Archive for February, 2008
Jewelry Chain Zales Looks to Cut More Costs
Wall Street Journal
By VERONICA DAGHER
February 27, 2008 12:08 p.m.
Zale Corp. will cut about 20% of its headquarters work force and close 23 more stores as the company continues its restructuring amid a weakened economic environment.
The news sent shares higher, rising $1.87, or 10%, to $19.76 in morning trading on the New York Stock Exchange.
The jewelry retailer is seeking to generate more than $65 million in annual cost savings beginning in its fiscal fourth quarter, which starts in May.
Zale’s latest move includes cutting some 225 filed and open positions at its Dallas headquarters. The latest round of store closings puts the total at about 105 and would leave Zale with about 2,145 locations.
President and Chief Executive Officer Neal Goldberg said the plan “builds upon steps we have already taken to reduce redundancies, simplify processes and create a more agile company, such as the realignment of our merchandise and sourcing organizations.” He noted last week that Zale would cut excess inventory by $100 million.
Chief Administrative Officer Rodney Carter said last month Zale would close 60 unprofitable Zales, Gordon’s and Piercing Pagoda locations by April and “several dozen more” later this year.
Zale’s has struggled in recent years, going through several CEOs. Betsy Burton, a board member at Zale since 2003, took the helm two years ago amid weakening profits and a push to go more upscale, a decision that alienated customers and resulted in the resignation of Mary Forte. Burton departed in December and was replaced by Neal Goldberg, who was formerly at Children’s Place Retail Stores Inc.
Last month former Securities and Exchange Commission Chairman Richard Breeden raised his stake in Zale to 18% and said there were “major opportunities for Zale to strengthen its profitability.” He was named to the company’s board last month.
Write to Veronica Dagher at AskNewswires@dowjones.com
February 28th, 2008
Local jewelry designer calls Oscar trip a success
Canada.com, Canada
Trevor Newell, Leader-Post
Published:Â Monday, February 25, 2008
At least one Canadian walked away from the Academy Awards a winner.
Rachel Mielke, founder of the Regina company Hillberg & Berk, spent several days in Los Angeles, where she showed her jewelry designs to Hollywood celebrities prior to Sunday’s ceremony. In a phone interview on Monday, she said the trip was well worth it.
“It was even better than I had hoped for,” she said. “I didn’t get to check out much of the Oscar party scene, but I was down here to accomplish a goal.”
Mielke was able to generate a lot of interest in
her designs during her time in California. NBC correspondent Jinah Kim, who interviewed the stars as they arrived for the ceremony, wore Hillberg & Berk earrings and a bracelet on the red carpet.
“It really did surpass my expectations. I was trying not to expect too much,” Mielke said.
According to Mielke, she was able to meet with a number of actors who were interested in her designs.
“(They) liked the jewelry so much they were hoping that their (television) characters could wear it,” she said.
Celebrities including Deidre Hall of Days of Our Lives, Mario Lopez from Saved by the Bell and Dancing with the Stars and filmmaker Spike Lee all took home some of Mielke’s designs. Katie Couric’s stylist also picked up some jewelry for the CBS News anchor.
Mielke hopes that this won’t be the last time her work appears at a Hollywood gala.
“I talked to (celebrities) about making red-carpet pieces for future events,” she said.
The group that hosted Mielke in Los Angeles last week also talked with her about attending the next Sundance Film Festival in Utah, she said.
“There’s definitely going to be future opportunities that come out of it,” she added.
But it wasn’t just celebrities who showed an interest in Mielke’s work. She said she spoke to a buyer for a high-end retailer that has stores in New York and Los Angeles who appeared interested in carrying Hillberg & Berk. Mielke expects that the exposure generated by her trip will help sales at home, too.
“(The trip) has really been awesome for our brand in terms of elevating it,” she said.
As she prepared to return to Regina, she was able to put her Oscar experience into perspective.
“(It was about) getting to meet some really cool celebrities and having great feedback from the collection and getting lots of promotion,” she said. “That was my trip in a nutshell.”
tnewell@leaderpost.canwest.com
February 26th, 2008
Newstar offers fine jewelry and service
Joliet Herald News, IL
February 24, 2008
From submitted reports
Newstar Jewelers, one of the area’s largest and most successful jewelers, continues to remain in the forefront with outstanding quality and knowledgeable and professional service.
Newstar was founded on the concept of selling only the best fine jewelry and backing sales with service to match. Whether it’s purchasing that important piece, or having a well-loved piece repaired, the experts at Newstar stand ready to help.
