May 2008

AGS diamond-grading system gets three patents

AGS diamond-grading system gets three patents
May 23, 2008

Las Vegas—The American Gem Society (AGS) has been granted three U.S. patents, the first in the organization’s 74-year narrative.

The patents, issued by the United States Patent and Trademark Office (USPTO), are all for the AGS’ Performance-Based Cut Grading System, which was developed by the AGS Laboratories cut-grade exploration team after years of work.

The USPTO granted the first patent, No. 7,336,347, on Feb. 26, for computer-ray tracing technology that helps determine a gemstone’s light performance. This includes the AGS Performance Grading Software and Angular Spectrum Evaluation Tool (ASET).

The second patent, No. 7,355,683, was granted on April 8, for systems and methods that can determine the dispersion of a diamond relative to an observance point and thereby provide a map or other indicator of the stone’s fire potential.

The USPTO granted the third patent, No. 7,372,552, on May 13, for the system and methods AGS developed to illuminate a diamond with multi-angle, color-coded light rays to make the resolution the location from which the gem gathers light.

AGS Executive Director and Chief Executive Officer Ruth Batson said they are thrilled to receive the patents, which are an acknowledgement of the AGS’ leadership in the arena of diamond cut-grade technology.

“[AGS Laboratories Executive Director] Peter Yantzer and his team of researchers have worked for several years to ensure the American Gem Society helps provide the trade with better-performing diamonds, and consumers with the confidence they’re purchasing the greatest number beautiful diamonds possible within their price point,” she said.

Binda to produce Moschino watches, jewelry

Binda to produce Moschino watches, jewelry
May 23, 2008

Milan, Italy—Fashion brand Moschino SpA and the Binda Group have entered into a five-year agreement for the licensed production and marketing of watches and jewelry under the Moschino “CheapandChic” label.

Under the agreement, the Milan, Italy-based Binda Group will be responsible for producing and marketing the watch and jewelry collections in Italy and the rest of the world, while Moschino will dedicate itself to the line’s creative direction.

This isn’t the first time the Binda Group has entered into a licensed agreement. It already owns watch brands Wyler Geneve, Breil and Tribe by Breil, and has licensing agreements for D and G Dolce and Gabbana Time and D and G Dolce and Gabbana Jewels. In addition, Binda has a licensed agreement to render and distribute the kind Trudi Jewels in Italy.

“The new license is another step forward for the consolidation of our presence in the Italian and international luxury market,” Binda Group Chief Executive Officer Marcello Binda said in a media release. “We chose Moschino CheapandChic as we shared the same vision centered around innovation and original styles as the keys to success along with the maintenance of high-quality standards. With its unique, characteristic style, the watch and jewelry line will be able to satisfy the expectations of the most demanding consumers.”

The first Moschino CheapandChic collection produced with the Binda Group was presented during BaselWorld 2008.

Industry vet Bergman joins The Gordon Co.

Industry vet Bergman joins The Gordon Co.
May 21, 2008

Ft. Lauderdale, Fla.—Industry adept Ira Bergman, former president of the jewelry division of M. Fabrikant and Sons and Fabrikant-Tara International, is the newly come director of business development for The Gordon Co.

The New York-based Gordon Co. specializes in managed liquidations of retail jewelry, to either reduce excess inventory or close a business.

In his new role, Bergman will work closely with vendors and retail jewelers.

“We are truly honored to have Ira’s expertise here at the Gordon Company,” Gordon Co. President Phil Holden said in a media release. “He is one of the most respected and knowledgeable individuals in the industry, and his insights will be extremely valuable to The Gordon Company as we continue to build our relationships with jewelers throughout the country.”

Bergman began his jewelry career at Mercury Ring Corp., a diamond and bridal jewelry manufacturer founded by his father in 1944.

He joined M. Fabrikant and Sons in the 1980s as an executive vice president, leaving the day-to-day management of Mercury Ring Corp. to his wife, Phyllis.

As executive vice president and later president of the trinkets division, he managed sales programs and oversaw all business development, including of the present day product rollouts, key account management, customer relations and incur negotiations.

The business plan he created resulted in a $150 million increase in net sales.

