January 2008
Leeds and Son co-founder Weiner dies
Leeds and Son co-founder Weiner dies
January 10, 2008
Rancho Mirage, Calif.—Leeds and Son co-founder Eleanore Papp Weiner, who started the company in Coachella Valley, Calif., more than 60 years ago, died on Tuesday in Rancho Mirage. She was 85 years old.
“We are extremely saddened by the loss of our mother,” daughter Riki Stein said in a statement released yesterday. “She was an extraordinary woman who was not only a role model within our family, but she touched many lives here in the Valley with her elegance, graciousness and unique ability to make everyone feel special.”
Weiner was born on Dec. 3, 1922, in Pittsburgh, Pa. After graduating from high school, she worked as a buyer and model for Gimbels department store.
In 1946, she met her husband, Edward Harold Weiner. After getting married, the couple moved to Bullhead City, Ariz., where Weiner managed their first jewelry and variety store.
In 1947, the Weiner’s moved to the Coachella Valley where they opened the area’s first Leeds Jewelers in downtown Indio. The name came from combining his name (Ed) and her name (El). At one point, the couple owned six stores throughout the region: in Barstow, Blythe, El Centro, Indio, Palm Springs and Yuma.
While her husband ran the business behind the scenes, Weiner excelled at customer service, taking a genuine interest in the many lives she touched.
Because of her unique flair and sincere love of community, Leeds and Son Fine Jewelers is a hallmark establishment and one of the oldest and most respected jewelers in the desert, according to the statement.
“Mother was our teacher. She taught us not only about the jewelry business but about life, living, graciousness, giving back and making everyone feel important,” Stein said. “She was as kind and lovely on the inside as she was on the outside.”
Stein and Weiner’s son Terry Weiner now operate Leeds and Son. Grandson Brett Stein is a senior account executive.
Weiner is survived by her three children: daughter Wendy Shaw and son-in-law Rick Shaw, Stein and Terry Weiner; four grandchildren: Ryan Rand, Brett Stein, Lindsay Stein and Alexandra Weiner; two great-grandchildren: Hunter Rand and Sidney Rand; and brother Elmer Papp and sister-in-law Dee Papp.
Her husband preceded her in death on Sept. 24, 2002.
A Celebration of Life is scheduled for Jan. 11 at La Spiga Ristorante, 72557 Highway 111, Palm Desert, Calif., at 2 p.m. All are welcome.
The family suggests memorials be made to the Los Angeles Lakers Youth Foundation, 555 N. Nash St., El Segundo, CA 90245.
Finlay Holiday Same-Store Sales Down 6%
Finlay Enterprises, Inc. said Thursday that same-store sales for Finlay Fine Jewelry Corp., its wholly owned subsidiary, dropped 5.9 percent for the November-December holiday period. Sales for the two-month period increased 26.9 percent to $349.1 million, year-over-year.
The sales results are on a continuing operations basis, which excludes sales from discontinued Macy’s, Belk’s, and Parisian stores. Specialty jewelry stores consisting of Carlyle, Congress, and Bailey Banks & Biddle, which were acquired in November 2007, contributed sales of $130.4 million for the two-month period, as compared to $43.7 million for the same period last year.
On a continuing operations basis, sales for the 11-month period ended Jan. 5, increased 13.7 percent to $801.9 million, year-over-year. Specialty jewelry stores contributed sales of $208.3 million for the 11-month period, as compared to $100.2 million in 2006. Same-store sales for the 11-month period decreased 1 percent on a continuing operations basis. Including discontinued stores, same-store sales for the 11-month period decreased 0.6%.
"We are disappointed with our results for the holiday period, which were negatively impacted by weak consumer confidence and a difficult retail environment," said Arthur E. Reiner, Finlay Enterprises, Inc. chairman and chief executive officer. "Despite these challenges, we continue to conservatively manage our expense structure and our inventory. Having completed our recent financing of our revolving credit facility, we are highly focused on integrating the recently acquired Bailey Banks & Biddle business, which we expect will be a significant contributor to our profitability in the future."
In related news, Standard & Poor’s Ratings Services said it has cut its corporate credit rating on Finlay Enterprises Inc. and its wholly owned unit Finlay Fine Jewelry Corp to ‘B-’ from ‘B’, Thompson Financial reports.
S&P said the downgrade reflects the New York-based company’s weak operating performance and concerns regarding the renewal of department store leases and its limited history in operating free-standing retail stores.
The ratings agency said it has also lowered the company’s senior unsecured rating to ‘CCC+’ from ‘B-’ and removed all ratings from negative watch, where they were placed on Sept 27 last year after Finlay executed an asset purchase agreement with Zale Corp. for Bailey Banks & Biddle.
The rating outlook is negative.
