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Jewelry is meant to be timeless, but the process of buying jewelry \u2014 particularly big-moment purchases like engagement and wedding rings \u2014 has certainly changed. Gone are the days of a prospective boyfriend seeking a promotion to fianc\u00e9 sweating out whether the ring he\u2019s chosen will enamor his bride-to-be. Now, for an increasing number of couples \u2014 particularly among Gen Z \u2014 it\u2019s a collaborative process involving both partners.<\/p>\n
That\u2019s one of the key findings from recent consumer research conducted by Helzberg<\/strong>, the iconic jewelry retailer founded in 1915. \u201cGen Z couples are particularly engaged in the process\u201d of buying rings, said Mitch Maggart, EVP and Chief Retail Officer at Helzberg in an interview with Retail TouchPoints<\/em>. \u201c84%<\/strong> of Gen Z proposers said the recipient had shown them what they wanted prior to the shopping experience. Overall, we\u2019re seeing more couples shopping together.\u201d<\/p>\n Now Helzberg is testing two<\/strong> new stores designed to provide an immersive shopping experience that fits today\u2019s consumer: one in Garden City, N.Y.\u2019s Roosevelt Field mall, and the other in the upscale Dallas Galleria shopping center. The stores feature a designated Custom Bar area that includes a hospitality space where shoppers can relax, as well as high visibility into the jeweler\u2019s craftsmen room through two large windows. There\u2019s also Helzberg\u2019s proprietary GEMS (Gem Evaluation and Magnification System) device, which displays the quality and beauty of the pieces with a two<\/strong>-camera system and a large 4K definition screen.<\/p>\n Maggart revealed how the test stores will provide a touch of theatrical drama to the jewelry-buying experience, as well as what Helzberg hopes to learn from them before potentially expanding the concept to other locations.<\/p>\n Retail TouchPoints: What\u2019s the basic concept behind these new Helzberg store formats?<\/mark><\/em><\/strong><\/p>\n Mitch Maggart:<\/strong> Helzberg is in the relationship business, and we\u2019ve always provided a high-touch shopping experience. We feel we exist to help people in the most important parts of their lives. These new concept stores provide an elevated luxury experience, with a nod to our heritage \u2014 we\u2019re not walking away from more than 100<\/strong> years of innovation.<\/p>\n For these stores the concept was that, as opposed to carrying massive amounts of inventory in showcases, they would have a very strong focus on customization, education <\/strong>and a seamless blend of in-store and digital experiences<\/strong>. They also build on our rebrand from last year, when we updated the brand and its colors, moving from burgundy to various shades of blue.<\/p>\n The stores will have an edited, curated assortment of products, including products that we wouldn\u2019t have necessarily carried in the past: a selection of elevated pieces with large diamond carat weights for wedding and engagement rings, plus expanded fashion jewelry at higher price points. It\u2019s all to attract a wide variety of consumers.<\/p>\n RTP: Why the strong emphasis on customization?<\/mark><\/em><\/strong><\/p>\n Maggart: <\/strong>Our survey revealed that 47%<\/strong> of shoppers rate the ability to customize their ring as very important, and 76%<\/strong> said they would invest more to have a one-of-a-kind ring created for them. That\u2019s a massive change from decades past, and I\u2019ve been in jewelry my whole life, including 35<\/strong> years with Helzberg.<\/p>\n We also have a big emphasis on customization on our website; we recently launched our Love & Marriage Studio, which allows shoppers to build what they want themselves before coming into the store, where they can validate their choices and make the actual purchase. The Custom Bars provide a dedicated space in the new stores where people can get comfortable and design the piece together, and the view into the craftsmen\u2019s room gives them a glimpse into that world of expert craftsmen that they may never see anywhere else.<\/p>\n There also are additional digital capabilities, including a kiosk where customers can self-serve or have a guided experience with a Helzberg associate. Shoppers can tap into the Love & Marriage Studio from the kiosk, and we can connect with them where they left off. Other resources include a video series on the buying process and education on the \u201cfour C\u2019s\u201d of diamond purchasing: cut, color, clarity and carat. We like to say that at Helzberg, there\u2019s a fifth \u201cC\u201d that stands for \u201cchoice.\u201d<\/p>\n All of this is designed to instill confidence in the shoppers\u2019 buying journey so that they feel really good about their final decision. The survey found that 83%<\/strong> of couples say the ability to purchase in-store is important to them, and approximately 60%<\/strong> plan to consult with a jeweler and make their purchase in person.<\/p>\n RTP: Why did Helzberg choose these locations to test this new format?<\/mark><\/em><\/strong><\/p>\n Maggart: <\/strong>The Roosevelt Field store is an existing store; it\u2019s been operating for close to 20<\/strong> years, and it\u2019s a very strong store in one of the best U.S. malls. It\u2019s more typical of our mall-based stores, which average 2,000 to 2,500 square feet<\/strong>. Our off-mall stores can be larger, sometimes up to 4,500 square feet<\/strong>.<\/p>\n The Dallas store is a net-new store for us, although Dallas\/Fort Worth is a heritage market for us. We\u2019ve never operated in the Dallas Galleria, and that\u2019s a great place for an elevated concept. The Dallas store has a smaller footprint, 1,400 square feet<\/strong>, and we also wanted to find out if we could operate in a great location that\u2019s that small. We want to attract new, younger customers who are at the age at which they\u2019re ready to marry.<\/p>\n RTP: What kinds of KPIs will you be looking at from these stores?<\/mark><\/em><\/strong><\/p>\n Maggart: <\/strong>We offer an \u201cendless option,\u201d to help customers find whatever product they\u2019re looking for [even if it\u2019s not available at the store], so we\u2019ll be looking at the penetration of owned inventory, versus these \u201cendless\u201d options, versus what\u2019s created on a custom basis. We\u2019ll also be looking at the average transaction [amount]; we\u2019re looking for a significantly higher ticket in these stores.<\/strong> Other measurements will be whether our craftsmen got involved, and did we use CAD [computer-aided design] tools to design the ring from the ground up?<\/p>\n Additionally, we\u2019ll look at the mix of fashion versus bridal sales \u2014 is that mix different from what we see in a typical store? Of course, we\u2019ll also examine conversion rates as well as whether we\u2019re attracting new versus already active customers.<\/p>\n RTP: What can you tell us about Helzberg\u2019s growth plans?<\/mark><\/em><\/strong><\/p>\n Maggart: <\/strong>We\u2019re actively seeking new locations in heritage markets where we have high brand recognition. That\u2019s in the Midwest for the most part, including several cities in Texas but also Phoenix, Denver and Kansas City, Mo., our home town, as well as Florida. Additionally, we\u2019re refreshing our entire store fleet to bring them up to a more modern look.<\/p>\n In terms of the new format, we need to learn a bit about these two<\/strong> stores and their operations. Fortunately, they\u2019re both opening before Thanksgiving, and we expect to learn a lot more from the holiday season.<\/p>\n<\/p><\/div>\n