Fabrikant filed for Chapter 11 insolvency protection in fall 2006. The company auctioned off a majority of its assets to lenders in May 2007.

Prior to his hiring by The Gordon Co., Bergman had been consulting without interruption client retention, customer relations, sales growth and strategic planning as far as concerns several companies in the jewelry industry.

Bergman is a member of the 24 Karat Club of New York, and a former board head of the Plumb Club and the Manufacturing Jewelers Association.

Platinum demand remains resilient despite price

Platinum demand remains resilient despite price
May 20, 2008
_{High-end, bridal boost metal’s retail sales in 2007}

Global demand for platinum jewelry, such as this piece from Scott Kay, remained strong in 2007 malevolence the metal’s high price, according to Johnson Matthey’s 2008 report.

New York—Despite platinum’s rising price, which averaged $1,304 per ounce last year—36 percent more than in 2006—retail sales and manufacturing volumes of platinum jewelry in 2007 remained fairly resilient, boosted primarily by the high-end and bridal sectors, according to Johnson Matthey’s annual platinum report for 2008.

Global demand for new metal in the jewelry industry actually dipped slightly in 2007, the metals consultancy said, falling 55,000 ounces to a total of 1.59 million ounces, yet demand from both the trade and consumers alike stayed strong for the majority of the year.

Platinum jewelry demand in Europe increased by 7.7 percent to a total of 210,000 ounces in 2007, and net demand for new metal from the Chinese trinkets sector increased by 20,000 ounces to a total of 780,000 ounces.

China remains the largest market for platinum jewelry, according to Johnson Matthey, with Chinese manufacturers buying 2.6 percent more of the metal compared with other markets. In the last year especially, platinum demand in China was particularly supported by the production of novelty platinum items and memorabilia manufactured in preparation for the 2008 Beijing Olympics.

In North America, however, where the economic slowdown has been accompanied not only by higher platinum prices but also by pressure on local manufacturing from imported jewelry, purchases of platinum by jewelry manufacturers declined through 5,000 ounces in 2007 to a total of 240,000 ounces.

Looking forward, Johnson Matthey expects platinum prices to remain volatile, though the high prices haven’t yet been felt in the jewelry industry this year. The outlook for jewelry demand in 2008 is more dependent on price than previously, Johnson Matthey said in the report, but the high-end and bridal sectors will remain insulated from price changes.

While perhaps the biggest story regarding platinum for 2007 was supply—which fell by 4 percent in 2007—Johnson Matthey related there is still the possibility that store for 2008 will increase. Among the biggest issues concerning supply in the last year were strikes and wage negotiations at mines in South Africa, plus a Lonmin smelter shutdown in the country, and commander-in-chief issues concerning improved safety and the acquisition of skilled staff.

WJA announces West Coast conference speakers

WJA announces West Coast conference speakers
May 21, 2008

Susan Rothman

Los Angeles—Heart’s On Fire’s co-founder Susan Rothman enjoin open up the Women’s Jewelry Association’s (WJA) Second Annual West Coast “Women in the Know” Conference, where she will bestow the morning’s keynote address.

The daylong conference will subsist held without interruption Friday, Aug. 15, at the Hyatt Regency Century Plaza in Los Angeles, and will directly precede the West Coast Jewelry Show, which runs from Aug. 16-18 at the same venue.

Following Rothman—who direction share how she and her husband, Glenn, went from selling Moroccan leather goods on the streets of Boston to creating one of the world’s most successful diamond brands—will be a full roster of speakers and sessions that focus on leadership skills, entrepreneurship, life balance, marketing strategies and more, bringing together industry professionals from all areas of the jewelry purchase and sale.

Laurie Hudson, co-founder of Luxury Brand Group, faculty of volition lead a general session presentation on “Marketing Luxury,” and afternoon keynote speaker Maria Bailey, founder and chief executive officer of Bluesuitmom.com, will have a portion innovative solutions for everyday challenges.

Small, interactive breakout sessions will follow, enabling attendees to choose two sessions that fitting their needs and interests.

