Each generation has had its own positive influence over Kelley Jewelers, a family-owned business throughout its history. Kristen Kelley, the retailer’s current owner and chief executive officer (CEO), represents the third generation. She credits her grandfather, F.L. Kelley, with setting the store on an “amazing financial base”; her father, David, with turning Kelley Jewelers into a “diamond store” and herself with developing systems, training and empowering employees and creating a unified advertising plan. The result is a one-unit independent jeweler dedicated to serving its community, with the reputation and buying power to bring top-notch product to its customer base.
Diamonds are a primary focus of the business. Kelley says her store’s affiliation with the Continental Buying Group allows it “great access to suppliers,” especially diamond dealers. She estimates that diamonds and diamond jewelry contribute about 60 percent to total sales.
The retailer maintains a “huge inventory” of loose diamonds and buys castings right out of the mold from a number of suppliers. “Our claim to fame is custom jewelry,” Kelley says. This includes a wide assortment of diamond engagement rings, as well as classics such as Journey pendants, circle pins, three-stone rings, tennis bracelets and ring mountings. A large portion of the pieces are made in-house by the store’s three bench jewelers.
Owning Diamonds
Kelley credits her graduate gemologist (GG) diamond buyer with selecting the right goods and, on occasion,paying more to improve the cut. “Sometimes we pay extra to have the diamonds recut to our specifications, yet we are still able to maintain competitive prices,” she says. On any given day, the store has an inventory of about one hundred one carat-plus center stones that Kelley emphasizes are “owned, not memo.”
The average diamond qualities for rings are F to G in color and VS clarity, Kelley says. For fashion pieces, qualities can range from H to I and SI2. On some bigger diamond engagement rings, colors can range from J to K, depending on customers’ choice, but lower-quality goods will not receive the Kelly quality hangtag reserved for its special diamonds. Some of the loose diamonds come with certificates, Kelley says, but the retailer doesn’t really push certs. As she puts it, “The Kelley name carries more weight than a cert.”
Generations
The four-to-five-generation customer base for this store is a classic example of not judging a book by its cover. Although the town has a population of only 10,000, it ranks in the top percentiles in per capita income. Most shoppers are local residents, who come into the store in work boots and farming clothes. However, they like to spend money on jewelry and they want top-quality merchandise, the retailer says.
Area residents are involved in the oil industry and Weatherford’s fortunes have been buoyed by that, even during economic downturns. Kelley is one of the few people who can say, “I love it when the price of gas goes up.” The recent recession didn’t hit the region until 2009, when sales figures became fairly dismal. There was little improvement during 2010 all the way through the month of November, but in December, Kelley’s did more than $1 million in sales.
The owner credits her strong sales to smart buying, a knowledgeable sales staff and close customer relationships. The store has a staff of 20, all female except for the three bench jewelers. Employees are required to take product-knowledge courses from the Diamond Council of America and Gemological Institute of America (GIA) and Kelley’s employs two certified gemologists.
Industry and community support have been part of Kelley’s heritage. Her grandfather, father and she all have served as presidents of the Oklahoma Jewelers Association (OJA); her father was on the board of Jewelers of America (JA). Recently, Kelley announced a new partnership with Kim Ingram, who has worked in the store for 17 years and is currently vice president and chief financial officer (CFO). The partnership agreement provides that Ingram eventually will purchase Kelley’s and continue the store’s traditions. In addition to membership on several local boards, Ingram also has served as president of OJA.
Spring Cleaning
Among the innovations and services offered by this hometown jeweler are extended warranties on merchandise; full-scale design, repair and remount services; a “wish list” system; personalized delivery service promotions and events such as trunk shows, loose diamond and gemstone events and one particularly effective promotion that helps clear out unsold inventory.
In the spring, Kelley’s stages its Spring Cleanup, a private sale reserved for top customers. Sales associates phone clients to invite them to the by-appointment event, where they are shown a selection of older inventory at reduced prices. Buyers love the opportunity to purchase jewelry
at bargain prices, and for the retailer, it’s an effective way
of cleaning out inventory, says Kelley.
Advertising is focused and effective, says the owner, funded by a budget of 4 percent of annual sales. In addition to four to six direct mailings per year, there are inserts in the local papers, radio ads — in which Kelley’s is the recognizable voice — and, more recently, billboards. Use of social media, such as Facebook, is another effective way of reaching out and selling to an extended range of customers.
Most recently, Kelley Jewelers has taken a lead in using the latest advances in technology to provide total transparency about its product. The method, says Kelley, is known as the “QR Code.” According to Kelley, owners of the new IPhone can pass the store windows, click on any jewelry tag and see on their screen all the details about the piece, including its total carat weight, stone quality and price. The goal of all this is to reinforce the retailer’s reputation for honest, yet competitive,pricing. Says Kelley, “We are a high-quality, approachable store with a wonderful selection of high-quality diamonds.”
*Pictured: Custom-designed Kelley's diamond engagement ring.
Article from the Rapaport Magazine - April 2011. To subscribe click here.