Jewelry Store 2.0? Experiential Diamond Retailer Opening on Fifth Avenue

It will greet visitors with quotes from Plato and a history of famous diamonds. It boasts one of the few indoor-outdoor spaces on Fifth Avenue. And it vows to charge customers the same price for diamonds online sites do.

It’s Facet of Love, a new “experiential” jewelry store concept due to open this fall at 61st Street and Fifth Avenue in New York City, spearheaded by diamantaire Moshe Lax.

Lax (pictured, below), the CEO of Dynamic Diamonds and one-time partner to Ivanka Trump in her jewelry line, hopes his concept will provide the answer to the general woes plaguing the industry.

The industry’s problems are two-pronged, Lax feels: People see that online prices for diamonds are cheaper, but don’t enjoy the e-tail buying experience.

“People don’t want to buy diamonds from an Excel spreadsheet,” he says. “There is no romance, there is no experience to it. So people just push it off.”

As befits a store close to Apple’s New York City flagship, Lax’s 10,000-square-foot space will be all about the experience. It will feature quotes about different types of love. A gallery in the middle will spotlight jewelry designers. A diamond bar, similar to the Apple Genius Bar, will be staffed by gemologists eager to teach consumers about diamonds. There will also be an outdoor garden, perhaps the only one in a Fifth Avenue store.

“This will be like Apple, like Eataly,” Lax says, noting he also hopes to draw tourists. “There will be champagne, there will be coffee. This will be a place that anyone in New York can come in and just enjoy.”

But perhaps the most surprising aspect is the store is also going head-to-head on price: He says that the store won’t charge more than online vendors and is willing to match any advertised prices.

How will that work, given the costs associated with retail rents, particularly Fifth Avenue rents? “We will buy better,” Lax says. “We also manufacture diamonds ourselves.” Other stores “have inventory costs, setting costs,” he says. “They work on the old model. We plan to be cheaper than anyone.”

If Lax’s new model works in New York, he plans to take it to other metropolitan areas.

(Images courtesy of Facet of Love)

JCK News Director

11 responses to “Jewelry Store 2.0? Experiential Diamond Retailer Opening on Fifth Avenue”

  1. Let me get this straight. Rent for retail space on Fifth Ave is currently $3000 per Sq Ft. so let’s say, he signed a deal at a tremendous discount at $2000 per Sq Ft. so that puts just his rent at $2000 x 10,000 Sq Ft = $20,000,000 a year. Plus costs of renovation. Plus costs of what, at least 20 Employees in Manhattan? Plus 8.875% Sales Tax in NYC, that online shoppers don’t pay…. And he thinks he can buy better than the online diamond companies who currently purchase in excess of $500,000,000 a year in diamonds? And he’s going to be able to compete on a price match to online model?
    Wow, if he pulls this one off, his new nickname might become Jesus, because this would surely be a miracle in the making.

    • Online jewelers don’t purchase anything; they list diamonds they don’t own, mostly from Indian vendors overseas who have leftover goods, and the online jewelers’ cost is high memo prices, not cash prices. So they’re selling inferior items with a higher cost. If this company either buys for stock ahead of time, or negotiates better terms with the same Indian vendors (the online jewelers receive generous payment terms with generous return options), they could definitely compete if they wanted to. Not the best margins on the diamonds, but with the setting profit, they can do it.

      • Thanks David I doubt that they can pull up real profit. maybe on papers to save face. They are too late for the party. Who ever approved this idea, the whole team should be fired right away.

        • I think they’re going for volume. Blue Nile was never really profitable and they still sold the company, and now from my research margins are up on their stones. This company may go for market share and if they get big enough, the model could be profitable eventually.

  2. This concept could have worked had they not chosen a name and image that’s so out of touch. Why spend all that time and money on a concept that ends up looking 20 years old the day it opens?

  3. ah a start up by De Beers. It would have worked 15 years maybe 20 ago, It looks more like facet’s of pain. Let us know in couple years when it shuts down.

  4. Wow, Go for it Lax!
    We all need innovation, new ideas and people willing to try them in this industry we can got. Maybe Fact of Love will become the new benchmark for the rest of jewelry retailers to follow.
    For the all the naysayers….. where is your big idea?

  5. Speaking of Indian diamond vendors, did Moshe ever pay the $3.2 million he owes KGK Group? I hear profit margins are going to be the least of his problems soon.

  6. this could be the most embarrassing thing associated with th trumps ….. but it will not as long as a psychotic freak occupies the whit ehouse

    bizarre they rented to him as he is famous for stiffing folks

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