It is a jewelry family dynasty that has never lost its passion for the business. Presently, Gary Michaels Fine Jewelry in Manalapan, New Jersey — named for Gary and Michael Littman who are the sons of Leonard and Herb Littman, respectively — is building its business on a firm foundation of reputation, experience and diamonds.
“I’d estimate about 70 percent of our business comes from diamonds,” says patriarch Leonard Littman, chief executive officer of the new venture. “We offer a tremendous selection of unmounted stones and diamond jewelry. In fact, our advertising states we have the largest selection of diamonds in New Jersey.”
While the range of styles may be great, the quality criteria are deliberately narrow, explains Littman. “We sell nicely made diamonds, from I1 to internally flawless and we use VS, better color goods.”
The customer base — a large contingent of young professionals — in this upper-market suburban town is highly desirable by most retail standards. But this demographic can also have its drawbacks. Generally, these customers already have their diamond engagement ring so the trend is away from traditional bridal jewelry and more in the direction of diamond accessories.
Designer Brands
Another positive factor is that this type of clientele responds well to designer brands and seeks out top-quality merchandise, says Littman. Among the upscale selections in the store are David Yurman, Roberto Coin, Mikimoto, Kwiat and Cartier. Despite the preference for brands, however, the purchase of a diamond is most often based on the quality of the stone itself rather than on a specific brand name. “Our customer is looking for the right diamond,” says Littman.
The majority of diamond sales are in the 1 carat and above range and customers expect a certificate. “Shoppers are much more knowledgeable, especially at this level,” says Littman. The average sale of diamond jewelry at the store is $1,400. In terms of postsale services, Gary Michaels Fine Jewelry provides the standard services of cleaning, repair and appraisal. According to Littman, the store will take an occasional trade-in, but there is no formalized policy for this service.
Building a Base
In a seemingly opposite direction from many other upscale jewelers, Gary Michaels is actively courting a slightly less moneyed and sophisticated shopper. “We’re trying to find a way to appeal to the mall customer who buys diamonds in the quarter to half-carat range,” says Littman. The logic is that in time these generally younger shoppers will be turned into regular customers.
The retailer does a good deal of targeted advertising and special events to attract this market segment. In addition to advertisements in local newspapers and magazines, billboards dot the immediate region with the claim that the store has the “largest diamond selection in New Jersey.”
In-store events include a number of charity tie-ins with high-profile organizations such as the American Cancer Society and the Jewish Federation. For example, one recent two-day party featuring cocktails, hors d’oeuvres and the music of a guitarist netted the store a substantial six-figure return. The mailing list was comprised of names purchased from upscale lists, including American Express Platinum.
To encourage shoppers to come in to the store during the recent holiday season, Gary Michaels regularly hosted two special events in the month of November — Men’s Night Out and Ladies’ Night Out. Ladies’ Night Out was about one week before the men’s event and female guests were invited to browse the showcases and fill out wish lists for gifts. Men’s Night Out featured entertainment from a local radio personality, light music, food and beer.
Starting Over
The original Littman Jewelers — an established name in the Northeast — was sold to Fred Meyer Jewelers in 1998. However, by 2002 the Littmans were ready to start again. They surveyed various locations and finally settled on a location on Route 9 south, a highly trafficked highway in Manalapan — a growing community in central New Jersey.
In December 2002, the family opened Gary Michaels Fine Jewelry, a 6,000-square-foot, freestanding store adjacent to the upscale Epicentre shopping center. In addition to the favorable location, Littman says the key to the store’s success is designer brands and a substantial inventory. Gary Michaels boasts about an $8 million inventory, compared to the average $800,000 in the former Littman’s jewelry stores.
To reinforce the friendly ambience, the store offers a “great atmosphere” in which to shop, says Littman. The interior space, designed by Houston architects Brand+Allen, combines natural light, exotic woods and polished steel to achieve a modern, spacious look. Long straight showcases are balanced by gently curving cases, a series of picture-frame displays on the walls and a lot of polished floor space.
A large center skylight — an unusual feature that adds the element of natural light to the store — separates two drop ceilings with inlaid lights. Soft music creates an unrushed, pleasant atmosphere and an espresso/cappuccino bar is positioned to overlook the jewelry repair area. This serves a dual function of allowing customers to view the precise work of a bench jeweler as well as being able to keep an eye on their jewelry while it is being cleaned or repaired. For added entertainment, there is a plasma-screen television in the sitting area.
A final, essential element for a successful retail operation, maintains Littman, is having a professional and knowledgeable sales staff. “In addition to the technical information, our salespeople are very skilled,” he observes. The staff includes a former Littman’s store manager and associates who have worked at Neiman Marcus and Fortunoff. Most of the staff are either graduate gemologists or have completed Gemological Institute of America (GIA) courses.
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