Signet purchased R2Net—the operator of online jeweler JamesAllen.com—for $328 million. These strategic acquisitions enhanced Signet’s presence in both physical retail and digital jewelry markets.
Sex discrimination and sexual harassment proceedings
Sterling Jewelers is confronted with a class arbitration suit filed by approximately 69,000 female employees and former employees alleging sexual harassment and gender discrimination. In 2017, The Washington Post published reports highlighting affidavits from around 250 workers who accused male supervisors at Kay Jewelers and Jared the Galleria of Jewelry of inappropriate touching, derogatory remarks, and demands for sexual favors tied to career advancement and salary increases. CEO Mark Light along with other senior executives were implicated in these claims. The plaintiffs also allege systemic issues related to unequal pay and promotion practices disadvantaging women. Sterling Jewelers contests these accusations.
In addition, the Equal Employment Opportunity Commission (EEOC) brought sex discrimination charges against Sterling in 2008. By May 2017, Sterling resolved these charges through a consent decree without admitting liability or providing monetary compensation. The agreement mandated the implementation of enhanced anti-discrimination policies and the appointment of an independent monitor to assess compensation and promotion procedures. This resolution does not affect the ongoing class action lawsuit.
Credit card practices case
On January 16, 2019, Sterling Jewelers agreed to an $11 million settlement with the Consumer Financial Protection Bureau following an investigation uncovering breaches of the Consumer Financial Protection Act of 2010. The probe found that customers were enrolled in store credit accounts and payment-protection insurance plans without their consent and that credit card accounts were opened without customer applications in violation of the Truth in Lending Act. Although Signet Jewelers Ltd., Sterling’s parent company, denied wrongdoing, it consented to resolve the matter through this settlement.
Store closures
In April 2019, Sterling Jewelers revealed intentions to shut down 150 outlets, focusing mainly on mall-based stores experiencing low customer traffic or those with brand redundancies within its portfolio, including Kay and Zales. This move was part of a strategic initiative to streamline and enhance its retail presence.
Further reading
- "The Company That Sells Love to America Had a Dark Secret", authored by Taffy Brodesser-Akner, April 23, 2019, The New York Times