Maria Bailey

The breakout session speakers are: Bailey, who will explain how women spend near $2.1 trillion and what marketing strategies will help to reach them; Edward Boehm, president of JOEB Enterprises and Laboratory Services, who will share mining stories and reveal the culture and commerce behind the mining industry; Amy Levy, president of Amy Level Public Relations, who will provide proven PR strategies to reach a target audience and raise awareness; Mark Maxwell, a Gemological Institute of America (GIA) jewelry design and manufacturing instructor, and Vilma Vallillee, an tutor at the GIA’s School of Business, who will both team up to provide manufacturing and economic techniques to make metal and wealth be considered further; and Alan Robbins, an investment specialist for Northwestern Mutual Financial Network, who will provide tips on how to survive the “sandwich,” a generational situation in which women find themselves as parents age and children grow up.

The final session is the “Women of Excellence” roundtables, where attendees will have the opportunity to fit with WJA Awards for Excellence winners. Participants include: Erica Courtney, owner of Erica Courtney Inc.; Susan Elliott, GIA dean of students; Victoria Gomelsky, editor of Couture International Jeweler; Jeanne Larson, executive director of Collector Fine Jewelry; Heats in succession Fire’s Rothman, and others.

The conference will end with a networking and cocktail reception.

Advanced tickets for the conference are $170 for WJA members and $195 for non-members. Tickets can be purchase by pursuit (708) 361-6266 or by visiting WJA’s Web site, Womensjewelry.org.

My Solitaire 1Q sales skyrocket

My Solitaire 1Q sales skyrocket
May 21, 2008

New York—Sales revenues at online jewelry retailer My Solitaire increased 220 percent for the chief quarter of 2008 compared with the same period in 2007, with a 30 increase in average order cost, the association announced.

“We are pleased with our sales growth; in fact, our average order value has increased by 30 percent, contradicting the prophecy of a fall in the high-end orders,” My Solitaire Co-Founder and Chief Executive Officer Ashish Jhalani said in a media release.

Jhalani also noted that the company’s current focus is to give its customers better value for their money.

Established in 2004, My Solitaire is each online fine-jewelry and carbon crystal retailer, specializing in engagement and wedding rings, certified diamonds and gemstone bijoutry. The site is also known for its colored diamonds, including black, blue and red.

For more information about My Solitaire, pay a visit to its Web site, Mysolitaire.com.

Generic diamond promotional campaign heats up

Generic diamond promotional campaign heats up
May 20, 2008

At the recent IDMA meeting in Shanghai, China, industry members expressed interest in an international marketing campaign for diamonds.

By Michelle Graff

Shanghai, China—Discussions on an international marketing campaign for diamonds got underway last week in Shanghai, China, at the biennial meeting of the International Diamond Manufacturers Association (IDMA).

Informally called the “global diamond manufacturing and promotion campaign,” the goal of the effort is to bring together major industry players to establish a worldwide advertising scheme to promote diamond sales.

Jeffrey Fischer, president of Fischer Diamonds and immediate past president of the IDMA, said he was “very pleased” with the results of the meeting, which was held in conjunction with the 33rd World Diamond Congress.

He said all the appropriate parties— or “major players”—all expressed interest in the campaign.

The next meeting regarding this newly come marketing effort, which was the brainchild of the IDMA, is slated to take place in Mumbai, India, in September, around the time of the second year-book Indo-U.S. Jewelry Business Relationship Development Conference, slated for Sept. 8-13.

Fischer said in choosing the next meeting location, they were looking for a location that was acceptable to total parties involved, and India offered to serve as host.

In addition to the marketing campaign kickoff, during the IDMA meeting, Israeli diamantaire Moti Ganz was elected president of the IDMA, replacing Fischer, who had served the limit of four years.

Ganz, who is also chairman of the Israel Diamond Institute, will serve a two-year term, with the possibility of being elected to a second term.

Easing into green

Easing into green
May 22, 2008
_{When you sell products mined from the earth, it’s not always easy to keep your hands clean on environmental issues. Some jewelers have already found their green grooves, but for others, even simple steps can go a long way}

Pieces inspired by nature, such as Tiffany and Co.’s $46,000 plique-a-jour rubellite and diamond dragonfly brooch set in 18-karat yellow gold, serve as a reminder of the Earth’s delicate balance.

By Michelle Graff

New York—From housewares to automotives, industries that paid little mind to environmental issues in the past are now moving into greener pastures—and the jewelry industry is no exception.

