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.

Americans to Spend Less on Graduates
A survey by the National Retail Federation (NRF) revealed that Americans intend to spend an average of $88 on gifts for an average of two graduates this year, down from $100 last year. Total spending on graduation gifts is expected to reach $3.9 billion, according to the NRF’s 2009 Graduation Consumer Intentions and Actions survey, conducted by BIGresearch.
The survey also found that 60 percent of graduates’ family and friends will give cash gifts, up from 57 percent in 2008. The poll of 8,447 consumers was conducted from May 5 to 12, 2009.

Graff Rated Top Luxury Brand
The Luxury Institute named Graff the top-rated luxury jewelry brand in its 2009 Luxury Brand Status Index (LBSI), a survey of high net-worth consumers. Harry Winston came in second and Buccellati ranked third; both jewelers also appeared in the top three in the previous two years.

This year, Graff earned 7.88, Harry Winston garnered 7.51 and Buccellati received 7.49 of a possible high score of ten. The LBSI asked 1,013 consumers with a minimum household income of $489,000 and average investable assets of $6.9 million to rate luxury brands by category across four equally weighted components: products consumed by people who are admired and respected, uniqueness and exclusivity, consistently superior quality and making the customer feel special across the entire experience.

de Grisogono Sells 40 Percent Stake
Swiss watch and jewelry maker de Grisogono sold a 40 percent stake to a pool of independent investors comprised of company founder Fawaz Gruosi’s friends and relatives, according to a company statement. Gruosi intends to use the cash influx to stabilize the company, which has recently experienced rapid growth, and ship the orders already on its books in a timely manner, the statement explained. The firm will also appoint a general manager, financial manager and production manager at its Geneva headquarters.

Online Retail Satisfaction Declines
Customer satisfaction with major retail websites has dropped, according to a study by consumer survey group ForeSee Results. Overall satisfaction was down 3 percent, the group found.

For websites that sell jewelry, the level of satisfaction from highest to lowest is ranked as follows: Amazon, up 1.2 percent; QVC, down 3.6 percent; JCPenney, no change; Walmart.com, an increase of 2.7 percent; HSN.com, a decline of 3.8 percent; Kohls.com, a jump of 5.6 percent; Nordstrom.com, a decrease of 1.3 percent; Costco.com, an increase of 2.8 percent; SaksFifthAvenue.com, flat with last year; Macys.com, a decline of 2.7 percent; Sears.com, down 1.4 percent; NeimanMarcus.com, a decrease of 6.7 percent; Overstock.com, a drop of 5.4 percent; ShopNBC.com, down 4.2 percent; BlueNile.com, a reduction of 2.8 percent; and Bidz.com, a decline of 1.4 percent.

JewelrySpotter.com Launches
Niche search engine JewelrySpotter.com launched, providing consumers an array of deals, offers and specials based on their search criteria. The site features products from every sector of the jewelry industry, including diamonds, colored stones, watches and accessories, such as jewelry boxes, repair kits and cleaner.

ThePlunge.com Targets Engaged Men
XY Internet, the owner of RingTutor.com, kicked off a new wedding website for men called ThePlunge.com, which offers men advice on getting engaged and choosing a diamond ring, as well as tips for planning the wedding, the honeymoon and the bachelor party. The website also has a blog, community forum and “ask the expert” column.

More Job Cuts at Birks & Mayors
Birks & Mayors has eliminated another 73 full-time staff positions as part of a strategic cost-saving exercise, the luxury jeweler reported in a filing. The downsizing will save the company approximately $2.5 million a year and follows similar job cuts announced in January.

Since the beginning of 2009, Birks & Mayors has eliminated 150 positions, or 15 percent of its workforce. Combined with salary reductions, the job cuts are expected to reduce the company’s operating expenses by $9.5 million annually.

Adylon Opens Brick-And-Mortar Store
Adylon Diamonds & Bridal Jewelry unveiled a showroom in Burbank, California, adding a physical store to its online business model. A company statement explained that Adylon intends to combine the service of a local jeweler with the innovation of an online diamond store. Adylon plans to expand into similar small showrooms in the greater Los Angeles area in coming years. The retailer specializes in diamond engagement rings and wedding bands.

M.J. Christensen to Reopen As LaReverie
Retailer M.J. Christensen plans to reopen its Henderson, Nevada Galleria Mall location under the new name “LaReverie” in midyear 2009, following an eight-week consolidation sale at its four Las Vegas-area locations. M.J. Christensen plans to continue operating under its namesake at its three other freestanding locations in Las Vegas and Henderson.

Goenka Offers Ceres Collection
Mumbai-based diamond manufacturer Goenka Diamonds & Jewels launched a high-end brand of handcrafted diamond jewelry under the name “Ceres” to be sold exclusively at a Ceres store in Mumbai, The Hindu Business Line reported. Three more Ceres retail outlets will be opened this financial year in Bangalore, Delhi and Calcutta, with plans also underway for international expansion. Ceres’ prices start at $20,000 (INR 1 million) and run into the hundreds of thousands, according to The Hindu Business Line. Goenka Diamonds, which supplies rough diamonds to the world market, is already engaged in domestic retail through its lower-end G-Wild brand. — Additional reporting by Acquire Media.

Ashi Diamonds Partners With Swiss Gemological Laboratory
Ashi Diamonds entered into a partnership with Swiss Gemological Laboratory to provide consumers with diamond jewelry certificates for all bridal sets from Ashi’s new Baby Bridals™ collection. The Swiss Gemological Laboratory website, www.swissgemlab.com, offers retail customers detailed product descriptions and quality grading information about the jewelry they have purchased, along with the retailer’s logo and address, a map, a picture of the store and contact information. Consumers may view, print or email their certificates on the website.

James Avery Pendant Benefits The Conservation Fund
Jewelry retailer James Avery launched its “Leaving a Legacy” campaign to benefit The Conservation Fund, which works to conserve America’s land and water legacy. James Avery will donate 50 percent of the sales of its Tree of Promise pendant to the fund, up to a $50,000 donation, through October 31, 2009. The Tree of Promise pendant depicts a tree inspired by the cedar of Lebanon.

Levinson Jewelers Honors Humanitarians
Levinson Jewelers, along with Bulgari and Gerald Genta, recognized eight local humanitarians with a $1,000 donation to each person’s favorite charity. The honorees included: Bonnie Barnett, owner of Bonnie Barnett Fine Art, Inc., Pauline Douglas, manager of Superior Dental; Joan Glickman, who is involved in several charities; Doreen S. Koenig, co-owner of City Furniture; Lorraine Thomas, co-owner of Wendy’s; Linda Von Allmen, who serves on the board of directors for the Boys and Girls Clubs of Broward County; Stacie Weisman, who is involved in several charities; and Lynne Wines, a chief executive with CNLBank. Levinson Jewelers made donations to Funding Arts Broward, Your Bosom Buddies II, Inc., Women in Distress, the Dorothy Mangurian Comprehensive Women’s Center at Holy Cross Health Plex, the Children’s Home Society, the Nan Knox Boys & Girls Club, Junior Achievement and 2-1-1 Broward.

Article from the Rapaport Magazine - June 2009. To subscribe click here.