The company began in 1924 in Wichita Falls, Texas, when the two Russian-Jewish immigrant brothers Morris (M. B.) Zale and William Zale (born Zalefsky), along with Ben Lipshy opened the first Zales Jewelers store[5] (now a division in the multi-division company).
As a marketing strategy, the Zale brothers instituted a credit plan whereby customers could pay "a penny down and a dollar a week", making jewelry and other merchandise affordable for the average working American. The success of this credit policy led to the company expanding to a total of 12 stores in Oklahoma and Texas by 1941. Zales Jewelers moved its headquarters from Wichita Falls to Dallas in 1946. In 1998, online shopping was opened at www.zales.com.
Corporate restructuring
In 1957, Zales Jewelers opened its first store in a shopping center—a major shift from operating only in downtown locations. The same year, Zales announced the initial public offering of its stock (ZLC) and began trading its public shares on the American Stock Exchange in 1958. In 1989, Zale acquired Gordon's Jewelers, which had been a major competitor.[6] Zales bought the Skillern Drug pharmacy chain in the 1960s, but sold it in 1980.[7]
In February 2014, Signet Jewelers agreed to buy Zale Corporation, with Zale shareholders receiving US$21 a share in cash in US$1.3 billion deal.[11] The merger created a $6.2 billion firm.[11]
In January 2017, Zales announced it would close a handful of its mall stores when the leases expire, to avoid duplication with former rival Kay Jewelers.[12]
In 2018, the company moved its headquarters to a new building in Coppell, Texas.[citation needed]