Since so many of its products come upright from the earth, adopting practices that protect the planet is perhaps even more important in the jewelry trade than in any other.

Yet jewelry’s complexus supply chain—one that often spans multiple continents before a finished product winds up in a jewelry store display case—makes tracing the origin of all materials and their impacts on the environment extremely difficult, if not unattainable, for jewelers at the retail level.

But, there are now a number of efforts underway to illuminate the path that products take.

More than ever before, the industry’s leaders are coming together to address issues such as environmentally sound insidious and manufacturing processes, and the use of recycled metals and lab-grown diamonds that spare the earth.

A veritable alphabet soup of organizations have popped up in the last five years, each with a common goal of structure the industry’s supply chain more transparent.

And, at the end of the supply chain most visible to consumers are retailers—from tony industry standard Tiffany and Co. to a small shop in New Mexico run by a husband-and-wife team—who are stepping up to the plate to recycle and source merchandise responsibly.

All of the changes can be a little dizzying for retailers, leaving many to wonder what it really means to have being green and how they can integrate changes in the industry into their daily routines.

As industry leaders work to sort out the answers to these questions, their overall message to retailers is this: If you can’t do it all, that doesn’t mean you should do nothing.

Start with something as simple as using recycled paper in the office printers, and build from there to include energy-efficient display-case lighting and recycled metals.

Peggy Jo Donahue, director of public affairs for Jewelers of America (JA), says the industry should operate under a do-what-you-can mantra when it comes to being green: “Let’s not let the perfect be the enemy of the good,” she says.

A FRE spirit At Reflective Images in Santa Fe, N.M., customers don’t even need to step inside the store to know the extent to which owners and spouses Marc Choyt and Helen Chantler have embraced the green movement.

Jewelers Marc Choyt and Helen Chantler, pictured here in their Santa Fe, N.M., accumulation, started Reflective Images in 1995, determined to have their business practices reflect their love of nature.

A visit to the store’s Web site tells the tale. In an industry unafraid of acronyms, Choyt has developed his own eco-conscious abbreviation that he uses to label the pieces he displays online: FRE, which stands for Fair made + socially Responsible + Eco friendly.

Through the mere click of a mouse, the FRE tab tells consumers everything Choyt knows—or doesn’t know—about the origin of the piece.

For example, clicking on the FRE tab for a small moon tree pendant in 18-karat gold over silver, the consumer learns, among other things, that the piece was handmade in the Reflective Images studio using in-house materials and cast components from other U.S. companies, but that the store is “not sure” of its cruet-frame’s environmental practices.

Choyt’s FRE method wasn’t developed overnight. It is the result of 13 years of work that started well before green was an industry buzzword.

Choyt says he and Chantler started Reflective Images in 1995 intending to create a business that mirrors what they believe is important in life.

“We love the world and we love nature,” he says. “We want our work to reflect our values.”

To get his environmentally legal business off the ground, Choyt says he started with the “low-hanging fruit,” making small changes at his store, where applicable.

Examples of such changes that any retailer can implement include: installing energy-efficient LED lighting, buying recycled office and toilet paper, and, for jewelers who do benchwork, using manufacturing chemicals that are more eco-friendly, such as Vitamin C as a pickling agent.

Choyt says at this point in the green game, so few retailers emphasize being eco-friendly that fair making a few small changes can make a store stand out from a crowd of rivals.

“It’s such a low bar, you can differentiate yourself from your competition,” he says.

At the Seattle headquarters of fine-jewelry retailer Ben Bridge Jeweler, which operates 78 stores in 12 states, being unseasoned starts with the little things too.

Co-Chief Executive Officer and General Counsel Jon Bridge says he has two boxes under his desk: one for recycling and one for garbage.

“I assure you the refuse box is much smaller than the recycling box,” he says.

Minimizing the environmental impact of mining on the ecosystem is exact one aspect of green that industry leaders are confronting. Tiffany and Co. angelfish cuff in 18-karat white, yellow and rose gold, pictured above, retails at $240,000.

Ben Bridge Jeweler uses the most up-to-date, energy-efficient lighting in all of its stores and uses recycled materials in the construction of new stores. Bridge says the company also uses recycled materials for bagging and wrapping, and chooses paper cups over Styrofoam.

