People always complain about "outsiders" coming into management roles, and in many ways they have a valid point. But Zales has had several "insider" Zale Corp. leaders who couldn't stop Zales from losing market share. It remains to be seen if these merchants can pull it off. If they have the right drive, energy, and skill, they can utilize their support staff effectively. Just because someone is chief of merchandising doesn't mean Zales will fire their buyers. If a fashion merchandiser can explain their vision and strategy to a competent buyer, the buyer should be able to put together an assortment that would work, right?

I have a small trade shop and do some work for multiple Zales stores. Judging by the new merchandise I've been seeing I predict further loses if the consumer takes advantage of their extended warranties. Looks like they are on a short term boost run right now. Also, a recent price jump in retail repair pricing with no additional compensation for the trade shops who do the work has me steaming about the strong arm tactics at the corporate level.(on some jobs they actually dropped the prices paid to the jeweler dramatically, while raising the retail) Needless to say I am concerned not only about their company's fate but mine as well.

The continued employment of individuals with zero experience in jewelery, in particular in the aquisition of new products is going to be equivilent to adding more ballast to an already sinking ship. lets face facts 90% of "buyers" don't have a clue what they are doing! Cast in place mountings, stitched "faux" channels and light as a feather mountings are killing the industry. Take into account that Zales seems to have cornered the market selling these styles it is no wonder they are dying a slow painful death. Whitehalls won't be the only firm filing this year. My bets are on Zales filing mid-january '09.

There are several factors that will determine the success or lack thereof of the future of Zale's or for that matter, any national retail chain. The first question that management needs to answer is, "Who is our customer?" I agree that lowering metal weights, lowering diamond qualities and reducing quality standards is the commitment to a slow death. Personally, the way I am running my manufacturing business is, holding firmly to my commitment of quality. However, I am working on reduced gross margins for the next year or so, to protect my net revenue base. In fact, with reduced margins and high quality, I may increase revenue, which could offset the reduced GM. If I were running Zale's, I would stick to the quality their core customer expects and hold prices as best possible...give away some margins and hope to increase revenue. At the end of this economic situation, elevating yourself may be more of a challenge than expected.

Maybe it is time for Zales to look at their buyers and their relationship with the vendors who employ their children and look for quality styling and not nepotism.

"VP and treasurer David Sternblitz does note that Kwan’s parents owned a jewelry store." Gee, that must mean that because my father was an auto mechanic I can fix a car too!

Loosecannon, I think that was just meant as kind of a cute/interesting aside ... I don't think that's part of her qualifications. (And my grandfather was a diamond dealer. He didn't talk a lot about the industry, but you can bet I mentioned that when I interviewed for my first diamond writing job.)

It is nice to see a change in the exec ranks at Zale Corp. Beryl's ranting and Mr. DeNicola's hands-off approach threatened the company's existence. I think it is great to see qualified people who can and are making a positive change at the top US jewelry retailer and I encourage the changes. What the US needs is more dynamic, optimistic people in the top spots and less bullies. Gil is a gentleman, Theo a proven leader and from what I know, Neal will make great strides in our industry's #1 jewelry store. It helps us all if ZALES succeeds in their plans.

Rob, My comment wasn't meant as cute I just thought the statement was kind of silly since it had no direct bearing on Mary’s qualifications. In answer to your comment- Mentioning a relationship in a personal interview is one thing, but when a corporate spokesperson makes a press statement about it it’s is quite another. David's comment was made in the context of outlining Mary's qualifications and I am sure it was done in an effort to show that she had some familiarity with jewelry. How else is it to be taken?

I am very curious to see if the whole "we want management experience" approach is going to work. I understand the whole concept, but in some ways the jewelry business is a lot different than selling clothes or whatever else companies these new execs have come from. At a jewelry retail store level you are trying to get people that have just met you to spend 1,000's of dollars on something no bigger than your fingernail sometimes, hardly the case with clothes. Diff's like that are things that people new to the jewelry bus do not completely understand, proof is when my regional said that Neal mentioned maybe going to a less formal dresscode. You tell me who you would rather take advice and spend 100's/1,000's of dollars with, a man in a suit or a man with some khakis and button down shirt? Another bad thing about exec's with no jewelry experience is the cost cutting that is going on. I understand the concept but I also believe that if the execs had been in jewelry before they would realize how important constant training and clientelling is to a store and how much the company has come to lack these things and push these values onto mgrs so that the store will continue to build their customer base and gain market shares in the malls. Of course the mgrs at store level dont know this b/c theyre new to the jewelry business also! Another move that I think wouldnt have been made if the exec's had worked in jewelry before is the blending of the brands. You cannot expect 2 stores to just easily mesh together one day b/c you tell them to, especially when those two stores are used to receiving faxes everyday with mall matchoffs and notes from their regional to beat the gordon's store that's down the mall from you. Then to think that regionals aren't going to be biased towards certain stores is just crazy, if a regional is a gordon's man for 10-20 yrs of course he's going to show favoritism, it's human nature. The only way this could have worked the way they want it to is by combining the stores in the same malls plan's. Think about it, if you work at a zales store and a customer can't find something are you really going to want to send them to the gordon's down the mall, knowing that if they buy something there, tomorrow the fax is going to show that gordons did X amount more than you? Want the store's to blend better, then blend their plans then stores wouldnt have to worry about seeing "store xxxx we need some help from you, store xxxx down the mall thanks for a great day." If the exec's had worked at store level before they would have been able to see these problems that would occur. I have high hopes and expectations for zales, don't get me wrong. We will see what happens. Neal and co, if you read this, my best suggestion is go work at store level for a month or two at least! Also, talk to old old workers of Zales and Gordons and ask them advice on taking the company back to its roots. ;-)

I agree with random on most everything. As a former Regional Manager in one of the biggest markets I saw the product quality drop significantly. Further, the Director of Stores management level went way down when when they started replacing DOS's with RM's from the smallest markets paying them half the salary another cost cutting measure! They were not able to give solid direction to markets doing 3 to 4 times the size of the markets they came from. Random makes a good case for what I am saying.I am talking 7 to 10 years ago and it has only gottem worse.