RAPAPORT... It’s intriguing when a retailer says he never sold “new” jewelry until the 1970s, but that’s the case with Jim Rosenheim, chief executive officer (CEO) of Tiny Jewel Box. The jeweler, who is celebrating 51 years in the business, began working in his family’s Washington store when he was in his teens. The senior Rosenheims’ business, founded in 1930, sold estate and vintage jewelry. “From 1944 until 1970,” says their son, “we never bought new anything.”
Although he still has an appreciation for vintage jewelry, Rosenheim says that when he joined the family business, he was intrigued by different types of jewelry, ranging from high-fashion Italian designs to American Craft designers. He went to Italy and discovered some then-unknown brands, such as Vendorafa Lombardi and Garavelli, which he introduced to the American market. He attended the American Craft Council’s outdoor show in Rhinebeck, New York, and bought jewelry from then-fledgling designers David Yurman and Paul Morelli.
Gradually, the business evolved, says Rosenheim, and the ratio of sales changed to about 70 percent vintage, 30 percent new. While his jewelry sales were flourishing, Rosenheim read an article about the corporate gift business and decided to try to incorporate the idea into the store.
Space, however, became an issue: The store was only around 1,500 square feet. A solution presented itself in the early 1990s, when the elegant, six-story Elizabeth Arden building came on the market. The prime property, listed on the National Register of Historic Places, was located just two doors from the Tiny Jewel Box. Rosenheim bought the entire building. Today, the first three floors house jewelry, gifts and watches; the second two, offices and kitchen and the top floor, the corporate division. Within the next few months, Tiny Jewel Box will expand into the next-door building, adding another 6,000 square feet.
A Large Inventory
The store’s tagline, “If it’s not special, it’s not here,” is hardly an idle boast. Tiny Jewel Box offers scores of top brands, not only in fine jewelry, but also in watches, gifts and fashion accessories. Rosenheim and his staff of 40 — which includes his wife Marcia and son Matthew, the company president — regularly attend shows around the world that feature fashion merchandise as well as jewelry. Rosenheim recalls returning home from the prestigious Maison & Objet trade fair in Paris one year with 240 crates of exclusive European merchandise.
The jewelry bill of fare includes a healthy dose of diamonds, including the store’s exclusive brand, the Double Brilliant Diamond.™ Introduced a few years ago, this 104-facet cut took two years to develop. Other branded diamonds include Hasenfeld-Stein’s FireMark™ and the Elara Diamond.
Top-quality diamonds are a passion, and Tiny Jewel Box sells more D than H, says the retailer. Top sellers are D color in SI1 clarity in ideal cuts. Average diamonds are F to G, VS1 and VS2. “I try not to sell lower than SI1 unless the diamond is extraordinarily well-cut,” Rosenheim says. Diamond engagement rings are not a major part of the business, contributing about 10 to 15 percent to overall sales. He terms them a “valuable, important and critical part of the business,” but says that better margins come from exclusive mountings and bands.
Designer jewelry is another important part of the business, and the Tiny Jewel Box inventory includes such top brands as David Yurman, Alex Sepkus, Temple St. Clair and Penny Preville. Watches were added in recent years, and corporate gifts, fashion and home accessories make up the balance. In each category, there are a number of exclusive product lines found only at Tiny Jewel Box. “I’ve always had two goals for my store,” Rosenheim explains. “First, I wanted to create a one-stop shopping experience, and second, I didn’t want just one revenue stream driving the business.”
Rosenheim, who says he is committed to being a one-store operation, credits his success to his company’s strong internal and external framework. While “ego and heart drive much of his decision-making” in selecting product and designers for his store, he is backed by a strong financial team that provides the data to make educated choices from a budgetary point of view. “Pragmatic decisions have to be made,” he says. “It’s sometimes a difficult emotional balance.”
Catering to CustomersHowever one analyzes the numbers, Tiny Jewel Box has indeed become a premier destination for upscale shoppers. On average, the store attracts about 250 new paying clients per month. And according to past surveys, 70 percent of those shoppers return within 12 months.
One-third of the store’s total business comes from outside metropolitan Washington. Regular clientele include a core of Washington insiders, business tourists and transient government employees who work in Washington but live outside of the region. Rosenheim says it’s not unusual for an assistant to a top-ranking politician or attorney to call and arrange a private appointment for his boss to shop for a gift. Rosenheim consults the client’s list of previous purchases, notes the occasion for the gift and has an edited selection of pieces ready to show. Many times, the client comes in, looks over the choices, selects one and makes arrangement for payment before inquiring the price.
What do these high-powered customers want? Not flashy styles, big diamonds or high-fashion designs. They want jewelry that is tasteful, unique and high quality. Rosenheim says that while Washington’s big galas require elegant dress, there is usually a low-key display of jewelry. “A woman would rather wear a $200,000 Tahitian pearl necklace than a big diamond.”
Overall, says the retailer, Washington is a serious town and while many of the residents are well-to-do, they are nevertheless conservative — and almost always pressed for time. That’s why it’s critical to know what they want, offer them a wide selection of merchandise — 11,000 pieces of jewelry are in the store’s inventory at any one time — and be able to edit it to suit each shopper’s needs. Sales personnel are required to keep active records of every customer’s purchases plus a wish list. “Our customers rely upon us to have the right items and to know their needs.”
In addition to its personal service, Tiny Jewel Box maintains a busy special-events schedule. It includes trunk shows, both inside and outside of the store — sometimes multifloor events in which several brands participate — VIP galas in which clients receive hand-delivered, engraved invitations and intimate dinners featuring a designer and a handful of top customers. Finally, Rosenheim, who is on the board of Jewelers for Children, says that throughout its history, Tiny Jewel Box has actively supported a wide range of worthy “hometown” causes in the nation’s capital by donating items or contributing in other ways to social and charitable events.
Article from the Rapaport Magazine - October 2008. To subscribe click here.