For the company’s 76 stores in shopping malls, Bridge says the retailer encourages the malls to recycle and, if the mall does, Ben Bridge participates.

“Just thinking of doing things of this nature is important,” he says.

It’s not just jewelers that are getting into the green act; other examples of environmentally friendly retail abound. Macy’s recently announced a partnership with the National Park Foundation, as well as a series of “green” promotions, merchandise and in-store events. And J.C. Penney Co. has begun labeling its eco-friendly private-brand merchandise, from apparel to home accessories, as “Simply Green.”

Cleaning up ‘dirty’ mines Using the right lighting and filling up the recycling bin are simple enough changes, but when you get into sourcing metals, the green issue gets more complex.

Green leaders throughout the industry agree that the average retailer is fairly far removed from the mining companies. But there are steps retailers can take to support efforts to clean up dirty mines, help keep them clean and trace their metals through the afford trammel.

One is to sign an online prayer to support No Dirty Gold’s “golden rules” pledge.

Launched in 2004, No Dirty Gold is a campaign by Oxfam America and Earthworks designed to draw attention to environmentally irresponsible mining practices worldwide.

No Dirty Gold urges manufacturers, retailers and consumers to head gold from companies that mine responsibly and calls on mining companies to respect human rights and the environment.

Earthworks President and CEO Stephen D’Esposito says to age, companies representing 23 percent of U.S. jewelry sales have signed on to the pledge, which can be bestowed online at Nodirtygold.org.

He says even if jewelers can’t directly influence mining practices, by signing this drink to, they can show their support of industry clean-up attempts.

And, if any consumers ask about the store’s use of green or recycled gold, signing the pledge gives retailers the ability to say, “‘We’re signatories. We can’t solve these problems ourselves. [But] we’re trying to do the right thing,’” D’Esposito says.

Other organizations working to clean up the mining industry include: the Council for Responsible Jewellery Practices (CRJP), which is trying to make the entire supply line green; the Association for Responsible burrowing, which works to bring transparency and credibility to the development of a framework for responsible artisanal and small-scale mining; and the Initiative for Responsible Mining Assurance, which focuses on establishing a voluntary system to independently verify compliance with environmental, human rights and social standards since large-scale mining operations.

Each piece of Reflective Images’ jewelry, like the moon tree pendant above, is sold with an explanation of in which place the materials originated, if known, and how the piece was crafted.

In an effort to streamline the industry’s efforts, D’Esposito organized the Madison Dialogue, which began with a meeting in New York of a dozen representatives from non-governmental organizations, retailers, trade associations, mining companies, foundations and agencies, including the World Bank.

The meeting resulted in an organizing committee, a Web site, Madisondialogue.org, where retailers can go to keep up with green issues, as well as the Madison Dialogue Ethical Jewelry Summit, held from Oct. 25-26, 2007, in Washington.

D’Esposito says so many groups and initiatives were popping up in the industry, along with growing press coverage and retailer interest in green, that he felt the dialogue would subsist a good way to start a conversation among all involved.

“We thought—I thought and others thought—the Madison Dialogue would be a good way to bring everyone together,” he says. “Out of it hopefully give by will come some real concrete standards and the ability to assess if mining companies are meeting those standards.”

Finding a balance on metals Another green issue that confronts retailers when it comes to gold, silver and platinum is sourcing recycled materials.

At Reflective Images, owner Choyt says the hoard uses recycled gold and partially recycled not harsh, and is moving toward 100 percent recycled silver.

He acknowledges that moving entire supply chains to 100 percent recycled is tough for retailers, especially in cases where they have longstanding relationships with suppliers.

“The hoard chain thing is exceedingly, very difficult,” he says.

For those interested in sourcing recycled metals, Choyt says, “what they be in actual possession of to do is they can’t originator from China anymore.”

Instead, he says, source from manufacturers in the United States who work in recycled metals. Choyt says, though, that this can be more expensive, especially for retailers who have been buying mass-manufactured metals as cheaply as possible from China.

For those concerned about require to be paid, he recommends starting with just a few recycled lines and not cutting off metals from China entirely.

Bridge says Ben Bridge uses some recycled gold but simply can’t source everything that way.