This year, the store has a new face lift for Newstar’s 110th anniversary. New signs have been installed for a cleaner, brighter look and they feature some designer lines. The signs will be changed periodically to show new products.
Newstar Jewelers is located at 2417 W. Jefferson St. in Joliet.
John Patsch/Staff Photographer
Service continues to be an important part of Newstar’s business. To keep up with current innovations, this year our Master Jeweler, Theresa Murphy, and Jewelry Designer, Rebecca Marshall, traveled to Las Vegas for extensive seminars on the latest cutting-edge technology to keep Newstar ahead of the competition.
Starweld laser
Going on the third year of having a Starweld laser machine, the jewelers have been able to utilize it in more ways than you can imagine. It has helped them create custom pieces that would not have been possible before. Dan Haake said: “Using the laser for certain repairs can cut the labor time in half, therefore allowing us to save the customer money. We are the only jeweler in the area with this technology, which puts us a step above other repair shops. It is a demonstration of our commitment to our customers and caring for their fine jewelry. Stop in and let our jewelers help you with your repair or unique custom design.”
Newstar also has added even more designer lines to bolster the store’s already impressive array of fine jewelry.
This year with yellow and rose gold making a huge come back Newstar has taken on the Roberto Coin line. It is a beautiful and well-known Italian ladies fashion line of gold and diamond jewelry.
They say what kind of watch you wear says a lot about a person. Newstar has added a large array of especially fine watches. Newstar added Ebel, a line of watches from Switzerland, long known as the home of timepieces.
“Ebel is a fine Swiss watch company that’s been around since 1911, and we are delighted to carry these watches.” Ellen Haake said. “Ebel makes mostly women’s watches. For the men, the Breitling line continues to be popular. Breitling also makes women’s watches, but the men’s watches are especially sought after. We have expanded our Breitling line to include the Bentley by Breitling. It is an extension to the Breitling line for the most discriminating watch buyer. Larger models and very fashionable models are available in solid rose and yellow gold.”
Newstar’s impressive designer lines also are being expanded. “‘Simon G’, one of our most requested designer lines, is now featuring colored diamonds and rose gold. This exciting designer does everything from engagement rings to earrings as well as men’s jewelry.” Ellen said, “We are one of the largest Simon G dealers in the Midwest.”
Naperville store
“Last year was the seventh year in our Naperville store, and we are very pleased that the location is now well established in that market.” Dan said, “Not only do our Joliet shoppers recognize the advantages of coming to Newstar, but so do shoppers in Naperville as well.
“The Naperville location has an amazing computerized engraving system that can engrave text or even logos on almost any surface, as well as do glass etchings. This service is perfect for personalizing glassware for weddings or even wine bottles to be given as a special gift. The computer can make text small enough to engrave entire poems or other lengthy personalized messages.
“Due to such great response last year from art teachers and young artists surrounding our Joliet and Naperville stores, we proudly announce our second annual ‘Honor your Mother’ contest. All kids ages 4 to 8 and 9 to 12 are invited to send us your best drawing. Our staff will vote on our favorite two, one from each age group. Winning pictures will be used as inspiration for a piece of 14kt jewelry, set with the artist’s birthstone, to be given to their mother. Watch for more details in the local newspapers and from your teachers, or check out our new Web site at www.newstarjewelers.net.”
February 25th, 2008
Arty by nature
Sisters cast jewelry line from seeds, sticks, and beans
Heather Goodwin loves winter.
Boston Globe, United States
“When the trees are bare they all look like big twig necklaces to me,” the 35-year-old silversmith said.
Goodwin means that literally. Goodwin and her twin sister, Kerry Alice Collins, are the duo behind the unique Nahant-based jewelry line Twigs & Heather. Using wax and burnout casting methods, the sisters make sterling silver necklaces, bracelets, and earrings from the sticks, bark, and seeds they collect around New England.
It is jewelry for the true nature lover: Birch bark curls into a wide cuff bracelet; rippled maple seeds dangle from earrings; and small acorns bob along a silver chain.
“You’ll see us at night with backpacks and big scissors looking for twigs,” Collins said, laughing. The twins both have easy laughs; they speak over each other and finish each other’s thoughts.
“I’m constantly looking up to find the right trees to use,” Goodwin said. “We’re always outside.”
