Retail Scope

RAPAPORT... The last stop for diamonds is the retail store. Here is a behind-the-scenes look at what is happening at retail in the U.S.

ANTHONY NAK SHOWS COLLECTION IN FIVE SAKS STORES

Jewelry firm Anthony Nak is debuting its collections in five Saks Fifth Avenue stores around the country. The Signature Collection, Tree of Life Collection and the new Cantilever Collection opened in Atlanta and Greenwich last month and will be unveiled in Palm Beach, Naples, and Boca Raton on October 15, 2006.

Anthony Nak partners and co-founders Anthony Camargo and Nak Armstrong’s jewelry is noted for its distinctive mix of fine gemstones and striking 18-karat draping gold. Their designs aim to incorporate elements of sophistication, beauty, invention and a constantly evolving combination of shape, color and texture. Their pieces have been featured in Vogue, Harper’s Bazaar, Town and Country, W, Glamour, InStyle, Elle, Marie Claire and People.

The new Cantilever Collection, the latest creation from the duo, was inspired by turn-of-the-19th-century miniature handbags that women wore around their necks. Designed to put romance back into the collection, Cantilever fuses the signature Anthony Nak’s casted metal with a more feminine feel from the vintage handbag inspiration.

“The Saks woman embodies our ideal client,” says Camargo. “She is sophisticated, feminine, and not afraid to distinguish herself with her personal style. That is what we try to accomplish with our collections.” Celebrities such as Reese Witherspoon, Angelina Jolie, Jennifer Lopez and Catherine Zeta-Jones are Anthony Nak clients. The Anthony Nak flagship store opened in November 2003 in Austin, Texas.

JA TO DEVELOP J-BIZ EDUCATION INITIATIVE

Jewelers of America (JA) is launching a new initiative in member and industry education dubbed “J-Biz.” JA’s President and Chief Executive Officer Matthew Runci announced last month that the national trade association’s executive committee had approved a plan to fund the development of this enhanced education program in the coming years. “The future success of retail jewelers is tied to education, for both store owners and their staff,” Runci said. “J-Biz will meet that need by providing … quality education programs that are more accessible to more JA members than ever before.”

According to Runci, JA will partner with other associations and industry educators in order to provide quality content, avoid duplication, “adapt the best existing programs to this effort and to develop new programs when needed.” Originally given the title “Smart Business,” the J-Biz project grew out of discussions at the 2005 JA Affiliate Leadership Conference in Washington on how to expand participation in educational programs.

At the center of J-Biz is the development of multiple delivery methods for the education programs: in-person, online, at home or in-store. “We recognize that different people learn in different ways, and that many JA members have only limited access to in-person programs,” explained David Peters, JA director of education. “So, we are working on ways to present the same education program in different formats.” Further information will be made available to members via the JA website at www.jewelers.org and in upcoming issues of the J Report, JA’s newsletter.

A final report from the J-Biz taskforce was approved by the JA board of directors at a recent meeting and also discussed at this year’s JA Affiliate Leadership Conference during the JANY Summer Show in New York City. The J-Biz taskforce consisted of: Robert La Perla, of La Perla Limited, West Hartford, Connecticut (Connecticut Jewelers Association); Robert Marks, of Rogers Jewelry, Modesto, California (California Jewelers Association); Artie Bennos, of Simms II Jewelers, Winchester, Massachusetts (JA board of directors); JA Treasurer Michael White, of White’s Jewelers, Springfield, Tennessee; Bill Blair, executive director of Missouri Jewelers and Watchmakers Association; Sandy Brown, executive director of New England Jewelers Association; David Peters; and JA Vice President David Lafleur.