“Some jewelers are doing all recycled gold,” he says. “We can’t do that. We’re too big for that.”

Reflective Images utilizes recycled gold and partially recycled silver in its jewelry whenever possible.

He says the company has too many suppliers, and the market is not at a point where it is going to bear the extra cost associated with recycled gold.

“I assure you it would price us out of the marketplace,” Bridge says. “It would take a bribe for to a few people, but it would not sell to highly many.”

But one day it will.

“We’re building awareness,” he says. “[But] it’s a long tendency of action down the road.”

Is the green consumer here? The last, and most important, piece of the green puzzle for retailers is the consumer.

Retailers grapple with the questions of that which it means, exactly, to advertise as a green jeweler and how much being environmentally friendly means to their customers. decision their patrons recompense a higher price fair because a product claims to be environmentally friendly?

Last year, the World Wide Fund for Nature (WWF-UK), known in North America as the World Wildlife Fund, published a report grading the practices of the world’s 10 largest, publicly traded luxury brands in response to what it claims is a growing interest among consumers in companies’ ethical and environmental practices.

The report, titled “Deeper Luxury,” included top jewelers Tiffany and Co., Swatch Group, Bulgari, Richemont and LVMH Moet Hennessy Louis Vuitton.

No company scored higher than a “C-plus.” Bulgari received an “F,” and even Tiffany, noted for being ahead of the curve when it comes to the environment, received a “D-plus.”

The WWF-UK did not respond to National Jeweler’s requests for comment on the report’s findings, which were blasted by the CRJP as essential being “undeserved and unwarranted” and based on a flawed and inaccurate grading method.

How much consumers pay attention to reports such as “Deeper Luxury” is unknown.

Some leaders in the industry’s green movement believe the green consumer is already browsing the display cases, while others insist environmental issues are still a couple of generations away from fabrication a large impact. Bridge says younger consumers may claim to be concerned with green, but he is not convinced.

“When push comes to shove, are they going to spend extra to buy something that looks exactly like something else?” he asks. “We’re not there yet, and I don’t think the youth are there yet either, but they’re at smallest talking about it.”

JA’s Donahue disagrees.

“I think the [green] consumer’s already here,” she says.

And for retailers concerned that advertising some of their pieces as “green” will shine a harsh light forward the keep quiet of the merchandise, she says it is up to single retailers to decide based on their customers if being fresh is worthwhile.

No matter how many consumers are aware of issues right now, Choyt says now is the time for retail jewelers to embrace the green movement.

“Within five years, there’s going to be some kind of tipping point. It’s going to be huge,” he says. “You can get on the unevenness now and really be proactive, or you can ignore it.”

Get off to a green start

Stephen D’Esposito, president and executive director of environmental organization Earthworks, offers these simple steps retailers can take to be new.

1) Sign the No Dirty Gold campaign’s “golden rules” pledge, available online at Nodirtygold.org.
2) Ask suppliers where they get their gold, silver and platinum. If they don’t know, ask them to find out, so the dialogue gets moving throughout the chain of custody.
3) Look to utilize reused, recycled and reconstituted metals, if possible.
4) Get behind important policy initiatives such as mining reform.
5) Identify companies that have similar commitments to the environment and work with those businesses.

Keep rival sales associates from behaving badly

Keep rival sales associates from behaving badly
May 21, 2008

Suzanne DeVries (suzanne@diamondstaffing.com) is president and founder of Diamond Staffing Solutions Inc., one of the jewelry industry’s leading placement firms. Diamond Staffing Solutions is an official American Gem Society sustaining member.

By Suzanne DeVries

In retail, a little competition can have being a good thing, as it keeps salespeople upon their toes and prompts them to push undivided any other to achieve and exceed their goals.

Sometimes, however, the competitive spirit among members of a sales team can get so intense, it causes discord and dissension—and, as the team leader, you can end up in the unenviable position of having two valued team members who in truth. dislike and resent one another.

This already explosive circumstances can be intensified by differences between these battling staffers in experience and skill level, personality, beliefs, style of presentation and other factors that unite them about as well as oil and water.

