Signet Jewelers to Acquire R2Net, Parent of JamesAllen.com
Signet Jewelers announced its plans to acquire e-commerce diamond company R2Net, parent company of JamesAllen.com, a millennial-friendly online diamond shop. Bloomberg reports the corporate parent of the Kay and Zales jewelry chains has agreed to pay about $328 million for the acquisition. News of the deal came as Signet Jewelers surprised investors with an increase in same-store sales. The acquisition helps Signet become a stronger player in the e-commerce space, a channel it has struggled to gain traction in.
Total Retail’s Take: This would appear to be a wise investment for Signet. By acquiring JamesAllen.com, Signet gains access to new audiences (i.e., millennials) as well as new technology. James Allen has developed features such as interactive videos of each of its diamonds and 360-degree HD images of the jewels that customers can zoom in on to see intricate details. The acquisition furthers Signet's omnichannel strategy as well as it customer acquisition efforts.