Interview with Zale CEO Neal Goldberg

You cannot play music in a store without paying the music company for the rights to do so. Zales could be fined for it. Also a lot of companies round off timecards.

While I am at it, I would also like to say.. Mr. Goldberg you really need someone else as person who designs the look of the cases. The decorations as of lately are just plain ugly!! Whose bright idea was it to those grass balls with the dragonflies in the cases with the hot pink background?! I had customers tell me it looked like a big snot ball! Also, the newest things are those grass stickers to the outside of the cases!! Okay, whose bright idea was this? Children are going to pick at them and make them look horrible! Why are you using GRASS designs to decorate a jewelry store? Doesn't that belong in a store selling men's outdoor wear? You need to hire a woman as the decorator, or a feminine gay guy. For the new door busters, you should have only made them eligible to customers if they applied for a Zale's card! We are in the gutter! More useful truth! Much love

I have been a Zales Outlet associate for over four years. I am just part time because I am a full time college student, thankfully graduating from college with my bachelors in biology next summer. I have received only a $.50 raise in all of my time working there, and that was only given after I threatened to leave. I don't even make $8 an hour. At one point I left for BCBG outlet which started me out at $10 but the management was unbearable so I came back to Zales. My manager Larry, who I have always worked under before he became ill, is the nicest man I have ever been around and the reason I stayed. He is dying now of cancer that first appeared as a tumor in his throat, and now is in his pancreas. I have seen him go through chemotherapy, radiation, and not being able to keep his food down. He has had brain surgeries, and he even was back to work within a week after one. He worked until his body could no longer take it and now he has been dropped from insurance because of his eight week period of medical leave. It truly hurts to see this 70 something year old man in so much pain. He now is letting hospice take care of him and isn't fighting anymore. He has worked for Zales for well over 30 years. It just makes me cry so hard to see him in this pain!! Today at work the AC went out. It was in the high 90s here in my state. Because it is a Saturday we were told that no one can come until a weekday. All of the customers and employees dripped with sweat and the fans we brought just circulated hot air. Because it is an outlet store, opening the door gave little relief. The computers we use to clock in on always round the time, so I don't feel it is fair or accurate in paying us. Our music was taken away because we were told that unless it was some type of music system installed by Zales, we couldn't have any! It gets so quiet at times it is scary!! I am talking of the negative, but there are many good things as well. I have met many customers from around the world. It is very fulfilling to help find the perfect gift for a customer, and it makes me so happy when I can help with engagement rings! As far as some of the comments above, at Zales we do have a dress code. Do you really expect the employees who are making survival wages to be able to afford very nice clothes?! I have to save for the dry cleaning bill! The same logic applies to wearing the jewelry. Luckily, I have been able to wear a few pieces because my dad bought them for me. My pieces mostly came from clearance. Our employee discount in clearance was reduced to 10% so I probably won't buy anything in the future. We have had over five regional managers while I have been here!! Lets face it folks, Zales is in business because we have CHEAP things, and in this economy.. everyone but the big dogs like Neal Goldberg need money for FOOD and RENT and spending an excessive amount of money on jewelry in the real world is STUPIDITY!!! I hope you enjoyed this article of truth from the real world! I wonder if Mr. Goldberg has ever worked a day in a 90 something degree store! Much love

I visited a pacesetter store yesterday for the first time, just to get a feel for it. The elements and product presentation looked really great, but some of the new product lines were seriously out of place in a Zales store. The diamond product looked great...even better merchandise than I expected. And they've put in some really cute Sterling and Diamond pieces for some introductory price points. Goldberg has said that the pacesetter stores are doing well...But the crazy fashion lines looked totally out of place. (I didn't note the names, so someone else will have to fill in here for that info, sorry about that!) The Simmons jewelry (both men's and women's) was fashion forward, but still seemed appropriate for a Zales store, including the Hello Kitty line, because it is diamond. But beaded jewelry in Zales? No way! Let the dept stores have that business. Why would they want to confuse or dilute the Zales fine jewelry customer they spent decades building? In Goldberg's conference call a couple of weeks ago, he talked about how Zales wouldn't be competing w/ Friedman's and Whitehall going out of business sales in 2009, and presumably this would give then an edge since there would be less competition, and a greater opportunity to maintain respectable margins. But there were at least 2 full cases with merchandise that did not belong in a Zales store. Isn't Zales supposed to be "The Diamond Store"? There is so much newness in fine jewelry, why would they want to throw beads into the mix? There are many concerns with Zales...BBB leases, dismal 2nd quarter losses, and now their violations of credit card rules w/ Citibank. How long can we keep rooting for this underdog??

My main problem with Zales or Peoples as it is called up here in Canada is with their sales associates. I would suggest that their associates are knowledgable about only the items that they have been told to push. When you walk in there and show interest in a certain item you are basically told you should not buy it. I was in a People's store in a town called Lindsay. The associate was a middle aged woman who was dressed well, albeit for rather orange skin. Every time I showed interest in something, she would visibly cringe and say "you really want that, alright then". Then she would suggest something else much more expensive that she said was just fabulous. Well if it is so fabulous why wasn't she wearing it? When I looked at her hands she had cheap plastic and silver jewellery on, nothing that would ever even be sold at that store. I think for the brand to last you are going to have to start at the bottom up and work on these associates, get them to wear the product, to make a person seem happy for buying what they wanted not guilting them into something else and making them feel like they have poor taste.