Finlay Enterprises, Inc. is a retailer of fine jewelry operating luxury stand-alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States.
JA’s Talking Points
Here is how Jewelers of America recommends handling consumer queries about the De Beers class-action settlement:
Customer: I saw in some magazine that I might be eligible to get cash back on my diamond jewelry purchases because of a class-action suit against De Beers. What’s that all about?
Jeweler: There has been a proposed settlement on a class-action suit against De Beers—and consumers can file a claim to share in the settlement. We understand that a special Web site has been set up at www.diamondsclassaction.com, where you can file your claim online.
Customer: I have no idea how much I’ve bought from you over the years—the notice said I could file a claim for anything I’ve purchased between 1994 and some time in 2006.
Jeweler: Yes, we understand that the claims period for consumers goes from Jan. 1, 1994, and March 31, 2006. We can do some research and get back to you concerning the information we have for your purchases on file. I can’t promise we have records that go back that far, but we’ll do our best to give you a summary of all your purchases we have on record.
Customer: Do I need to have receipts for all of my purchases?
Jeweler: We understand that you don’t need to submit proof of your purchases with your claim form, because it’s an online submission. But the claims administrator has stated that it might request proof of your purchases at some point, so it would be a good idea to check your own files, too, for receipts, credit card statements, diamond grading reports or appraisals, insurance statements, or any other records of your purchases.
Customer: How much will I get, do you think?
Jeweler: According to the claims administrators, that will depend on (1) the amount of your claim and (2) the amount of your claim compared against the total amount of all claims filed. The settlement fund will be divided pro rata (proportionately) among all qualified claims filers. We understand also that claims below a certain amount are not entitled to be paid. At the www.diamondsclassaction.com Web site, you’ll see that the process is explained in more detail and there’s a toll-free information number if you have more questions.
Unintended Consequences
The recent decision of Jewelers of America, Tiffany, Cartier, and others in the jewelry community to urge a ban on importation of rubies from Myanmar (Burma) brings back an interesting point-counterpoint discussion that took place last year at the Gemological Institute of America Symposium when this subject was raised.
In the panel discussion on ethics, one audience member rose to speak against the policy of the U.S. government that permits the importation of rubies mined in Myanmar and cut elsewhere. She stated that the position of the government was ethically and morally wrong and that the industry should lobby against this policy. The speaker enumerated the terrible working conditions and the oppressive actions of the military government against the people of the country and the miners in particular. When the speaker finished she received a significant round of applause.
On the other side of the room, another woman raised a number of facts in opposition to the first speaker’s point of view. She asked rhetorically if anyone in the room had been to Myanmar. No one acknowledged that they had. She continued that she had visited the country and witnessed the living conditions of the miners there. Her description of the life of the miners was not pretty. In fact, it sounded very much like the lives of alluvial miners in certain parts of Africa. At the end of her remarks, the speaker made a comment and posed a question.
The comment was: "We in the developed world cannot and should not judge standards of living by our own." Her question was: "What would the miners do to provide for their families with the source of their income being shut off?" She, too, received a significant round of applause.
It is correct and proper for the industry to voice concern about and opposition to human rights abuses in countries where the governments are behaving as they are in Myanmar. The unintended consequence of taking a stand against purchasing product mined in Myanmar and cut elsewhere is to place at risk the very people the effort is intended to help.
Principled stands on human rights issues are indeed appropriate. However, in my view they also should reflect the physician’s directive: "First, do no harm." If the ban is effective, the people most affected will be the miners and their families. So the question is, What can be done short of a ban?
It seems to me that the same logic the industry used in its efforts to blunt the effect of conflict diamonds and the film Blood Diamond is appropriate in this case as well. Do something positive to help those affected. A public relations gesture to take a stand against the behavior of the government of Myanmar is one thing. Fixing the problem is another. If you are unable to fix the problem, don’t make it worse.
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Author Information |
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Frank Dallahan, frankdallahan@comcast.net |
Antwerp Diamond Companies Flock to Macau
The Macau Jewellery & Watch Fair opened Thursday for the first time ever with a strong show of support from the Belgian diamond industry. No fewer than 33 Antwerp-based diamond companies are exhibiting in the event that has been billed the first trade show to take place in the new year on the Asian continent.
The Macau show runs from Jan. 10-13 at the Cotai Strip Convention and Exhibition Centre at The Venetian Macao. The Antwerp World Diamond Centre Pavilion is located in Hall D, and it houses 33 companies in booths spread over 513 square meters.
“One may be surprised at the very strong Antwerp presence in a show that, after all, is only being held for the first time,” said Philip Claes, the AWDC spokesperson, “but the enthusiasm that was shown by so many people in traveling to Macau is indicative of the high regard that exists in Antwerp for the Asian and, more specifically, the Chinese market. We will have a strong presence at a variety of trade shows this year—in Macau, Hong Kong and on the Chinese mainland—and this derives primarily from our understanding that China is a growth market of primary importance.”