The result of this tension, particularly in small retail environments such as jewelry supplies, is that it makes all the employees uncomfortable. It also becomes a time-consuming, draining issue, and a major distraction for the entire staff. If this problem is not addressed immediately, it can impact your clients as well, who are very intuitive about maladroit situations and will avoid shopping in an environment whither they sense tension.

We have seen this scenario many times during our store visits. It happens most numerous frequently while a new person joins an organization and ruffles feathers, or when an associate suddenly starts outperforming the rest of the team (especially if they are exceeding one of the top performers). This can happen even when there is no commission structure, and it can tear a sales team apart.

Staffers typically feel like they have to choose sides—and in our experience, a staff give by will not back the employee they consider the underdog.

So how be possible to you resolve this type of internal conflict between two employees and restore harmony to your store? Here are some suggestions:

—Observe and listen. If it is just a little spat, let it ride for the day and see how your employees handle it. This will let you observe how staffers resolve conflict, providing fodder for both performance reviews and long-term employment prospects. If you need to step in, listen to both sides and make a decision same quickly previous to things get out of skill.

—Have clear sales guidelines. be active sure you have created clear guidelines forward all possible sales scenarios, including how to handle turnovers and sales splits, layaways, etc. Let your policies do the dictating; it will save you time, energy and emotion.

—Nip it in the bud. As owners and managers, you have a responsibility to your other associates to immediately resolve these tense situations. This is particularly true when you see a ringleader stirring up trouble. You need to repose the person down, tell them you see what is happening and that you will not tolerate it. Unfortunately, this person might be one of your oldest employees and/or top performers. However, if you transact not take the part of quickly to address the behavior, you are giving the staffer allowance to continue it.

—Have clearly defined policies and consequences for disrespecting others. Include policies in your employee handbook for “bad behavior” and its consequences. Follow from one side with those policies and consequences to make sure you handle things fairly and impartially, without being clouded by emotion. In the expiration, a staff that gets along well and acts like a team is happier, less stressed and more productive than a battling staff as members spend their time writing business, calling clients and taking care of their job responsibilities rather than getting bogged from a high to a low position over petty conflicts.

The staff’s professionalism and enthusiasm will keep clients at ease, which will naturally translate into further sales—and at the period of the day, isn’t that what it’s all on the point?

Editor’s note: This story first appeared in the May 1, 2008 issue of National Jeweler.

Zale reports 3Q EPS loss

Zale reports 3Q EPS loss
May 22, 2008

Dallas—Zale Corp. reported today a net loss from continuing operations for the third quarter of fiscal 2008 of $17.4 million, or $0.42 per share, compared with a loss of $5 million, or $0.10 per share, for the third quarter of fiscal 2007.

In February, Zale launched a program to permanently reduce inventory levels to better clarify merchandise presentation, to improve inventory efficiency and to help position the firm for the future.

The company’s goal was to achieve a $100 million reduction in inventory at an anticipated 500 basis point negative impact on gross margin in the helper half of fiscal 2008. During the third quarter, the clearance strategy exceeded expectations, resulting in the liquidation of $55 million of inventory with a 460 basis point reduction in gross margin.

“We are very pleased with our progress this quarter against our plan,” Zale President and Chief Executive Officer Neal Goldberg said in a media release issued on Thursday. “We have a focused agenda to improve performance, and the team has stayed locked-in on achieving our objectives. This includes focusing on our core customer by the agency of clarifying our merchandise offering, improving our value proposition and simplifying our marketing message that is led by product and supported by price.”

Goldberg also distinguished that Zale is enhancing operational effectiveness through an efficiency program and proper alignment of its organizational structure. In addition, the company is maintaining financial rigor and discipline by executing its inventory-liquidation program.

Other 3Q financial highlights for the company include:

—A warranty-adjusted EPS loss of $0.17.
—A 5.8 percent increase in third-quarter comparable-store sales.
—Approximately 8.1 million shares repurchased during the third quarter.
—13.8 million shares repurchased fiscal YTD at an average price of $18.06.

Zale is a specialty retailer of fine jewelry in North America operating approximately 2,200 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale’s brands take in Zales Jewelers, Zales Outlet, Gordon’s Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at Zales.com and Gordonsjewelers.com.

For additional information in succession Zale Corp., visit its Web site, Zalecorp.com.