Guaranteed quality prompts fine jewelry sales

Discount Store News, June 8, 1987

Guaranteed Quality Prompts Fine Jewelry Sale

Discounters are expanding their fine gold jewelry selections as customer confidence in the quality of merchandise at discounters increases.

Among major discounters, Jamesway recently started a diamond program and a fine jewelry catalog containing merchandise selling for up to $2,000; K mart started selling gold by the inch; American Wholesale Club, the two-unit, Texas-based membership club, sells such high priced, high quality merchandise as Mikimoto pearls and top-of-the line Rolex ladies' or men's 18 karat gold President watches at Christmas.

Secaucus, N.J.-based Jamesway unveiled the diamond program last Christmas and the new fine jewelry catalog last November.

"We do very nicely with fine gold jewelry and always enhance assortments. For example, we recently added a children's program called Baby Love,' said Joseph Ettore, senior vice president, soft lines.

The diamond program in the store consists of 16 sku's in a 4-foot glass case, ranging from 2-point earrings starting at $19.95 to pendants, fashion rings and birthstone rings selling for up to $80.

"The diamond program has proved very successful and has exceeded our projections,' Ettore said. One salesperson services the counter at all times and is just responsible for this area which includes fine jewelry, watches, leather products, razors and ear piercing.

Jamesway's 12- to 14-page jewelry catalog enables the customer to choose much higher-priced merchandise than what is shown in the store, he said. Diamond and gold rings for men and fashion rings for ladies are among the merchandise found in the catalog. Items in the catalog carry retail prices as high as $2,000.

The catalog is displayed on a jewelry counter with an overhead sign explaining what the chain calls its "luxury collection.' Customers can order by leaving a millimal deposit and the merchandise will be in the store within a week. The chain also is considering adding watches to the catalog.

Catalog Lends Opportunity

"The catalog affords our customer in small towns where there isn't the luxury of malls the opportunity to buy fine or better jewelry through us,' Ettore said.

The chain is currently looking at the catalog as plus business, he added. The best selling periods for fine jewelry at Jamesway are for Mother's Day, with the sale of the Mother's birthstone rings, graduation time, Father's Day and Christmas.

Ettore said that he feels jewelry sales will grow at all discounters. "The only factor that held the sale of fine jewelry back in the past is the fact that customers looked at the merchandise as being cheap or inferior,' Ettore said.

Legitimate Values

"Now, discounters are building a confidence with the customer by carrying legitimate values that are guaranteed,' he said. "The discount store does not carry junk; we carry the same quality as catalog showrooms and fine jewelry stores. As the customer becomes more comfortable with that fact, it is an automatic way to increase business.'

Jamesway's fine jewelry and diamond selection is guaranteed for workmanship and damages and is completely refundable with receipt if the customer is not happy. "We welcome appraisals and stand behind them,' Ettore added.

"What counts is trusting the retailer,' said Alan Fyke, vice president of merchandising at American Wholesale Club, based in Richardson, Tex. The warehouse's philosophy is to provide the best merchandise at the best values regardless of whether that merchandise is frozen foods or a fine piece of jewelry or diamonds, Fyke said.

American Wholesale Club has a small fine jewelry department displayed in five glass cases with selection depending on the time of year. Before Mother's Day and Christmas, the warehouse experiences strong sales in fine jewelry and increases selection of diamonds, pearls and fine 14 karat gold in fancy rings, pendants, and nugget jewelry. For instance, the warehouse only carries Mikimoto pearls or a top-of-the line Rolex men's or ladies' 18 karat President watch at Christmas.

The basic assortment carried year-round includes 10 to 12 sku's of gold chains, 15 to 20 sku's of gold earrings, 15 to 20 sku's of men's and ladies' diamond rings, and Seiko and Jules Jurgensen watches for both ladies and men.