Others have higher expectations and are underwhelmed by the run-of-the-mill feel of your typical mall retail environment. One major drawback of this business model is that most store associates will have minimal expertise in the world of jewelry and precious stones. Because retail outlets experience high worker turnover levels, this lack of training and industry knowledge is somewhat inevitable.
So if you walk into a REEDS shop at your local mall on a Saturday afternoon, maybe the manager will be able to answer your specific questions about the jewelry you see. Source: Google reviews. This poses some issues for items as pricey and complex as diamonds—and for some, such as diamond industry expert Michael Fried , it hurts customer confidence in the brand overall:.
We asked some pretty basic questions and the answers were all over the place. In his professional opinion, what he saw was both overpriced and of subpar quality. But for those who go by the look and style of the jewelry and not its specifications, many customers rate REEDS Jewelers with four or five stars.
Some of the happiest customers are those who order custom pieces and love the result. Some customers encounter problems with their REEDS jewelry, such as diamonds coming loose or falling off entirely after only a short time. These reviews go one of two ways—some are pleased with the terms of the replacement and how quickly they get it back. Others share that they are heartbroken at the loss of a sentimental engagement or wedding piece that was carefully picked out and ceremoniously given.
And of course, some cannot see past poor craftsmanship when something like this happens—no matter how promptly the matter is resolved. Standards are higher than ever, and customers are often reasonably well-informed. Sometimes, a design catches your eye, and you fall in love! On the other hand, experts with broad knowledge of industry standards and pricing have raised concerns about the longstanding jewelry chain.
And it would be a mistake to take those concerns lightly. If you do choose to give REEDS Jewelers a try, make sure your due diligence is done before walking into the store or perusing their site. A sustainable business model and staying ahead of industry trends are two factors that contributed to the success of Reeds Jewelers. The luxury jeweler and giftware retailer, founded in , has seven store locations, three of which are in the Buffalo area.
Here's a look at how Reeds has stayed in business and profitable for so long. That level of control came in handy during the last several months disrupted by the pandemic.
For example: Reeds Jewelers has its own factory in the Buffalo area that imports items such as diamonds. That not only cuts out the middle man between manufacturing and retail and reduces overhead costs, but also helps the jeweler avoid the supply chain issues causing so much disruption elsewhere.
Owning its own real estate: All the company stores are located on family-owned real estate, which gave the business a lot of control during the health crisis. Zimmer was a terrific salesman, and he provided personal service, friendship, and good deals to his customers.
He gave his store managers considerable freedom, since that was how he liked to operate. By , the Zimmers controlled two dozen retail outlets, mainly in North and South Carolina. Bill and Roberta ran the original store in Wilmington, and managers or minority partners operated the other The stores offered fine merchandise including diamond rings and jewelry, gold jewelry and chains, watches, and rings containing rubies, sapphires, and emeralds or gemstones such as opals and garnets.
The late s was a difficult time for the retail jewelry business, as the price of gold tripled due to inflation. Like most jewelry retailers, Reeds borrowed to buy its merchandise. With interest rates close to 20 percent, about 10 percent of what the company was bringing in was going to pay the carrying costs for their inventory. Then, in , the Wilmington store was robbed. And Zimmer did not have any insurance on the stolen merchandise. Alan Zimmer, the youngest son, came home from college to join the family business in December He had earned an undergraduate degree in business from the University of Georgia in three years and was working on his M.
Joining the company as executive vice-president, Alan took charge of merchandising. He completed his master's through independent study.
Although Alan did not officially become president and CEO for several years, he convinced his father to begin making major operational changes immediately. One of the first things he addressed was the company's decentralization. Reeds was essentially a collection of 24 independent operators. The store managers did their own buying and merchandising, hired their own staff, set their own credit policies, and made their own deals with customers.
Alan Zimmer changed that. He hired professional managers, from other jewelry chains such as Kay Jewelers and Zales, developed a merchandizing staff, and divided the company into five regions, hiring regional managers for each. He centralized the company's diamond and jewelry buying as well as its advertising printing, saving money from the resulting economies of scale.
He also hired James Rouse to be the company's first full-time financial officer, installed a computer system for inventory control, and began opening new stores. That same year, Reeds Jewelry was incorporated in North Carolina, making a number of affiliated corporations into subsidiaries of a single organization. During , Alan convinced his father and the other members of the family to take the company public. He stressed the need to avoid problems faced by families when some members are interested in the business and others are not.
He also thought he would be able to more easily attract professional management if the company were held publicly. That family-owned chain had 19 stores in the Southeast and Midwest, and the acquisition increased Reeds size to a store chain.
In , Reeds purchased Gray's Jewelers, Inc. In , Zimmer and Rouse implemented two other changes, addressing the company's marketing and credit policies.
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