To make their one-of-a-kind pieces, the sisters put organic objects onto wax rods in heat-resistant plaster. Slowly they heat the mold until the wax and natural material burn out, leaving a recess in the plaster. Finally, melted silver is poured into the mold, creating a near-perfect replica of the original.
When the sisters work on custom orders they are actually preserving moments in time, memories. Goodwin and Collins gush about a man who asked for a twig necklace made from the tree under which he and his girlfriend fell in love. Then there was the mother (apparently with a sense of humor) who asked them to cast the shriveled black beans her toddler stuck up his nose. Goodwin made her husband’s birch bark wedding band.
Although the sisters were always artistic, they got into casting by chance. After graduating from Swampscott High in 1990, they enrolled at Northeastern University, but both quickly realized college wasn’t for them.
“I was this weird punk rocker who should’ve gone to art school,” Collins said. “We stuck out like sore thumbs at college.”
They dropped out after a year. Collins worked at the Army Barracks on Newbury Street, sewing and making clothes and bags. Goodwin waited tables and landed an apprenticeship with Amory Casting. She liked working with her hands, so continued waitressing until she had enough money to buy a kiln and other casting supplies.
They launched Twigs & Heather in 2000, but it wasn’t until last spring that they found a house in their hometown of Nahant with a basement space perfect for a studio.
In addition to their nature pieces (they also work with sea glass), Collins has launched an edgier line of jewelry that features skulls, hearts, and rabbits. Prices range from $40 to over $300. Twigs & Heather is available at etsy.com and locally at Magpie in Somerville and Turtle in the South End.
“We don’t meet many other women casters,” Goodwin said. “We are proud that we melt the metal, that we do all the work on our pieces from designing to finishing.”
February 22nd, 2008
Parties provide golden opportunity to unload old jewelry
Arizona Republic, AZ
Women bring chains, mismatched earrings to house parties to sell gold by the ounce
Kimberly Lifton
Detroit Free Press
Feb. 20, 2008 12:00 AM
Move over, Tupperware. The suburban house party is turning to gold.
As gold hits record prices above $900 an ounce, hordes of Detroit residents, mostly women, are flocking to private house parties to sell their broken gold chains, mismatched earrings, class rings and other gold jewelry they no longer wear.
Bring gold; take home cash.
“It is found money,” said house-party proprietor Gail Kenny of Grosse Pointe Shores, Mich. “It’s a bad economy … People are looking for a way to get cash.”
Two months ago, Kenny, a veteran jewelry manufacturer’s representative, launched Michael David, a company that buys gold from guests of private house parties. To date, Michael David has sponsored four parties and booked more.
Kenny’s partygoers come from “every walk of life,” including stockbrokers, corporate executives, salespeople and opticians. Other proprietors have joined in this seemingly trendy, low-profile business model and have held parties in Detroit suburbs.
The business concept came to Kenny while she was trying to unload a gold Tag Heuer watch she never wore on eBay.
As the price of gold soared, she decided to scrap the watch instead. Kenny invited friends to bring their gold to her house, where she weighed it on a troy-ounce scale and sent a package directly to a precious-metal refiner she knew in New York. To her amazement, the watch drew $3,000.
“I knew this was an opportunity,” Kenny said.
Here’s how it works: A private house-party proprietor like Kenny books a party with a hostess, who invites people to her home for the party.
At a party, the proprietor inspects the gold and weighs it. If the gold is 10, 14 or 18 karat, the guest gets cash on the spot.
The proprietor resells the gold to a jewelry store, precious-metal dealer or refinery. Kenny says she has averaged $2,000 per party, and her hostesses have earned up to $500 each.
Registered nurse Liz Cheek pocketed $550 from hosting a recent party at her home in Keego Harbor, Mich., and selling old chains and class rings. She said her guests each left with at least $240 from gold sales.
“If it has no sentimental value and you are not wearing it, this is the time to turn it in,” she said.
The amount a seller gets depends on the quality of the gold: 24-karat gold is almost 100 percent pure and commands the highest price, though it is rarely marketed in the U.S. The next, 18-karat gold, is about 75 percent pure; 14-karat, 58.50 percent pure; and 10-karat, 41.7 percent pure.
For the past month, businesses have been paying between $9 and $10 a gram for 14-karat gold - the most common purity level in the United States, according to John Abbott of Abbott Corp., a rare-coin and precious-metal dealer in Birmingham, Mich.
Gold has more than tripled in price in the past seven years. It hasn’t been this strong since 1980, when it peaked at $850 an ounce before descending for 20 years. Futures trading this month on the New York Mercantile Exchange indicate that prices for gold will continue to rise through December 2009.
