Jewelry is meant to be timeless, but the process of buying jewelry — particularly big-moment purchases like engagement and wedding rings — has certainly changed. Gone are the days of a prospective boyfriend seeking a promotion to fiancé sweating out whether the ring he’s chosen will enamor his bride-to-be. Now, for an increasing number of couples — particularly among Gen Z — it’s a collaborative process involving both partners.
That’s one of the key findings from recent consumer research conducted by Helzberg, the iconic jewelry retailer founded in 1915. “Gen Z couples are particularly engaged in the process” of buying rings, said Mitch Maggart, EVP and Chief Retail Officer at Helzberg in an interview with Retail TouchPoints. “84% of Gen Z proposers said the recipient had shown them what they wanted prior to the shopping experience. Overall, we’re seeing more couples shopping together.”
Now Helzberg is testing two new stores designed to provide an immersive shopping experience that fits today’s consumer: one in Garden City, N.Y.’s 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’s craftsmen room through two large windows. There’s also Helzberg’s proprietary GEMS (Gem Evaluation and Magnification System) device, which displays the quality and beauty of the pieces with a two-camera system and a large 4K definition screen.
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.
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Retail TouchPoints: What’s the basic concept behind these new Helzberg store formats?
Mitch Maggart: Helzberg is in the relationship business, and we’ve 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 — we’re not walking away from more than 100 years of innovation.
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 and a seamless blend of in-store and digital experiences. 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.
The stores will have an edited, curated assortment of products, including products that we wouldn’t 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’s all to attract a wide variety of consumers.
RTP: Why the strong emphasis on customization?
Maggart: Our survey revealed that 47% of shoppers rate the ability to customize their ring as very important, and 76% said they would invest more to have a one-of-a-kind ring created for them. That’s a massive change from decades past, and I’ve been in jewelry my whole life, including 35 years with Helzberg.
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’s room gives them a glimpse into that world of expert craftsmen that they may never see anywhere else.
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 “four C’s” of diamond purchasing: cut, color, clarity and carat. We like to say that at Helzberg, there’s a fifth “C” that stands for “choice.”
All of this is designed to instill confidence in the shoppers’ buying journey so that they feel really good about their final decision. The survey found that 83% of couples say the ability to purchase in-store is important to them, and approximately 60% plan to consult with a jeweler and make their purchase in person.
RTP: Why did Helzberg choose these locations to test this new format?
Maggart: The Roosevelt Field store is an existing store; it’s been operating for close to 20 years, and it’s a very strong store in one of the best U.S. malls. It’s more typical of our mall-based stores, which average 2,000 to 2,500 square feet. Our off-mall stores can be larger, sometimes up to 4,500 square feet.
The Dallas store is a net-new store for us, although Dallas/Fort Worth is a heritage market for us. We’ve never operated in the Dallas Galleria, and that’s a great place for an elevated concept. The Dallas store has a smaller footprint, 1,400 square feet, and we also wanted to find out if we could operate in a great location that’s that small. We want to attract new, younger customers who are at the age at which they’re ready to marry.
RTP: What kinds of KPIs will you be looking at from these stores?
Maggart: We offer an “endless option,” to help customers find whatever product they’re looking for [even if it’s not available at the store], so we’ll be looking at the penetration of owned inventory, versus these “endless” options, versus what’s created on a custom basis. We’ll also be looking at the average transaction [amount]; we’re looking for a significantly higher ticket in these stores. 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?
Additionally, we’ll look at the mix of fashion versus bridal sales — is that mix different from what we see in a typical store? Of course, we’ll also examine conversion rates as well as whether we’re attracting new versus already active customers.
RTP: What can you tell us about Helzberg’s growth plans?
Maggart: We’re actively seeking new locations in heritage markets where we have high brand recognition. That’s 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’re refreshing our entire store fleet to bring them up to a more modern look.
In terms of the new format, we need to learn a bit about these two stores and their operations. Fortunately, they’re both opening before Thanksgiving, and we expect to learn a lot more from the holiday season.
