We are, through our wholly owned subsidiaries, a leading specialty retailer of fine jewelry. At July 31, 2009, we operated 1,247 specialty retail jewelry stores and 684 kiosks located mainly in shopping malls throughout the United States of America, Canada and Puerto Rico.
We were incorporated in Delaware in 1993. Our principal executive offices are located at 901 W. Walnut Hill Lane, Irving, Texas 75038-1003. Our telephone number at that address is (972) 580-4000, and our internet address is www.zalecorp.com.
During the fiscal year ended July 31, 2009, we generated $1.8 billion of revenues. We believe we are well-positioned to compete in the approximately $63 billion U.S. and Canadian retail jewelry industry, leveraging our established brand names, economies of scale and geographic and demographic diversity. We have significant brand name recognition as a result of each of our brands' long-standing presence in the industry and our national and regional advertising campaigns. We believe that brand name recognition is an important advantage in jewelry retailing as jewelry products are generally unbranded and consumers must trust in a retailer's reliability, credibility and commitment to customer service.
Our business has changed significantly over the past few years. In November 2007 we sold our Bailey Banks & Biddle brand to Finlay Enterprises, Inc. This enabled us to better deploy our capital and to focus on our core brands. We have closed a total of 191 underperforming locations during calendar year 2009, of which 160 were fine jewelry stores and 31 were kiosks. Finally, throughout fiscal 2008 and fiscal 2009 we implemented various inventory and cost reduction initiatives designed to better position us going forward.
We report our operations under three business segments: Fine Jewelry, Kiosk Jewelry and All Other. An overview of each business segment follows below. During fiscal year 2009, our Fine Jewelry segment generated $1.5 billion, or approximately 86 percent of our revenues. During fiscal year 2009, the Kiosk Jewelry segment revenues represented approximately $233 million, or approximately 13 percent of our revenues.
Our Fine Jewelry segment is comprised of five brands focused on the value-oriented consumer. Each brand specializes in fine jewelry and watches, with merchandise and marketing emphasis focused on diamond products. Additionally, each brand differentiates itself through a selection of exclusive product, marketing, store design and customer experience. Our centralized merchandising and sourcing organizations create significant synergies. The merchant team is focused on building compelling merchandise assortments and the sourcing team is focused on partnering with vendors that provide reliable delivery of quality merchandise at a reasonable cost. Zales Jewelers® is our national brand in the U.S., providing jewelry to its value-oriented customers. We have further leveraged the brand strength through Zales Outlet®, which focuses on a slightly higher-income female customer in outlet malls and neighborhood power centers. Gordon's Jewelers® is a value-oriented regional jeweler that caters to local fashion styles within each market and emphasizes customer relationships. Peoples Jewellers® is Canada's largest fine jewelry retailer that offers customers an extensive assortment of affordable fine jewelry and a comfortable, accessible shopping experience. Mappins Jewellers®, which is positioned as a regional jeweler similar to Gordon's in the U.S., offers Canadian customers a broad selection of merchandise in a range of price points from engagement rings to fashionable and contemporary fine jewelry. In addition, we have made a strategic decision to expand our business for the Zales and Gordon's brands through the e-commerce sites, zales.com and gordonsjewelers.com.
Zales Jewelers and Gordon's Jewelers
Zales, our U.S. based flagship, is a leading brand name in jewelry retailing in the U.S., operating 693 stores in 50 states and Puerto Rico with an average store size of 1,687 square feet. Gordon's operates 202 stores in 31 states and Puerto Rico with an average store size of 1,524 square feet.
Zales is positioned as "The Diamond Store Since 1924" given its emphasis on diamond jewelry especially in the bridal and fashion segments. The Zales brand complements its merchandise assortments with promotional strategies to increase sales during traditional gift-giving periods and throughout the year. We believe that the prominence of diamond jewelry in our product selection and Zales' reputation for customer service for over 85 years fosters an image of product expertise, quality and trust among consumers.
Gordon's was founded in 1905 and its customer shares similar demographic characteristics with the Zales customer. Accordingly, we have taken steps to position the brand to leverage our corporate strengths. By centralizing the organizational structure, we have eliminated redundancies between Zales and Gordon's resulting in increased communication and consistency which will further strengthen the performance in both brands.
Zales Jewelers' and Gordon's Jewelers' combined revenues accounted for approximately 63 percent of our total revenues, with an average transaction value of $403 in fiscal year 2009. Additionally, both brands operate as multi-channel retailers and serve internet customers through e-commerce sites zales.com and gordonsjewelers.com, which accounted for approximately three percent of our total revenues in fiscal year 2009. Internet sales totaled $56.2 million in fiscal year 2009 compared to $55.7 million in fiscal year 2008.
Peoples Jewellers and Mappins Jewellers
In Canada, we operate 212 stores in nine provinces and enjoy the largest market share of any specialty jewelry retailer in Canada. Canadian operations consist of two brands, Peoples Jewellers and Mappins Jewellers, and accounted for approximately 14 percent of our total revenues in fiscal year 2009. The average store size is 1,603 square feet with an average transaction value of $268 in fiscal year 2009.
Peoples Jewellers and Mappins Jewellers are two of the most recognized brand names in Canada. Peoples was founded in 1919 and offers jewelry at affordable prices, attracting a wide variety of Canadian customers. Using the trademark "Peoples, the Diamond Store" in Canada, Peoples emphasizes its diamond business while also offering a wide selection of gold jewelry, gemstone jewelry and watches. Since 2000, the Peoples brand has built recognition through an aggressive television campaign. Over the past five years, Peoples had the largest television campaign of any Canadian jewelry retailer. Mappins Jewellers differentiates itself by offering exclusive merchandise primarily in its bridal assortments.
We operate Zales Outlet with stores in 36 states and Puerto Rico, sales from which accounted for approximately nine percent of our total revenues in fiscal year 2009. The average store size is 2,337 square feet, with an average transaction value of $464 in fiscal year 2009.
The outlet concept has evolved into three differentiated formats: power strip centers, traditional outlet malls and destination centers. Our stores feature items in every major jewelry category including branded watches, gemstones, gold merchandise, and diamond fashion and solitaire products. The merchandise assortment in a typical Zales Outlet store caters to the higher-income, female customer, offering 20 to 70 percent off traditional retail prices. We have grown our Zales Outlet concept over the past ten years from four stores in 1998 to the 140 stores in operation at the end of fiscal year 2009.
Although Zales Outlet was established as an extension of the Zales brand and capitalizes on Zales' national advertising and brand recognition, Zales Outlet offers its own unique product assortments and augments this with promotional efforts that are geared specifically to the outlet consumer and are consistent with the "off-mall" location.
The Kiosk Jewelry segment operates under the brand names Piercing Pagoda®, Plumb Gold™, and Silver and Gold Connection® (collectively, "Piercing Pagoda") through mall-based kiosks, and targets the opening price point jewelry customer. At July 31, 2009, Piercing Pagoda operated 684 locations in 41 states and Puerto Rico. The Kiosk Jewelry segment specializes in gold and silver products, including entry level diamond merchandise, that capitalize on the latest fashion trends.
At the entry-level price point, the Kiosk Jewelry segment targets a young, fashion forward customer. The Kiosk segment offers an extensive collection of bracelets, earrings, charms, rings, and 14 karat and 10 karat gold chains, as well as a selection of silver and diamond jewelry, all in basic styles at moderate prices. In addition, trained associates perform ear-piercing services on site.
Kiosks are generally located in high traffic areas that are easily accessible and visible within regional shopping malls. The kiosk locations average 188 square feet in size, with an average transaction value of $39 in fiscal year 2009.