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National Jeweler 2009 Retailer Hall of Fame: Multi-Store Independent
Polacheck's thrives on giving best experience
By Victoria Gomelsky
July 28, 2009
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| Steve Polacheck, now celebrating his 50th year in the jewelry business, owned a succession of retail operations before opening the first Polacheck's in 1989. |
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Editor's note: National Jeweler's Retailer Hall of Fame honors jewelers who have made significant contributions to American jewelry retailing. This is the second of three articles profiling the 2009 inductees.
Calabasas, Calif.--On a recent Thursday afternoon at the Polacheck's Jewelers flagship store in the idyllic Southern California community of Calabasas, Martin Furtak, a longtime customer, studied the contents of the Rolex showcase, his eyes gravitating to a 38-millimeter "Datejust" model in steel.
"I was going to get a [Rolex] 'Milgauss' at 42 millimeters, but that seems too large," said Furtak, a finance executive from nearby West Hills. "I've been buying Pateks here for six or seven years. They stand behind their products."
At the next showcase, another watch enthusiast, Ken Le, a partner in a local accounting firm, also admired a lineup of Rolexes.
"I buy a watch here every other day," Le said, presumably joking. "Not because I need one, but because I like the people."
Both men's loyalty can be traced directly to owner Steve Polacheck. Half a century after he joined his father in the family jewelry business, a humble single-store operation in Glendale, Calif., Polacheck has grown into one of the country's leading jewelers, with a three-store chain of upscale salons that have earned him a spot in National Jeweler's Retailer Hall of Fame in the multi-store independent category.
Occasionally, however, Polacheck still feels like a newbie in the business.
"Just when you think you know it all, you find out you have to start practically from scratch," he says. "What applied in 1965 isn't even a thought at this stage."
The biggest shift has been in consumer knowledge levels, Polacheck says.
"In 1965, there was no such thing as Rapaport," he says. "Consumers would base their decisions on the integrity of the store's name and the service. Today, in big metropolitan areas, [customers] know the pricing of diamonds as well as the salespeople. The big profits are gone; now, it's all based on volume."
Service, sweet service
Still, Polacheck and his son Brent, who serves as president of the business--which counts locations in Sherman Oaks and Thousand Oaks--have not forgotten the importance of connecting with clientele through gestures big and small.
"We go out of our way to make sure our packaging is exquisite," Polacheck says, citing the real pinecones that are tied with ribbons around packages during the holidays. "We have dinner parties, we have ladies' nights, men's nights. We're constantly trying to give them things."
After hearing about a customer who was recently disgruntled, for example, Polacheck sent the man a giant box of chocolates.
"He couldn't thank us enough and has already mentioned three items he wants to buy in the near future," Polacheck says. "A $75 box of chocolate will turn out to be worth thousands of dollars of retail sales. So we're very in tune with people's feelings, making sure the experience at our store is better than at any [other] store."
Of course, it doesn't hurt to have the world's finest watch and jewelry lines in the showcases, bolstered by regional exclusivity. Rolex, Breitling and Cartier are longtime partners, while Panerai, Patek Philippe and IWC are among the newer ones. David Yurman, John Hardy and Penny Preville lead the designer jewelry segment.
"When a competitor gets a line that we have, I get rid of it because I do not want to get into a discount war and, unfortunately, that's what happens when neighbors are too close, carrying the same brand," Polacheck says.
As the anchor tenant at The Commons at Calabasas, a lifestyle center catering to one of the region's most upscale (and celebrity-studded) demographics, Polacheck's maintains a reputation for excellence that continues to draw in high-net-worth individuals. But it is not immune to the vagaries of a crashing economy, and Polacheck has noted a lack of interest in jewelry sales.
"The women who have lunch in front of our store, they're not coming in to browse," Polacheck says. "There's a definite absence of demand for designer and high-end jewelry."
Lacking a young clientele, the store can't rely on the bridal category, either.
"I could have a three-quarter carat in my case and it would sit there for 10 years," Polacheck says. "We cater more to second marriages and anniversaries."
To maintain his reputation for paying his bills on time and in full, Polacheck has taken a ruthless approach to inventory.
"I'm having a great June in all our stores and that's an optimistic sign, but it's not enough to have me start buying like the old days," he says. "I'm going to be very cautious until I have no choice but to fill up holes in my case. This is not a time to speculate."
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