Over the first 11 months of 2007, exports of polished diamond from Belgium to mainland China totaled $222.9 million, 67.5 percent more than the amount recorded during the corresponding period a year earlier. Polished diamond exports to Hong Kong, which are recorded separately, stood at $1.53 billion at the end of the 11-month period, 9 percent more than during the same period in 2006. This makes the entire Chinese region Antwerp’s second largest polished diamond export market after the United States.
The Antwerp World Diamond Centre is the official representative of the Belgian diamond sector, and in this capacity is charged with managing the relationship between the diamond sector and government, and promoting the interests of the Belgian diamond industry worldwide.
Chain Store Sales in 2007 End on a Soft Note
December sales grew by 0.9 percent on a year-over-year comparison for the same month of 2006 on a same-store basis for U.S. chain stores, according to the International Council of Shopping Centers, Inc.
The overall sales gain is largely in-line with ICSC Research’s expectation of about 1 percent for the month.
"Overall the consumer was conservative in their spending for the 2007 holiday season, as the season posted a gain of 2.2 percent—it’s weakest showing since 2002," said Michael P. Niemira, ICSC’s chief economist and director of research. "Looking forward to January, we expect a gain of 1.5-2 percent, as the tough economic environment lingers."
ICSC Chain Store Sales Trends is a monthly report on the U.S. retail industry’s sales performance based on an ICSC preliminary compilation of publicly-available sales for 45 chain stores during the month of December.
Strengthen Your Brand to Increase Traffic and Sales
What would it mean to your business if your customers always thought about your store first whenever they considered buying jewelry? Growth in competition—together with declines in customer loyalty—make always unlikely. However, you can significantly increase the likelihood that customers will think about your store by building a strong brand.
Brand building is not just for big companies like Coca- Cola, Proctor & Gamble, or Cartier. A brand image or brand promise simply refers to creating a strong reputation in the minds of customers that makes them think about shopping at your establishment more often. You can do this regardless of size or product type. Here are some questions about managing your brand.
Appraising the Situation
- Can you state clearly and succinctly the reputation you want to create in the minds of customers?
- Does this reputation distinguish you from your competition?
- The last time you made a major merchandise or capital expenditure or personnel decision did you think about how it would affect your brand image?
- Have you identified specific behaviors you want from your sales associates to help ingrain your brand promise in the minds of customers?
- Do you regularly measure and evaluate how well you’re strengthening your brand image?
- Are you finding ways to communicate and reinforce your brand image every day?
Gem Bytes
Effective brand management requires creativity, discipline, and persistence. Here are some key steps to help you build and manage your brand:
- Know thy competition. The strongest brands bring to mind something customers value but cannot easily find elsewhere. Start with a point of differentiation—what you can offer customers that will distinguish you from your competition—and you will build your brand on bedrock rather than sand.
- Write it down. Avoid imprecision by writing out what your brand promise is and getting feedback from others on how precise they believe it is (and whether it distinguishes you from the competition).
- Make sure your employees know. There is an old story about a retailer who asks an employee to wipe down the display case. The employee does so, but with a dirty cloth. Thus, although the employee executes the order, the goal of a clean display is not achieved. Make sure your employees understand the goals you’re seeking—the full brand promise—not just the activities you hope will get you there.
- Focus on behaviors. Sales associates send both overt and covert messages every time they interact with a customer. You and your sales associates should have in mind a clear list of specific behaviors designed to help communicate your brand image. If part of your promise is a relaxed atmosphere in which to shop, what specific greeting behaviors will create such an atmosphere? If you hear clients say "no, thank you," your associates’ greetings are probably ineffective.
- Filter major decisions through the lens of your brand. One successful Fortune 100 retail company has a vice president of brand whose job is to review major decisions based on whether they will strengthen or hurt the brand image the company wants to communicate. Assuming you don’t have such a position, take that role upon yourself.
- Measure and check progress. Measurements should include how well your employees understand the brand promise, how often sales associate behaviors are occurring, and what your customers think. Brands are perceptions, so only your customers can say if you’re successfully achieving the image you aspire to.
As your mother most likely explained, there is nothing as important as your reputation. Be clear in defining what you want that reputation to be and then communicate and reinforce your brand message every day.
| Author Information |
| Martin Shanker is president of Shanker Inc., a Manhattan-based international management consulting firm, which works with such companies as Cartier, Van Cleef & Arpels, Burberry, and the Estée Lauder companies to create behavior change in sales and management teams. Contact him at martin.shanker@shankerinc.com, (212) 545-7200, or visit www.shankerinc.com. |
Wal-Mart same-store sales up 5.6 percent
Wal-Mart same-store sales up 5.6 percent
January 10, 2008
Bentonville, Ark.—Same-store sales at Wal-Mart Stores Inc. increased 2.6 percent, excluding fuel sales, for the five-week period ended Jan. 4, the company announced today.
