Adding another iconic name to Roseville’s distinguished list of retailers, Tiffany jewellery. opened its doors Friday to dozens of excited shoppers.
Joelle Speed of Granite Bay said she and her daughters came to find a present for her husband. She said she was happy she didn’t have to go to the San Francisco Bay Area to browse.
“I like their selection. They have everything from classic to modern. It stands the test of time,” Speed said.
The opening — giving the region its first chance to bring home a “Tiffany Blue” bag without going to the Bay Area — comes at time when purveyors of luxury goods, including Tiffany, have seen their sales squashed by the recession.
“Jewelry is a disaster,” said Howard Davidowitz, chairman of the national retail and consulting investment banking firm Davidowitz & Associates.
About 2,000 jewelry stores, including time-honored brands, have gone out of business since 2008, Davidowitz said.
Tiffany has been taking its lumps, too. Sales for the New York-based company pendants declined 22 percent in the first quarter, and earnings dropped $40 million from the same quarter in 2008, the company announced recently.
In addition to other cost-cutting measures, the company decided to reduce the number of stores opening this year to three, down from six in 2008.
Friday’s opening, then, was a vote of confidence in the Westfield Galleria at Roseville, which has continued to attract high-end tenants despite the downturn.
Margaret Quattrochi, director of the new store, said Tiffany was attracted to the area because many of its customers live there.
Tiffany enjoys some tony company in the recently expanded Westfield Galleria, sharing a corner with Louis Vuitton, Burberry and high-end sunglass outlet Ilori. It’s the kind of combination that creates a shopper magnet.
“This is the mecca of retail,” said Stephanie Ringey, the mall’s marketing director.
In November, Westfield opened the first phase of a $240 million expansion with 48 new stores. Another 51 stores will be added by November of this year, Ringey said. With the exception of one store that decided to open at another area mall, retailers are neither backing out nor slowing up openings, she said.
Retail consultant Doug Fleener said it makes sense for Tiffany to position itself for a turnaround in the economy.
“Jewelry is going to come back. For Tiffany & Co. it’s a good thing to get good locations and be ready for when we come out of the slump,” said Fleener, managing partner for Dynamic Experiences Group LLC, a retail and customer-experience consulting firm.
While other retailers won’t survive the downturn, Davidowitz said, Tiffany appears to be in relatively strong financial shape. It remains “solidly profitable,” according to a press release issued with its last earnings report.
“If you believe in the future, maybe it’s not such a crazy decision,” Davidowitz said of the decision to open a new store.
There was no talk of the economic downturn at Tiffany’s 5,600-square-foot store Friday.
Speed wore a Tiffany Key necklace and had a Tiffany engagement ring.
“I love my wedding ring as much now as I did 11 years ago,” she said.
As Quattrochi moved around the store, all of her sales clerks seemed to be engaged, showing off a ring, a necklace or a handbag.
Some customers visiting Tiffany on Friday looked the modern picture of couture — earrings complete with miniature dog in tow. Others, wearing T-shirts and jeans, enjoyed some free coffee, pastry and a look around.
While the store does carry high-end pieces, including a $100,000 aquamarine brooch, the retailer offers more moderately priced items as well.
Quattrochi, transferred up from the chain’s Carmel store, said the store will adjust to the local market.
“We do business with people who are celebrating. People do not stop celebrating,” she said. “They don’t celebrate less — they celebrate differently.”