RetailScope

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.

Shane Plans Wall of Loose Diamonds

Diamond retailer Shane Co., based in Centennial, Colorado, opened a retail location in Orlando, Florida, on August 1, featuring some “never before seen” retail concepts for a jewelry store. Prominent among these is a wall-size display of loose diamonds, from which customers can make selections for viewing and purchase.

“Our wall of diamonds dramatically demonstrates to customers, especially bridal jewelry customers, that Shane Co. offers by far the largest selection of loose diamonds in the entire Orlando area,” said Tom Shane, chairman of the board and CEO of Shane Co.

The diamond wall display is part of an inviting, customer-centric and in-store experience, Shane added. Servicing 24 retail stores in 14 states, Shane Co. imports diamonds, rubies, sapphires and pearls from overseas.

Tiffany to Open New Stores

In September of this year, Tiffany & Co. will open a new 1,700-square-foot store in Kuala Lumpur, Malaysia. The jeweler already operates a store in Suria Kuala Lumpur City Center; the new location will be at the Pavilion Kuala Lumpur.

Before the end of this year, the retailer plans to open new stores in Hong Kong and Macao. Opening its doors this month, the Venetian Macao-Resort Hotel will occupy roughly 2,500 square feet, and those are also the approximate dimensions of the store scheduled to open in Elements, a division of Hong Kong’s Union Square development, in October of this year. Designs similar to those on display at the jeweler’s flagship store in Manhattan will appear in the Macao and Hong Kong outlets.

In late 2008, luxury retailer Tiffany & Co. plans to open a store in Brussels, Belgium. At Boulevard de Waterloo 66, in the city’s premier area for luxury shopping, a roughly 2,100-square-foot store will greet shoppers. Brussels will be the first Belgian city to boast a Tiffany’s outlet.

“As center of the European Union and the capital of Belgium, we consider Brussels an exciting new market for Tiffany,” said Cesare Settepassi, vice president of Tiffany & Co. Europe.

JSA Warns of Switch Artist

One of the people in your jewelry store, a man about 34 years old, shows a prurient interest in the largest diamond earrings in the premises. Is he a strong candidate for a sale, or something else entirely?

Watch out—he fits the description of a thief identified by the Jewelers Security Alliance (JSA) as the likely culprit in six recent diamond switch cases. The suspect, a white male in his mid thirties who is about six feet tall and weighs about 185 pounds, reportedly enters the store, asks to see the large diamond earrings on offer, and then leaves. Then he makes a second visit, during which he makes a switch with pieces of cubic zirconium.

The thief, who tends to seek out high-end department stores, has pulled off heists in Santa Monica, California, Portland, Oregon, and possibly other locations. Anyone with information that could aid in his apprehension is urged to call the San Diego Police Department at (619) 744-9515 and ask for detective Timothy Johnson.

Ralph Lauren, Richemont to Launch Product Line

Fashion design company Polo Ralph Lauren and luxury goods retailer Richemont have teamed up to jointly launch a new line of luxury watches and fine jewelry.

Each of the companies owns a 50 percent share in The Polo Ralph Lauren Watch and Jewellery Company, S.A.R.L., which has formed to design and create the new line.

The partnership marks not only Richemont’s first joint venture with a luxury fashion designer, but also Polo Ralph Lauren’s first venture into the luxury watch and precious jewelry businesses.

The company will launch its first products in the fall of 2008.

Customized Jewelry Popular Gift for Wealthy

In a survey of the spending habits of wealthy U.S. consumers, jewelry emerged as the most popular customized luxury gift.

Conducted by the Luxury Institute, the 2007 Wealth Report showed that 37 percent of wealthy consumers buy made-to-order jewelry as a gift, while 44 percent make similar purchases for their personal use.

Jewelry was the second most popular made-to-order category — 56 percent of wealthy consumers said they buy customized jewelry — behind home furnishings (57 percent). Homes, men’s dress shirts and suits completed the top five.

The survey questioned residents with household incomes of more than $150,000 about their spending habits on customized luxury goods in the categories of made-to-order, one-of-a-kind and made-to-measure. Twice as many women buy made-to-order jewelry for personal use, it showed, while men buy it as a gift more often than for their own use.

The Luxury Institute said the wealthy listed more than 100 brands of made-to-order products they buy, of which Tiffany & Co. was the most popular, with 6 percent of the wealthy saying that they made a made-to-order purchase from the New York-based jeweler.

While automobiles were the most popular “one-of-a-kind” items, 26 percent said they have bought unique luxury items such as jewelry.

Jewelers Don’t Make Cut

Not a single jewelry company made the 2006 list of the top 100 retail outlets in the United States, causing the National Retail Federation (NRF) to drop the jewelry category from the annual survey. However, most of the top-listed companies do sell jewelry among other offerings.

The annual Top 100 Retailer ranking survey, published in the July issue of the NRF’s STORES magazine, showed that while jewelry retailers dropped off the list, newcomers included restaurants and truck stops as notable growth sectors.

The publication noted that the most successful retailers in the market recognize the need to reinvent themselves “to stay one step ahead of the competition.”

Topping the 2006 list, Wal-Mart posted sales growth of 11.7 percent to $348.65 billion, which was greater than the combined revenues of the next five retailers, the survey showed. STORES noted that in addition to the boost in revenues, Wal-Mart gained points for raising its public image by introducing a line of organic options and focusing on ways to conserve energy and materials.

Home Depot was number two with an 11.4 percent rise in sales to $90.8 billion, despite the slump in the United States’ housing market during the year and a change of chief executive officers. Supermarket chain Kroger ranked number three with revenues of $66.11 billion, followed by retail warehouse Costco in fourth place with sales of $60.15 billion. Mass merchant Target ranked number five with $59.49 billion in sales for the year.

Nine department stores made the top 100 list, headed by Federated, now known as Macy’s, at number 13 with sales of $26.9 billion. JCPenney ranked number 17 with revenues of $19.9 billion, followed by Kohl’s at number 23 with $15.5 billion in sales.

Among the remaining department stores, luxury store Nordstrom held number 39, Dillard’s number 41, Neiman Marcus number 74, The Bon-Ton Stores number 86, Belk at number 94 and Saks at number 100.

New Store Openings for Fast-Fix Franchise

Fast-Fix Jewelry and Watch Repairs, a franchise with more than 150 locations throughout the United States and Canada, has opened four new outlets in California, Texas and New York. Since it began franchising in 1987, the company has opened more than 150 outlets in the United States and Canada, following a strategy of situating its branches in high-traffic areas of shopping malls. The new stores, which fall into the same pattern, are in the Staten Island Mall in Staten Island, New York; the Sunrise Mall in Citrus Heights, California; the Westfield Fashion Square in Sherman Oaks, California; and the Ridgmar Mall in Fort Worth, Texas.

Founded in 1984, the company has developed a system for the quick and efficient repair of jewelry and watches. It has won repeatedly won recognition from Entrepreneur magazine as one of the Top 500 Franchise Companies.