WAL-MART PLANS TO CUSTOMIZE U.S. STORES

Wal-Mart Stores Inc. is looking to build a new image for itself in an effort to boost revenue growth and its market capitalization. The retail giant’s earnings for the second quarter ended July 31, 2006, fell 26 percent against the same quarter of 2005 to $2.1 billion, despite sales climbing 11 percent to $85.4 billion. This marked the first profit decline for Wal-Mart in a decade, while the group’s same-store sales in the United States rose 1.7 percent, the slowest growth rate in six quarters. Since February 2005, Wal-Mart’s stock has traded in the range of $42 to $51 per share, down from the low-$60s in early 2002.

Recently, the company announced that it will spend the next two years customizing its stores and its mix of products with a view to better catering to community stores for Hispanics, African-Americans, empty-nesters, baby boomers, suburban and rural shoppers, and the luxury market shopper. Wal-Mart calls its new approach “segmentation,” which is designed to draw upon local needs of each store as opposed to regional, national or global needs as a whole. In particular, Wal-Mart hopes to attract more affluent shoppers who may skip the retail chain for more expensive brand stores.

Eduardo Castro-Wright, president and chief executive officer of Wal-Mart’s U.S. division, told investors during a recent presentation that stores would be modified to serve a mix of products based on marketing research results. These would be derived from target groups fleshed out from specific locations, and would require Wal-Mart to evaluate about 3,000 — of roughly 200,000 — products offered by the retailer at any given store. “At the end of the timeline, anywhere from 18 to 24 months, we will have all of this implemented across the chain,” he said.

Wal-Mart is currently testing such changes across three-dozen stores. One initiative involving Hispanic identity in Houston, Texas, is reported to have increased sales by about 8 percent, and in the Evergreen Park section of Chicago, Illinois, higher gross margins have been achieved from a product lineup intended to cater to African-Americans.

Bentonville, Arkansas-based Wal-Mart employs roughly 1.3 million people in the U.S. and a total of almost 2 million worldwide and claims to pull approximately 100 million shoppers in the U.S. per week.

KAY ENHANCES ONLINE FEATURES

Kay Jewelers has expanded its kay.com site to include both online purchasing and the choice of home delivery or free in-store pick-up. The online option complements Kay’s more than 800 stores nationwide, enabling jewelry customers to make a purchase either in person or over the internet. Besides secure shipping direct to a home or business, customers can also choose to have their jewelry purchase shipped free to a nearby Kay Jewelers location.

“When we decided to offer our products online, our most important concern was to bring to kay.com the same friendly, knowledgeable shopping experience we’ve created in our stores,” said Mark Light, Kay’s president and chief executive officer. “Online customers receive the same quality merchandise at the same great prices. Plus, we have an education center and a customer service area to answer any questions they may have. And by offering the option to pick up their jewelry at a Kay store, we are giving customers an opportunity to speak with an experienced sales associate to ensure complete satisfaction.”

Among the new features at kay.com are 360-degree views of selected jewelry from The Leo Diamond® collection, giving customers the opportunity to view online the details of the diamond, which has been independently measured and certified for its brilliance. Customers can also click on the “Education Center” section of kay.com to find a guide to diamond purchases, a bridal guide, as well as information on different gemstones, pearls, precious metals and watches.

Simple online navigation tools allow shoppers to search by type of jewelry, by specific metals or gems, by price range, and by occasion, such as engagement, wedding or anniversary. Kay’s pricing, guarantees and return policies are the same for online customers as for in-store purchases.

Kay’s parent company is Ohio-based Sterling Jewelers Inc., the U.S. division of London-based Signet Group plc.

VAN CLEEF & ARPELS TO OPEN THIRD CHINA BOUTIQUE

Century-old Van Cleef & Arpels plans to open a retail store this month in the Shanghai Henglong Plaza. The group has about 50 stores worldwide and the Shanghai store will be the third outlet in China for the luxury brand, after the November 2005 launch of the Beijing boutique. Demand for luxury goods in China “goes beyond expectations,” a company representative was reported to have told press in China. Van Cleef & Arpels also has a store in Hong Kong.

Article from the Rapaport Magazine - October 2006. To subscribe click here.