February 20th, 2008
Used Rolex Watches: San Francisco Jewelry Expert Endorses National Study –“Even Luxury Shoppers Prefer Bargain-Hunting,†he says
WebWire (press release), GA
WEBWIRE – Monday, February 18, 2008
SAN FRANCISCO, CA – February 18, 2008 — A San Francisco used Rolex watches authority says Neiman’s and Nordstrom are nice but he’ll stand by the results of a recent national study that shows even buyers of high-end items like Rolex watches are looking for the same thing in a shopping experience as plain ‘ole Joe Six-Pack.
And what is that? “The best price possible,†answers Avi Dayan who owns 18-year-old A&E Watches.
Dayan cites a recent poll conducted on behalf of luxury fashion trade magazine, “Women’s Wear Daily,†by Manhattan-based Global Strategy Group. In the survey, poll-takers interviewed women shoppers, “but those of us in the luxury jewelry business know that when it comes to shopping – men feel as strongly about obtaining the best price as women do, maybe even more so.â€
When most people think of buying Rolex watches, says Dayan, “they see themselves shopping at Tiffany’s or some other high-end store. Yet, the reality is, savvy shoppers in the market for expensive items like Rolex watches are just as likely to be hanging out at the website of a reputable used Rolex watches dealer – or in the secure, simple brick-and-mortar showroom where that jeweler conducts business. That’s what makes these rich people smart – not just rich.â€
The Women’s Wear Daily survey queried 2,500 women around the country about their shopping behaviors when they buy fashion goods. Almost 500 of those polled were considered luxury shoppers – people whose household incomes exceeded $250,000.
“As a jeweler who specializes in selling used Rolex watches, the most interesting thing about this poll rests with the following findings,†says Dayan.
• Luxury shoppers see themselves as style gurus and demand high quality
• YET . . . 95% of those luxury shoppers surveyed said high quality does not necessarily mean high prices.
Dayan says findings in the Women’s Wear Daily survey “are on-target with what we know about buyers of used Rolex watches. Many people think the only kind of person interested in buying a used Rolex watch is someone who can’t afford a new one, but as this study so aptly points out, that just isn’t so.â€
Dayan says the wealthy used Rolex shoppers who frequent his online store (www.aandewatches.com) and his brick and mortar store in the San Francisco Jewelry Mart “believe it’s crazy to go to a fancy store and buy a brand-new Rolex. They realize how much a new Rolex watch depreciates almost immediately.
“In this respect,†he says, “buying a new Rolex watch is much like buying a new car. The minute you drive it off the lot there goes 25 to 30 percent of its value. Likewise, the minute you write the check and slip a new Rolex watch on your wrist, the value nosedives.â€
The San Francisco jeweler said another discovery in the Women’s Wear Daily poll “is the fact that luxury shoppers know it is brand that counts – not price.
“If they can buy the brand they want; they will look around until they can find it at the great price. This poll is one more reminder that celebrity lines do not sell to wealthy shoppers,†says Dayan. “Savvy, wealthy shoppers turn their noses up at trendy, pop-idol brands.â€
“Neiman’s and Nordstrom are nice – for some purchases, says Dayan, “but one of the biggest secrets rich people keep is that they purchase used Rolex watches – not new ones. No one can spot a used Rolex watch on your wrist,†says Dayan, “if it’s purchased from a reputable dealer.â€
For more information about value shopping and used Rolex watches contact Avi Dayan at A&E Watches. The company website is www.aandewatches.com or call(415) 437-3263.
ABOUT AVI DAYAN
Avi Dayan is a graduate of the Israeli Gemological Institute. He is a member of the International Watch and Jewelry Guild and the American Estate Jewelry Association.
His company, A&E Watches (www.aandewatches.com) is located in the San Francisco Jewelry Mart, one of the Pacific coast’s most prominent diamond and jewelry buying centers. Dayan is a consultant and advisor to Butterfield and Butterfield, the blue-chip international auction house.
Focus: San Francisco used Rolex watches, used Rolex watches, Rolex watches used San Francisco, preowned Rolex watches
February 19th, 2008
What Is Hip Hop Jewelry and Why Is It So Popular?
