Service is the independent Jewelry store key

Local jewelers show the way.

Despite the concentration of jewelry retailers operating under the same corporate logo, small independents remain a force in the industry.

Unlike the ever-increasing disappearance of small retailers selling books, hardware, bakery goods, electronics, appliances, clothing, shoes and other consumer goods, independent jewelers still retain a large share of the market, said Richard Feinberg, director of Purdue University's Center for Customer Driven Quality,

"It's interesting because a one-store independent can make it in the jewelry industry," he said. "It's unusual in the market."

A survey by the Jewelers of America found that independent mid-range jewelry stores saw the largest sales growth in 2004, with an increase of 8.1 percent. High-end, independent retailers' sales grew 5.2 percent, according to the survey.

But the shakeout hitting the industry has decreased the number of companies by 10 percent since 2000, according to National Jeweler magazine.

"Those that remain are being forced to substantially professionalize," it says.

Feinberg said he once thought consumers stayed loyal to their independent jeweler because of "trust issues."

"I thought that people didn't want to buy gold and diamonds from someone they didn't know," he said.

"But online jewelry sales are growing. High markup in one thing that allows them (independents) to compete. They have a very high profit margin."

Charlie Halpern, who co-owns Albert’s Diamond Jewelers in Schererville with his brother and nephew, said Albert's ability to meet and exceed customer expectations is one of its keys to success.

The store does intense local advertising, has a $10 million inventory that includes designer brands as well as more affordable offerings, has experienced sales associates, and on-the-premises jewelers who do custom work and repair

"The owners are on the premises all the time," Halpern said.

"We are here to greet our customers. People can always talk to one of us. We do our own buying and have a feel for the customers."

Carol DeVries-Mulder, owner of Schererville's Jewelry by DeVries, recently closed the business after 20 years because of her health rather than the health of her store's revenues.

Although competition has escalated, there is room in the market for everyone, and more independent jewelers retire than fail, she said.

"Right from day one you have to be different," DeVries-Mulder said.

"You have to provide something different from the majors. Customers like being able to see the same person, It's providing more service than anything else that keeps you in business."

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