Week 6 Portfolio Project Actual Notes for Paper:
History and Current Information:
Zale Corporation is a leading specialty retailer of diamonds and other jewelry products in North America, operating
approximately 1,900 retail locations throughout the United States, Canada and Puerto Rico, as well as online.
In 1920 Morris and William Zale have a vision: Provide customers with quality merchandise at the lowest possible price.
The vision becomes reality with the opening of the first Zales Jewelers store in Wichita Falls, Texas, on March 29, 1924.
Inventory includes small appliances, cameras and cookware, in addition to jewelry. In 1925 The Zale brothers launch a
revolutionary marketing strategy with a credit plan of “a penny down and a dollar a week,” making jewelry and other
merchandise affordable to the average working American. In 1957 Zale Jewelers broadens its reach, opening the first
store in a shopping center – a major shift from operating only in downtown locations. The same year, Zale announces the
initial public offering of its stock (ZLC) and begins trading its public shares on the American Stock Exchange the
following year. In 1992, Zale Corporation files for Chapter 11 bankruptcy, but emerges the following year as a
financially stronger company after restructuring its debt. Five years later, annual sales top 1.3 billion, showing profit in
all four quarters for the first time since the reorganization. In 2000 Zale expands with two major acquisitions: peoples
Jewellers of Canada and Piercing Pagoda. In 2007 Zale expands its e-Commerce business with the launch of
. To better focus on the core business and increase returns on capital, Zale divests the Baily
Banks & Briddle brand. In 2010 Zale continues to expand its e-Commerce business with two significant launches:
pagoda.com, providing an online presence for Piercing Pagoda, and peoplesjewellers.com, bringing multi-channel
shopping to consumers across Canada.
Moving the headquarters: starts in Wichita Falls, moves in 1946 to Dallas, moves in 1984 to Irving Texas
The Company competes in the retail jewelry industry by leveraging its established brand names, economies of scale and
geographic and demographic diversity. Zale’s business has changed significantly over the past few years. The Company
has closed a total of 265 underperforming locations during the last two fiscal years, of which 198 were fine jewelry
stores and 67 were kiosks. In May 2010 Zale entered into an agreement with Toronto – Dominion Bank to administer the
Company’s private label credit card program for its brands in Canada. In September 2010, Zale entered into an
agreement with Citibank to provide the private label credit card program for Zales, Zales Outlet and Gordon’s brands in
the United States.
Mission, Vision, and Values Statement: