The mall of choice for our undercover retail report was one in an affluent New York satellite town. With over nine jewelry stores competing for sales, we thought that this would be a good place to start.

 

It may have been a freezing cold day but I didn’t really care for finally I was doing the job of a lifetime - I was being paid to shop. Hat, scarf and glove defrocked it was time to attack a shopping mall. The mall of choice for our undercover retail report was one in an affluent New York satellite town. With over nine jewelry stores competing for sales, we thought that this would be a good place to start. The story went that we were looking for a three-stone diamond pendant or ring for an upcoming birthday. Although we pre-set a price range of a few thousand dollars, I had set aside a $100 bill in the hope that one store could persuade me to buy a ‘little something’ before I left. Before we start our report, let me just add that the publisher of IDEX was more than happy when I returned to the office and presented him with his $100. Find out why...

 

1. “Go Home and Read This Book”

First stop was the upmarket branch of a large jewelry chain, nestled between luxury retailers such as Coach and Louis Vuitton. Competing for the consumers’ bucks against these top dollar brands would surely mean that this ‘retail experience’ would be up there with the very best. The marbled entrance and gold lettering of the shop immediately presented the impression that this stop would offer a truly luxurious shopping moment or two. As I had been pre-warned, the empty shop didn’t put off this determined jewelry customer. I had, for all intents and purposes, a few thousand dollars to spend, courtesy of a loving partner on a birthday gift. The choice was mine. Today it would be a three-stone pendant or earrings - or whatever the sales associate could gently persuade me was the item of choice.

 

Marilyn didn’t appear too happy to be taken away from the silence she had been enjoying prior to my arrival. Where was the cheerful smile? In this case it must have been frozen off outside. The display case of Arctic Diamonds was the first to catch my eye. I explained to Marilyn what I was looking for and then asked her what Arctic Diamonds were. She responded that these were diamonds from Canada. Again silence.

 

Engaging the customer in conversation apparently wasn’t high on the list on this shop floor.

 

When asked about the diamonds, their color and clarity, Marilyn presented me with a brochure called “The Diamond Book”, suggested I take it home to read and then come back. The booklet itself was very well presented and informative, in fact for diamond purchasers it explained all aspects of the 4Cs. It was a pity though that even with an empty shop the sales associate appeared disinterested in explaining the basics to the customer.

 

Moving On To the Purchase

Marilyn was under the impression that I was willing to spend quite a significant sum on this special gift. “However,” she explained, “prices for what you want jump from $3,600 to $9,600, so you should stick at the $3,600 market.” I left the store with the brochure and the distinct feeling that I wasn’t really welcome there. That was a bit upsetting considering I’d put on my most expensive outfit and borrowed a friend’s (yup the mall babe again) designer coat and ludicrously expensive Hermes handbag.

 

Highs

The store was beautifully designed, as one would expect a luxury retailer to be. Soothing, opulent, with cases displaying a good selection of items, but not overcrowded as many seem to be.

 

Lows

Spend time with your customer, if they’re going to give you a significant (or even not so significant) sum of money, they want to feel that you’re interested in them, not just their credit.

 

Whatever they ask, no matter how inane it seems, answer them. Don’t send them away to do their homework. They won’t come back.

 

If the amount they are willing to spend is more than the item they eye, why not try pointing their attention to a ‘little extra’ - a small pair of earrings, a bracelet. You know they’re prepared to spend. So what if they see something that is far out of their price range? It doesn’t cost anything to let them try it on and who knows, for next time...

 

As for Marilyn, that is one store to which I wouldn’t return in a hurry.

 

2. When it’s A Case of Too Much

The next store on the quest for the ‘ultimate retail experience’ was a branch of another mass market chain. In this case, the sales associate was probably the friendliest and sweetest one in our little story. Unfortunately, her store let her down. Dear Eileen was quite disappointed when she realized that they had very little (just two) three-stone rings. Both of them were ‘50% off’ and were selling for around $800. She told me that they would soon be getting in some more inventory, but stock was rather low after the holidays. ‘But,’ she asked, moving over to another case, ‘have you thought of a pendant?’

 

Again the selection was poor and again everything was half price. However, Eileen was more than happy to answer all my questions about diamonds. She succinctly and accurately explained the 4Cs, then told me she’d just finished her first gemology course. “I just love diamonds, it’s great to have a job when you work with things you truly love,” she enthused. This was just the attitude I’d been waiting for. Finally I was feeling that I was going to buy something special and that the sales person wasn’t just doing her spiel. She then demonstrated the difference in stones, showing me a carater SI, D color compared to the $800 items she’d shown me previously. As for other issues, I mentioned the thorny conflict diamond issue. Eileen, (unlike many others) was well briefed on the subject and proceeded to tell me about De Beers, Russia and Canada and that the company she worked for bought its diamonds with a warranty from the suppliers that they were ‘conflict free’. She even briefly touched on the Kimberley Scheme, explaining the diamond industry had now implemented measures to make sure diamonds are ‘conflict free’. I was impressed. She knew her stuff.

 

Unfortunately though, the lack of inventory and the confusing layout of the store was off-putting and far away from the ‘luxury’ experience most jewelry consumers expect. Display cases were overloaded with stock - all at discount. Moving around the store was like navigating an obstacle course and there were signs everywhere advertising; ‘Valentine Specials’, ‘Turquoise Discounts’, ‘Trade-Ups’ or ‘Try our layaway plan’. There were simply too many and Eileen, while being enthusiastic about her product, didn’t mention any of them.

 

On the way out, a turquoise ring caught my eye. It was marked $70 - discounted by 50% of course. After pausing to look at it for a few moments, I mentioned to Eileen, who had returned to her chair behind one of the displays that it was ‘really cute’. “Yes, isn’t it,” she beamed and went back to re-arranging the display case. I so wanted her to try and make that final sale. But, no such luck. Ah, Eileen, why did you let me down like that?

 

Highs

It makes such a difference to have an enthusiastic and knowledgeable sales staff. The customer feels that the purchase they’re making is special and that the retailer really cares not just about the bottom line, but the product it is pushing.

 

Smile, smile, smile. Thank you Eileen.

 

Lows

Overloaded display cases are confusing and off-putting. You never know what you could be missing out on.

 

If there are sales or specials advertised, make sure that not only your staff is fully aware of them but your customers, too. Don’t rely on the consumer taking the time to read them all. Make sure sales staff is well-trained in what’s on offer and relate the news to consumers.

 

‘It’s cute’ - that means the customer already likes the product - make sure she leaves with it.

 

3. The Good, the Bad and the Indifferent

Now sweet Latrice was a charming girl, but this episode just goes to show that staff training is so, so important.

 

This store got my vote for the quote of the month - when I mentioned that I had read something in the New York Times about conflict diamonds, Latrice was somewhat confused about what I was talking about, so I briefly explained the issue and asked where they bought their diamonds from. Sweet Latrice was happy to set my mind at rest:

 

“Don’t worry,” she said, “none of our diamonds come from Africa. They all come from Texas.”

 

On the other hand, Latrice was probably the most helpful salesperson I encountered. She actually seemed genuinely happy to serve. This store was holiday-geared with Valentine Bears under huge signs advertising ‘0% interest until 2005’. But, I wasn’t here for a bear, I was here for three diamonds hung on a pendant. The diamonds in this store are firmly divided into the branded (the store’s own brand) and the generic. Only the branded diamonds come with certificates, even if you’re going to pay $3,000 for a non-branded solitaire, you’re not going to get a lab certificate. I asked Latrice why this was so. She was well-versed in the added benefits of buying the store name diamond, the extra facets etc. She knew just what the certificates provided. And, she continued, if I was worried about buying a diamond without a certificate - we were looking at a _ carater solitaire - ‘then you can always take the stone to an appraiser to re-check what it’s worth’. Not exactly re-assuring sales talk.

 

After chatting with Latrice for several minutes - her outgoing personality almost made me want to buy something just because she was so charming - we settled eventually on a 3-stone ring of the branded collection.

 

Unfortunately, the comment that all their diamonds come from Texas was about to be surpassed by the Monty Pythonesque incident that occurred next.

 

The certificate for the ring couldn’t be found. Latrice searched high and low but to no avail. I asked anyway what the stones’ color and clarity were. But, without the certificate, there was no way of knowing. The ring wasn’t even tagged with the details. “I can’t sell you this ring without the certificate,” she bemoaned while hunting through a haphazard pile of elegantly presented GIA certs. In the end, no certificate so no sale, no matter how desperate the buyer might be.

 

For Latrice, though, there was a silver lining to this cloud. She tried the ring on before putting it back in its case and decided that, yes, this was the ring her boyfriend should buy her. “You know what,” she grinned, “I’m not going to take it off. I love it. I’m sure we’ll find the certificate in the end - I just have to have it.” That’s certainly showing a passion for the product, though perhaps slightly too much for the ring-less client.

 

On the way out, I tried once again for Latrice to sell me something. Standing in front of a display of earrings, all under $100, I called over Latrice - who was still admiring her certificate-less ring. “Wow,” I enthused, “are all these under $100, there are some really great earrings.” “Yup,” she replied, twisting her ring around. “Hey,” she called as I left once again empty handed, “have a great birthday.”

 

Highs

Latrice made a great connection with the consumer. It’s a great feeling to be treated as a friend, not a customer.

 

The holiday decorations, in this case for Valentine’s Day, certainly put the consumer in the mood.

 

Latrice was good in pushing the branded store product. She very deftly turned attention away from the generic stones onto the more expensive branded goods. In fact, within minutes I had been convinced that it was well worth paying the extra for the added facets and ‘brilliance’.

 

Lows

‘While staff probably aren’t expected to know absolutely everything about the goods they sell, giving out erroneous information is much, much worse than simply telling the consumer: ‘I don’t know, but I would be happy to find out’.

 

Don’t have goods on display that you ‘can’t sell’

 

Stay with your customer until they leave the store. They may come in for one thing, but can easily walk out with something else, unexpected. Don’t miss those final moments before they leave the store. You never know.

 

4. Wipe off That Mayonnaise

There is no better way of making a consumer feel they are in a Turkish Bazaar than a luxury retailer telling them that “just for today everything is 40% off”. This is what happened at the third stop of the day. In this event, I was approached upon entering the store by a sales associate who was probably in the middle of eating lunch judging by the amount of mayonnaise smeared across his mouth. By the smell - it was probably a Big Mac, with a side order of onion rings. Not a pleasant experience and certainly not one that makes a consumer want to stay in the store.

 

Here the stock was plentiful and there was a wide array of three-stone pendants in a range of price-points. After examining one that was originally $3,500, but for today only, was selling for $2,000, I asked the clerk if it came with a certificate. “Of course,” was his reply, “all our diamonds come with certificates.” For a consumer this is reassuring but for an industry journalist it was rather puzzling. “Even these,” I asked, pointing out a ring that was retailing for $500 - with, of course, 40% off for the day. “Oh yes,” he replied, re-iterating that all stock came with certificates. This was curious. I delved further. “So,” I asked, “all your diamonds come with certificates from a gemological laboratory?” And this is where the full story was revealed.

 

According to the salesman “gemological certificates are very expensive, but we [not a well-known retail chain by any means] offer our own store certificates, which are just as good”. He then proceeded to tell me “don’t worry, you can trust us.” Call me old-fashioned, but I never trust any one who says “trust me”.

 

I was rather pleased to make a quick exit from this retailer for not only was the lay-out shoddy, with calculators, pens, paper and even a bottle of glass cleaner strewn across the counter-tops, the displays were badly organized making it difficult to get a good feel of the goods on offer. Worse than that, throughout the entire time the gentleman was telling me about the pendant - and the fact that all their diamonds come from Amsterdam - his attention was constantly wandering, perhaps back to his unfinished Big Mac, or what his colleague was saying on the phone and what the other sales assistant was telling another customer.

 

Lows

‘If you are really going to have one day sales then they must be well-advertised prior to the event, heavily promoted in-store and, if you’re in a mall, make sure that announcements throughout the day draw shoppers’ attention to the spot sale. Otherwise, as with this case, you lose the consumers’ belief that it really is a sale. If the price is 40% without any negotiation, a consumer wonders what really is the value of the piece.

 

Everyone needs to take a break - but not on the shop floor. Make sure lunch is eaten in a separate room. Believe me, the after-smell of re-heated food wafting across the store is not conducive in persuading customers to stay in the shop for any length of time.

 

Mayonnaise!! Need we say more?