TransWorldNews (press release), GA
Bling Bling becoming more mainstream
Columbia, MD, USA 2/17/2008 10:35 AM GMT (FINDITT)
Hip hop jewelry has taken the world by storm. Fans across the US, Canada, the UK and even Asia are purchasing this fascinating type of jewelry through various internet retailers. But why is it that these styles are so popular? What makes hip hop jewelry unique? To answer those questions, we’ll have to look at the evolution of these products over the years.
iced out jewelry. This is the biggest endorsement for hip hop jewelry. The products are also very unique and distinguishable due to their size and styles. Hip hop chains are usually very large, so large that most mainstream jewelers do not carry those styles. Another common trend is that they are covered with gemstones of all types ranging from diamonds to rubies and sapphires. Because of these characteristics, one can imagine how expensive these products are. Most of the time, you’ll see prices upwards of $50,000 for one item. The problem is, most people cannot spend a year’s salary on one jewelry item.
To fill the demand for these products at reasonable costs, fashion jewelry manufacturers began creating high quality replicas at amazing prices and great quality. The highest quality iced out chains are made of solid brass and only the highest quality CZ stones are used. Watches are made with quality Japanese movements, genuine crocodile pattern leather straps and top grade steel. With the emergence of these products, the popularity of hip hop jewelry surged. Keep in mind, however, there are many levels of quality when it comes to bling jewelry. The bottom of the barrel jewelry is often times meant for gag gifts or part of a holloween costume. Only a select few carry truly jewelry grade items at prices never before imagined.
The highest quality hip hop jewelry is available through reputable online retailers such as hiphopbling.com. For over ten years now, the company has released some of the highest quality products on the market. Some of the stones used in their jewelry even rival the brilliance of many common quality genuine diamonds. They carry a full selection of all types of hip hop jewelry. Their store is a huge collection of over 1300 fully stocked items at everyday low prices.
February 18th, 2008
Jewelry Retailers Urge Protection for Alaska’s Bristol Bay
Kansas City infoZine, MO
shoppers rushed to buy last-minute Valentine’s gifts, five of the nation’s leading jewelry retailers-Tiffany & Co., Ben Bridge Jeweler, Helzberg Diamonds, Fortunoff, and Leber Jeweler, Inc. pledged their support to permanently protect Alaska’s Bristol Bay watershed from large-scale metal mining, including the massive proposed Pebble gold mine. The retailers, who had $2.2 billion in sales in 2006, took this step at the invitation of local Alaskans, who seek to protect wild salmon, clean water, and traditional Alaskan ways of life from the damaging effects of industrial metal mines.
“I am pleased to stand with others in the jewelry industry today in announcing our support for protecting Alaska’s Bristol Bay watershed from large-scale mining,” said Jon Bridge, Co-CEO/General Counsel of Seattle-based Ben Bridge Jeweler. “As retail jewelers, we want to be able to tell our customers that the precious metals we use are mined responsibly-that the materials used in the jewelry they purchase have been mined in environmentally friendly ways, respectful of the Bristol Bay salmon fishery and the communities that depend on it.”
The controversial Pebble mine is highlighted in a new report released today by the No Dirty Gold consumer campaign led by EARTHWORKS and Oxfam America. The report, “Golden Rules: Making the Case for Responsible Mining,” documents the toll of irresponsible mining on people, water, and wildlife at a time when soaring metals prices are driving new mining development globally. The report describes human rights violations and environmental concerns at metals mines in the United States and around the world.
The retailers are among a group of 28 jewelry retailers, representing 23 percent of US jewelry sales, who have endorsed the No Dirty Gold campaign’s “Golden Rules”-human rights and environmental criteria for mining. Today’s announcement takes those commitments a step further.
“Some of the world’s leading jewelers have recognized that the Bristol Bay watershed is a treasure worth protecting. We applaud their principled position and commitment to not source metals from areas of high conservation value,” said Payal Sampat of EARTHWORKS.
The proposed Pebble mine is backed by the UK-based Anglo American, one of the world’s largest metals mining companies, and Canadian firm Northern Dynasty Minerals. The Bristol Bay watershed, where the proposed mine would be located, supports the world’s most productive wild salmon fishery-which is critical to the state’s economy and to the livelihood of many Alaska Native communities.
“We want to express a sincere thank you to these jewelry companies,” said Bobby Andrew, a spokesperson for Nunamta Aulukestai (Caretakers of the Land), an association of eight Alaska Native corporations. “The proposed Pebble mine threatens the wild salmon fishery that has sustained the region’s economy and our people for generations.”
