Jewelry store expands, thrives
Longtime business moving to bigger facility
The Desert Sun, CA
Nearly 60 years after it was established in Indio and relocated to Palm Springs and then Palm Desert, Leeds & Son Jewelers is preparing to move again into larger quarters on El Paseo in the fall.
It will be the final move and expansion for the family-owned business, said president and CEO Terry Weiner.
“It goes back to about three years ago when we realized we’d need much more space,” he said.
The current 4,000-square-foot space is no longer big enough for the store’s employees, including the three watchmakers, three jewelers, five-member accounting and advertising team, and the sales staff, he said.
Weiner’s parents, Edward and Eleanore, started Leeds in 1947 in Indio.
It has since grown into one of the highest-volume jewelry stores in the country, Weiner said.
The business opened a store in Palm Springs in the mid-1960s and one on El Paseo 14 years ago, he said.
In 2003, Leeds & Son closed its Palm Springs site and moved everything to its Palm Desert location.
“In the Coachella Valley, I’d rather have one superstore than break up the staff and inventory,” he said.
(Weiner has a separate company for his soon-to-be three jewelry store locations in Hawaii.)
“Certainly, El Paseo is the center of shopping for the Coachella Valley,” Weiner said, adding Palm Desert is centrally located for consumers. “The eastern valley also has offered a substantial amount of new residential growth.”
“El Paseo has been a big part of our growth,” he said. “In addition to that, we are fortunate to have a business plan in one of the fastest-growing parts of the country.”
The store’s product line has “increased substantially over the years,” Weiner said, noting Leeds has exclusivity in the Coachella Valley on several product lines, including Rolex, Bulgari and Patek Philippe.
Leeds’ new 6,300-square-foot store will have 4,500 square feet of showroom space. It will be located where the Edith Morré store is now. The longtime women’s shop is set to close by the end of the month.
“A big national chain store is not taking over Edith Morré. It is truly a local business,” Weiner said.
The renovations are scheduled to be complete in mid-September, he said, noting the store will be adding about eight new employees for a total of nearly 30.
Every morning, the entire staff gathers for a meeting to discuss the day ahead, Weiner said.
And all employees attend a training session every week, he said. “Training is very important. We have a comprehensive training program we put our employees through. It’s continuing education.”
“Training is vital,” said Steve Rich, chairman of the Palm Springs Chapter of SCORE (Service Corps of Retired Executives).
“In a business such as a jewelry store, the important things are certainly the knowledge of the merchandise and the products,” he said, noting employees should have a clear understanding of the policies of the company, particularly about returns, exchanges and repairs.
“The customer service aspect is very important,” he added.
Weiner recently discussed the growth of his business.
Growth
Question: How much have your sales/revenues grown during the past year?
Answer: As a rule, we’ve been averaging about 25 percent growth a year for the past decade.
Q: To what do you attribute the growth?
A: I think it’s a combination of a strong work ethic and being at the right place at the right time. It would be silly to take credit for our growth without recognizing the population growth of the Coachella Valley.
Q: What practical lessons can another business learn from your experience?
A: I think the key is to love your employees. They’re the lifeblood of your business. Empower them, teach them and understand you’re only as good as your staff.
Q: What have your biggest mistakes been?
A: I can remember about 20 years ago, a developer coming to me and offering a jewelry store/watch store location in a placed called the Caesar’s Forum Shops (in Las Vegas). I didn’t think it would be successful and passed on it – not my most brilliant decision in business.
When I started in business 30 years ago, I was afraid to delegate. Once I started to let go and we hired talented people, we started to grow.
Q: Do you have outside experts?
A: We have an in-house accountant.
I bring in (jewelry industry) consultants twice a year. They analyze the business and the operation, and they’ve been quite valuable.
It’s a great opportunity to improve your business. Leave your ego behind. Be honest with them and be truthful because there’s a lot to learn.
Location
Q: How did you pick your location and do you know its history?
A: (For the current location), we were located two doors down, and I walked by it every day and said, “This would be a beautiful jewelry store.” It was empty for several years. Before that, it was a couture clothing store.
(For the future site), I called a commercial leasing specialist, Dick Baxley. He called me, and I decided to buy the building, not knowing even if I wanted to move into it. It was a great building, and I wanted to invest in real estate on El Paseo.
The building has three stores in it: Edith Morré, which is leaving, and Duxiana and an art gallery, which are staying.
The market
Q: How big is the market, and who are your competitors?
A: We’re not sure. It’s extremely competitive. There are over 20 jewelry stores on El Paseo.
But you can’t make the mistake that you’re only competing against the jewelry stores. It’s the same discretionary dollar for the art galleries, the Bentley and Porsche dealerships, the high-end furniture stores.
Q: How much attention do you pay to your competitors?
A: Not that much. I don’t want to get into a position where we’re following someone else. I want to get into the position where we’re leading and doing things differently.
Q: What have you done to set your business apart?
A: It goes back to our business plan. We only carry the best products in every price range. We also invest a lot of time with the staff, so that they have product knowledge.
Finances
Q: Who handles the accounting?
A: We have a chief financial officer who is a CPA.
Q: How do you track expenses?
A: We run monthly P&L (profit and loss)/income statements. We have a phenomenal software program designed for the jewelry industry. That’s vital because this is an industry with extremely high inventory cost. You have to have the ability to track sales turnover and inventory control.
Customer service
Q: How do you put good customer service into practice?
A: I think all of our employees share a common voice. We want our customers to get the same treatment as if they’re in our home.
We realize we could not be successful selling someone one item in their lifetime. Our business thrives on the repeat customer.
I have a philosophy that customers want two things from us. They want value, and they want a relationship.
Q: How do you measure customer service?
A: It’s difficult to have a customer service barometer. But based on the very few complaints I hear, it’s obvious the sales staff is able to take care of any problems on the floor. That goes back to empowering your staff.
Employees
Q: How do you motivate your employees?
A: I treat my employees like family. It’s an extended family.
For the last five years, we have paid for 100 percent of their continuing education in the industry. We’ve had a 100 percent match on the 401k plans, and we pay for 100 percent of their individual medical plans.
Q: How much time do you spend training employees?
A: We have a comprehensive training program we put our employees through (every week). It’s continuing education. It covers everything from product knowledge to salesmanship to creating customer service.
Q: How do you find good employees?
A: It’s always a challenge. I hire from within and outside the industry.
Marketing
Q: How do you market your business?
A: It’s a combination. We have two different ad agencies. We have one for television, (in) which we spend 50 percent of our budget. And almost 50 percent (goes) to print.
We use Kiner Communications for all our print (ads), public relations and special events.
Q: How much do you spend on marketing?
A: $500,000 to $600,000 per year, on average. I feel it’s necessary because I can’t make the assumption that since we’ve been here since 1947 that everyone knows us.