Total company net sales, including Wal-Mart Stores, Sam’s Club and international sales, increased 8.4 percent for the period, and were up 8.6 percent for the 48-week period ended Jan. 4.
The company said same-store sales during the five-week December period were driven by strength in the grocery, pharmacy and electronics categories. Products related to entertaining and holiday baking performed well, as did seasonal merchandise driven by colder weather.
“In a difficult retail environment, we were pleased with our comparable-store sales during this period,” Wal-Mart Stores U.S. President and Chief Executive Officer Eduardo Castro-Wright said in a media release. “Wal-Mart’s food performance was very strong, which helped drive traffic to other areas of the stores.”
Castro-Wright also said customers responded well throughout the holiday season to the stores’ pricing and merchandise offerings, which were supported by well-integrated advertising and in-store communications.
“Customers were also pleased with the improvements they saw through our faster, friendlier check-outs, as well as their overall in-store experiences,” Castro-Wright added. “Our stores were well-merchandised and did a good job managing inventory throughout the Christmas season.”
Looking ahead, the company expects same-store sales for the four-week January period (Jan. 5-Feb. 1) to run at about 2 percent.
“We expect to be within our previously stated guidance of $0.99 to $1.03 for earnings per share from continuing operations for the fourth-quarter of fiscal year 2008,” Wal-Mart Stores Executive Vice President and Chief Financial Officer Tom Schoewe said in a media release. “However, fourth-quarter earnings will be pressured by higher interest expense versus last year.”
Wal-Mart Stores operates Wal-Mart discount stores, supercenters, Neighborhood Markets and Sam’s Club locations in the United States. The company also operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom.
For additional information about Wal-Mart, visit its Web site, Walmartstores.com.
Sightholders implicated in smuggling case stung with supply suspension
Sightholders implicated in smuggling case stung with supply suspension
January 10, 2008
London—”A number of current sightholders” will temporarily lose their diamond supplies because of alleged involvement in the Brenig diamond-smuggling case, the Diamond Trading Co. (DTC) confirmed to National Jeweler.
DTC spokeswoman Louise Prior stated via e-mail that the suspension is effective immediately and that, pending results of further investigation into the matter, “the DTC reserves the right to take all appropriate action in respect of its supply.”
“Appropriate action” can include termination of supply and applies to both companies covered under the current supply contract and those just named as sightholders for 2008-2011.
The DTC is not disclosing the number, or names of, any companies involved.
The suspension is the direct result of the Dec. 6 Antwerp criminal court decision to convict and sentence Jerry Brenig to prison for smuggling diamonds based on fake invoices issued by diamond manufacturers. The Brenig case happened more than 10 years ago and is alleged to have involved a number of Antwerp-based companies, including non-sightholders.
In other diamond news, the DTC confirmed to National Jeweler that it has sold its Arisia Solitaire luxury brand for an undisclosed amount to Mumbai-based Shrenuj and Co.
Earlier this week, the DTC sold its Nakshatra brand to Gitanjali Gems, also based in Mumbai, for $25 million.
Editor’s note: For related news, see Gitanjali Gems announces next acquisition.
Ireland Show, April 19-22 in Secaucus
Two hundred manufacturers from Ireland, Wales, Scotland and England will participate in The Ireland Show, April 19-22 at the Embassy Suites Hotel, in Secaucus N.J.
Merchandise being featured include: jewelry, general giftware, apparel, gourmet, fine art, tableware, leather goods, stationery, music, crystal, religious goods, collectibles, and rugs.
Exhibitors will include Abbey Press, Avoca Handweavers, Bewley Irish Imports, Blarney Stone enterprises, Branigan Weavers, Cathedral Art Metal, Celtic Fashions, Dara Records, Fado Jewelry, Fragrances of Ireland, Galway Irish Crystal, Mullingar Pewter, Philip Gray Fine Art, Solvar Jewelry, Tipperary Crystal, and Wales Tartan Centre.
Open to the trade only, the show’s hours will be 2- 6 p.m. on April 19, 9:30 a.m. to 6 p.m. on April 20 and 21, and 9:30 a.m. to 4 p.m. on April 22. Retailer-oriented seminars will be held at 8:30 a.m. April 21 and 22.
With every order placed, retailers are given a ticket to win tens of thousands of dollars in cash and prizes. Prizes include trips to Ireland and a store of merchandise worth more than $25,000.