Last year, Nunamta Aulukestai and a diverse group of Alaska Native communities, commercial fishermen, businesses, and sportsmen publicly invited jewelry retailers to express support for the protection of Alaska’s Bristol Bay watershed from large-scale mining. The invitation ran as a full-page ad in National Jeweler magazine.
Consumers today are more aware of the human and environmental costs of the goods and services they purchase than ever before. While other business sectors have responded to demand for cleaner, ethically produced goods and services-such as sustainably harvested wood products and fair trade coffee-the mining sector lags behind in terms of embracing an independent system for standards and verification. Some 100,000 consumers in more than 100 countries have signed on to the No Dirty Gold pledge, urging mining companies to provide alternatives to “dirty” gold.
“Consumers and jewelry retailers across the country have clearly signaled their desire for certified, more ethically produced metals,” noted Raymond C. Offenheiser of Oxfam America. “The question is: when will mining companies step up to meet this obvious demand?”
The No Dirty Gold campaign urges mining companies to find solutions and implement best practices that can be independently verified-at both existing and new operations. According to the campaign’s new report, mining practices in places like Ghana, Indonesia, Nevada, and other parts of the world continue to pollute air and water, damage farmland and forests, and, in some parts of the world, fuel violent conflict. The report describes damaging practices at 17 metals mines around the world. These mines include:
Grasberg mine in West Papua, owned by U.S.-based Freeport McMoRan, which has been linked to human rights abuses and extensive water pollution.
Jerritt Canyon mine in Nevada, owned by Yukon-Nevada Gold Corporation, which is a leading source of airborne mercury pollution in the U.S.
Bogoso/Prestea Mine in Ghana, owned by Canadian firm Golden Star Resources, which has contaminated drinking water and local fisheries with cyanide spills in violation of the industry’s voluntary “Cyanide Code.”
There are promising signs within the industry that some operations are responding to community concerns and consumer demands for more responsibly mined gold. For example, a number of firms have adopted a policy against dumping mine wastes in rivers, while others have publicly committed to disclosing payments made to foreign governments.
Related Link
Download a copy of the report, visit www.nodirtygold.org
Copy of the ad and jeweler pledge, see www.protectbristolbay.org
February 18th, 2008
IDEX Online Research’s Challenges for 2008: Jewelry Shopping A Dull In-Store Experience
IDEX Online, Israel
(February 14, ‘08, 10:41 Ken Gassman)
Go to any mall in America and see where the crowds are. They are in the Apple Computer store. They are in the Bass Pro store. They are anywhere that retailing is fun, anywhere there is an “experience†involved.
American Baby Boomers – older, wealthy consumers – have latched onto the concept of “experiential retailing,†and now merchants serve it up every chance they get. Little wonder: it turns out that consumers of all ages enjoy the experience of shopping when it is interactive and fun
Retail futurists tell us that “experiential retailing†is the wave of the future. The concept of “putting the dog food out for the dogs†won’t entice shoppers any longer. The concept of “one-size-fits-all†won’t work, either.
Shopper change. Social norms change. Consumers’ needs change. Unfortunately, far too many merchants resist change.
Jewelry Store Shopping: Same-Old, Same-Old
Jewelry merchants haven’t updated the way they do business in generations. Each morning, they lay out their merchandise, just as their forefathers have done for hundreds of years. Because retailing has traditionally been product-centric, it made sense.
Today, this won’t work in a market where the shopping experience is interactive, and customer intimacy is important. In the days of mom-and-pop retailing, the local merchant knew all of his customers. Today’s chain retailing has all but eliminated the concept of personalized shopping. And, even though many of today’s jewelers are still mom-and-pop family operations, they have forgotten their roots: they don’t offer a personalized shopping experience. Amazon.com is probably the leader in understanding customer intimacy: each time a customer returns to its website, a personalized list of books and other products are recommended to the shopper.
J. Walter Thompson (JWT), the ad and marketing agency that serves the U.S. diamond and jewelry industry, conducted a Retail Landscape Study which shows that shoppers are unimpressed with the jewelry shopping experience; they say that merchants’ stores are dull and unexciting. Here are some highlights from the JWT Retail Landscape Study:
The jewelry shopping experience is rated only “average†by consumers. Unfortunately, that’s not good enough for jewelers, if they hope to take market share from competitors who sell designer handbags, plasma TVs, and home décor items.
The jewelry industry’s current success is due to consumers’ love of jewelry, not the shopping experience.
Consumers have high expectations. The competition provides more fun, expertise, and excitement than today’s jewelry stores.