For years I have heard people being critical of the sales associates in Zales; comparing them to other jewelry stores such as Tiffanys' such as Dan has above in his comments. One thing you do not understand, Dan, you are assumming that Zales associates are treated the same as the Tiffanys' employees by their corporate executives. Have you ever considered that the Tiffany's employees are paid commensurate to the value Tiffany's places on them? Why do you think they do not just look at it as a "job". Zales associates are treated like clerks! Not paid; not valued; how in the world can they even afford to look professional or even afford nice jewelry? It is sad that they are looked upon as they are part of the problem? The problem is how corporate Zales view the significance of professional sales in their company.; quote" all they have to do is ring it up" and they pay them commensurate with this view. They are a department store mentality and put all the value into signs cutting pay and benefits; cutting bonuses out and lowering commissions at the store levels while spending on elements and decor sends the message of what they value...all you have to do is look a little closer Dan...its not the people at the store level..its always been at Corporate.

I agree with "Seasoned Veteran". Zales has alot of top executives that have never even worked in a jewelry store. How can they appreciate what really happens during a sale? The skill that is required and is what makes an unforgettable moment. I can assure you that customer remembers the associate...not how pretty the store looked or even what the signs said. But when they bring in their fiancee to meet the associate; then in the years to come brings in their first born to show that same associate...if they had ever experienced that and now lead the company Zales would be the leader in the jewelry industry because it knows to VALUE their personnel over all else! Pay them; reward them; Zales your greatest asset is your Sales people...Its the basics of the Retail known as Jewelry!

Retail is not Retail just as Flying is not Flying. There are big differences. Jewelry retail requires assistance to open locked cases. Signs and Decorations cannot do this. Create emotion? Yes, Professional Sales people do this; they create the visual and enjoyable shopping experience. You need a lot of advertising; decor props and signs in department stores..I agree. But Zales is always repeating itself in putting corporate in charge of driving the business. It is a simple new approach for Zales if they would just realize its the people in the stores that really drive the business; they continue to shorten the staffing levels to increase spending for signs and marketing. If you do not invest in the people at the store level customers will just walk in and walk back out again; no matter how pretty the stores are. They cannot create ownership of merchandise that is locked up; that they cannot touch; try on or see up close. If Zales would only prioritize 1) Store Personnel 2) Signs. Then leave them alone and let them sell! This is the only thing Zales has not tried yet. It has always been run the same way - different faces at Corporate but same old ways! I am a firm believer in Department stores or self serving types of Retail Stores definately need corporate offices driving their business through signs and decor/marketing, etc. It is a partial and sometimes completely Self Service for Customers...Jewelry Retail is Different..I hope they will get it one day because it is a Great Company.

I am also a Crate & Barrell fan and I also believe that themes, displays, and signs can create an exciting atmosphere; but that just goes half way. Many of the stores that are successful using these strategies are self sevice department and specialty stores. Jewelry salespeople are selling a product that requires knowledge and enthusiasm. All of the fancy jingles, advertisements and signs won't help if the quality of the sales staff isn't dramatically improved. This means paying more for better people. Until senior management is willing to invest in this area, it will be more of the same.

Ten years ago, we ran a story about how two upscale non-jewelry companies, Cadillac and Elizabeth Arden, were trying to inject youthful zest into brands whose appeal had dwindled to a few mature consumers. (This was in Cadillac's pre-Sopranos, pre-Escalade days.) JCK's then-chief-editor George Holmes pointed out in his editorial that while it seemed odd to be writing about cars and makeup in a jewelry magazine, in fact it was a good thing for this very-insular industry to look outside itself and take some lessons from other retailer categories. Like Neal Goldberg, I'm a great admirer of Crate & Barrel, and have often asked why, if it can be done with furniture, can't it be done with jewelry? People say "the middle market's dead." I say it's alive and well, but it has better taste than it used to. To wit: compare C&B to the late Levitz. A $1200 sofa at either store costs the same--and it's solidly a middle-market price point. But at C&B the room vignettes show high design complete with accessories, linens, and faux walls, and inspire the customer to recreate the look at home. At Levitz, it was all about high pressure, price, no payments for five years, whatever it took to get the customer to buy TODAY. The furniture was shown in a vast floor setting that gave customers little or no inspiration to redesign their own homes. There's a lesson here. I think Goldberg is conceptually on the right track, but as Rob says, only time will tell if all the pieces can come together for a real turnaround at Zale.

WALK INTO TIFFANY'S IN NYC. ONE OF THE PINNACLE JEWELRY STORES IN THE WORLD. THE ASSOCIATES ARE WELL DRESSED, VERY INFORMED. ALTHOUGH YOU KNOW YOU ARE IN ONE OF THE TOP JEWELRY STORES THEY MAKE YOU FEEL "COMFORTABLE" EVEN IF YOU ARE THERE JUST TO LOOK. THE STORE, THE DISPLAYS AND THE ITEMS ARE TOP OF THE LINE.

YOU HAVE TO HAVE BOTH KNOWLEDGEABLE AND ENTHUSIASTIC SALES PEOPLE. AND I ALSO THINK THEY HAVE TO LOOK THE PART. NEATLY GROOMED,DRESSED VERY WELL AND IF THEY WEAR JEWELRY IT MUST BE HIGH QUALITY. TOO MANY TIMES YOU GO INTO A JEWELRY STORE, ZALES? AND THERE IS NO LIFE, STORES ARE MEDIOCRE AT BEST. THEIR MERCHANDISE IS LIKE EVERYONE ELSE'S FOR SALES ASSOCIATES THIS MUST BE MORE THAN JUST A JOB. ENTHUSIASM BEGETS ENTHUSIASM.

Using emotion/love to sell jewelry and diamonds. What a concept! How come the industry hasn't thought of this before? But seriously, I guess what Mr. Goldberg is really saying is that he rejects the generic Big Ideas of De Beers and believes the future of Zale is in setting the store apart from its competition: transforming the chain from idea-less follower to innovative leader. He's right, there's nothing radical about it--it's good old fashioned common sense.