Diamond jewelry is extremely romantic and emotional, while the shopping experience is anything but. The jewelry store shopping environment fails – it is not about passion and excitement.
Here are specific consumer comments about shopping in the typical jewelry store in America:
“Many jewelry stores are just like other jewelry stores.â€
“Many jewelry stores are like stores of my parents’ day.â€
“Jewelry merchandise seems too similar from store-to-store.â€
“Traditional jewelry stores are boring.â€
Preferred Stores Offer Fun & An Interactive Experience
JWT’s Retail Landscape research study asked potential jewelry consumers what kind of stores they preferred. Here’s what the research uncovered:
Upscale shoppers enjoy the décor of their favorite specialty stores.
Upscale shoppers seek pampering when they shop.
Upscale shoppers seek stores that feel exotic, inspiring, and elegant.
Shoppers in the study cited three retailers that especially fulfilled their needs and wants:
L’Occitane
Restoration Hardware
Apple Computer
J. Walter Thompson says that other luxury retailers seduce people into browsing and buying. In general, jewelry retailers fail to follow through with this concept. Consumers seeking “retail therapy†– recreational shopping – shop for fine clothing, accessories including jewelry, consumer electronics, home décor, and gourmet foods. Unfortunately, jewelry is not high enough on that list to capture its fair share of consumer expenditures related to recreational shopping.
In addition, shoppers want an interactive experience. Apple gives customers a hands-on shopping experience. Sporting goods merchants have climbing walls and casting pools.
Stores Must Tell A Story
Paco Underhill, the guru of the American shopping experience, says that merchants must tell a story over the course of the store. That’s what distinguishes one store from another. The merchandise alone can’t do that, according to Underhill.
Further, Underhill says, “The jewelry store has to create the fantasy that comes with how women adorn themselves, the way Armani or Versace sell to women. Go to these stores and see what the trying-on experience is like. It’s aimed at the wearer. It assumes she’s the decision maker. A woman tries on an Armani suit or a Versace evening gown and she feels like a movie star. She gets a taste of how the rest of the world is going to see her and respond if she buys that garment. That’s what a jeweler must now attempt to do.â€
A well-planned retail environment romances all five senses, according to JWT research.
See – Design, pattern, lighting, displays, layout, fixturing, signage
Hear – Music or soundscape that sets a tone, conveys the store’s “energyâ€
Smell – Aromatherapy can send subtle unconscious messages that trigger strong responses (scents should be very light) – from fresh-baked cookies to coffee to expensive perfume to essences that excite or calm like ginger or peppermint, lavender, rose or vanilla
Touch – Tactile “experience†not only of merchandise but all surfaces, furniture, fixtures, materials on which merchandise is presented
Taste – The offering of a taste, from cookies to mints, coffee to champagne
Solving The Retail Puzzle
J. Walter Thompson says too many jewelers are missing one or more pieces of the retail puzzle. The challenge and opportunity for jewelry merchants is to enhance all marketing factors:
Product
Price
People
Promotions
Place
JWT’s research project showed that a frightfully high 30% of all shoppers who visited a jewelry store would never go back to that store again because it did not meet expectations.
In particular, JWT research emphasizes the importance of employing the proper store personnel. Here are JWT’s key observations:
Staff attitude can “make or break†a consumer shopping experience. It can cause shoppers to reject a store forever.
Many consumers don’t believe that jewelry sales people are diamond experts or have the knowledge of jewelry styles. Further, shoppers don’t think that most men, in particular, have the ability to understand their personal style and make a match between the proper jewelry and the shopper’s style. Paco Underhill says most women dress for other women, not for men.
Consumers say jewelry sales people have a snooty attitude. Here are their comments:
“They look you over, when you enter the store. You have to dress a certain way to go into a jewelry store.â€
“I would never just look at jewelry the way I will when shopping for clothes or bags or other fashion merchandise.â€
“You can’t look at things by yourself; there’s always a sales person there. You can’t compare. Jewelry shopping is a frustrating experience.â€
Paco Underhill’s Observations
Paco Underhill, the retail guru, has made some specific observations about the jewelry industry, both in his lectures and in his books. Here are some of the more relevant comments he has made, regarding jewelry retailers.
Very high-end jewelers don’t want to be approachable or seem affordable. He cites both Cartier and Bvlgari. The more precious the goods, the less glass to show it off in the store display windows. He cites Cartier as having a mall store clad in black stone. This store makes a statement in the context of the mall: no other store comes close to creating such a definite distinction between out there and in here. The windows are small squares of light set in those black walls: it feels expensive. Bvlgari doesn’t want good visibility into its stores from the outside. Underhill seems to agree: “You shouldn’t be able to see the best diamonds from outside the store; otherwise, where’s the mystery and drama?â€
The store must take care not to undercut the ambience with shoddy materials or workmanship. Attention to detail is imperative. You can’t ask shoppers to examine a tiny diamond, but ignore that smudged glass or that gray plastic trash can in the corner.
Jewelry stores are not keeping up with social change, Underhill asserts. New studies show that there is a huge market for self-purchasing women who jewelers have not tapped. The jewelry store must create the fantasy that comes with how women adorn themselves. That is a challenge.
“The entire jewelry store traditionally plays to a certain fantasy – the one of the guy who’s rich and powerful enough to afford something for the woman who’s beautiful and desirable enough, with exquisite taste in adornment, to deserve what’s here. Once women start buying their own baubles, however, the store needs to accommodate a second fantasy. This one is about dress-up, a game most women have been playing in one form or another since childhood. It’s also about self-reward, and making the leap between who she is and who she wants to be.†Call of the Mall, page 115.
Jewelry is now closer than ever to fine fashion, especially when women buy it. But it is not sold like fashion.
The display cases in a jewelry store act as a barricade; they tell the customer to “keep your distance.â€
Underhill describes a jewelry store targeting only women shoppers: The windows are large; the first thing you see is color, a kind of pink, mauve, rose shade which looks girly. Jewelry is nestled among swirls and swaths and swoops of fabric. The female sales people are wearing pastel-colored fuzzy sweaters, and they don’t look like the stylish keepers of the crown jewels. Prices are moderate, perfect for the woman buying for herself.
Underhill believes customers should spend time trying on jewelry: allowing shoppers to play with and try on whatever they want will result is strong sales gains and increased word-of-mouth advertising. Mirrors must be plentiful and large, so customers can see themselves trying on the jewelry.
He recommends better integration of jewelry and clothing. A sales person should assemble an outfit, the shoes, the bag, and the jewelry. “What Sephora did for cosmetics is what someone should do for jewelry,†he says. Sephora, a cosmetics superstore, changed makeup sales from a stern uptight salesperson-behind-the-counter experience (much like jewelry) to a fun, experimental, try-it-on-and-play environment.
Jewelry stores are hard. The casements are hard, there’s hard glass, and the product is hard. But it is sold to the romantic, soft side of a customer. There needs to be some way to soften up the store environment.
Underhill favors visible pricing. That, too, sets the stage for the show that’s in the store.
***
This article is the first in a series that expand on the points IDEX Online’s director of online research, Ken Gassman has raised in his analysis “State of the Jewelry Industry.â€
Ken is available to speak to corporate management groups and others about the State of the Jewelry Industry. He has developed a PowerPoint presentation which can be customized to your group. For further information, please email Ken at research [at] idexonline [dot] com.
February 15th, 2008
Jewelry retailers fall on Blue Nile view
BusinessWeek
New York
Shares of jewelry retailers fell Wednesday after online jewelry retailer Blue Nile offered a weak yearly outlook.
Citing uncertainty in the luxury retail sector, the company said it expects first quarter and yearly earnings below expectations.
Analysts said the luxury sector, once thought to be impervious to the economy, appears to be weakening. Tiffany Inc. and Coach Inc. have both warned of sales slowdowns.
JMP Securities LLC analyst Kristine Koerber said guidance was disappointing.
“Trends picked up slightly in February, but with a greater level of uncertainty around the luxury category, we remain on the sidelines with a ‘Market Perform’ rating,” she wrote in a note on Wednesday.
ThinkEquity Partners analyst Ed Weller lowered expectations for the company and kept his “Buy” rating.
“Though sales firmed for Valentine’s Day, we believe management has little confidence in any trend other than increased market share in an industry that seems dramatically weaker,” he wrote.
Shares fell across most of the sector during morning trading.
Finlay Enterprises Inc. shares fell 2 cents to $1.19.
Harry Winston Diamond Corp. shares fell 10 cents to $25.15.
Tiffany & Co. shares fell 80 cents to $39.46.
Zale Corp. shares fell 45 cents, or 2.6 percent, to $17.28.
Blue Nile shares dropped $8.20, or 15.2 percent, to $45.65.
One exception was Signet Group PLC. Shares rose 25 cents, or 2 percent, to $12.66.
February 14th, 2008
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